CIPS Level 4 Module 1 Practice Questions and
Answers 2026 Guide
1. Stakeholders In any activity an organization undertakes, whether strategic, operational or tac-
tical, the activity can only be successful with the input, commitment and support
of its key stakeholders. Gaining and maintaining the support and commitment of
stakeholders requires a continuous process of engaging the right stakeholders at
the right time and understanding and managing their expectations.
2. Global Supply a dynamic worldwide network when a company purchases or uses goods or
Chains services from overseas. It involves people, information, processes and resources
involved in the production, handling and distribution of materials and finished
products or providing a service to the customer.
3. Whole Life Cost- takes into account the total cost of a product or service over its lifetime, from
ing concept through to disposal including purchase, hire or lease, maintenance,
operation, utilities, training and disposal. It is important for procurement to take
all these elements into consideration when making decisions and comparing
the costs of buying, renting or leasing equipment particularly. In most cases the
purchase costs are only a small proportion of the cost of operating it.
4. Stakeholder A systematic way to identify the expectations, needs, importance, and relative
mapping power of various stakeholders.
5. Value Generation Creating value from the supply base can be achieved by not only focusing on
price but also increasing operational performance, driving eflciencies, working
collaboratively or developing continuous improvement activities.
6. Procurement Cy- the cyclical process of key steps when procuring goods or services.
cle
7. Steps of the Pro- 1. Understand Need and develop High level Spec.
curement Cycle 2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
, CIPS Level 4 Module 1 Practice Questions and
Answers 2026 Guide
6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
8. Contract Man- delivers a great amount of data and intelligence that support the smooth running
agement of a business. Historically, the purpose of a contract as a legal document was
to protect the parties from negative consequences of its breaches. Today, when
companies are facing increasing pressures to reduce costs and improve financial
and operational performance, forming and managing new trading relationships
is critical for success. How well an organisation manages its relationships with
partners defines the two core elements of bottom line performance: increasing
revenues and decreasing costs. .. plays an important role by ensuring the smooth
running of operations, protecting the organisation from risks and shaping the
buyer-supplier relationships (Aberdeen Group, 2007; Saxena, 2008).
9. Application of E-Procurement systems can be utilised in the Request for Information (RFI),
Technology Request for Proposal (RFP) and Request for Quotation (RFQ) process as well
as for e-Tendering, e-Auctioning, vendor management, catalogue management,
purchase ordering, order status, shipment status, e-invoicing, e-payment and
contract management.
10. eSourcing / ePro- relates to the electronic procurement of products or services via the internet.
curement sys- Other systems such as electronic data interchange (EDI) and enterprise resource
tems P2P planning (ERP) are also forms of...
11. International The only tripartite U.N. agency, since 1919 it brings together governments, em-
Labour ployers and workers of 187 member States , to set labour standards, develop
Organisation policies and devise programmes promoting decent work for all women and men.
, CIPS Level 4 Module 1 Practice Questions and
Answers 2026 Guide
12. Supplier evalua- is conducted at the tender stage and can be in the form of either a questionnaire,
tion & appraisal interview or site visit to assess the supplier's capability in terms of capacity, fi-
nancial stability, quality standards, performance and organisational structure and
processes in place. Both existing and potential suppliers are scored on suitability
and either approved or rejected to be added onto the approved supplier list (ASL).
This helps to improve existing suppliers performance and also can periodically
ensure you have the right sized and fit of suppliers on you approved list.
13. Supplier Selec- is an important organisational process: purchased products represent between
tion 40% and 60% of end product sales and have a direct impact on the cost and quality
of products. In addition, even a small cost gained by selecting a good supplier can
have great impact on benefits (Aiter et al., 2011).
It relies on multiple assessment techniques which include both quantitative and
qualitative methods (Choi and Hartley, 1996). At the same time, many organisa-
tions continue to select suppliers based on experience and intuition - selective
and unreliable approaches (Kontio, 1996). The most common evaluation criteria
used to select suppliers are: financial health, expertise, operational performance
metrics, business processes and practices, enabling behaviours or cultural factors
and risk factors (Aiter et al., 2011).
14. eSourcing automates contract lifecycle management (CIPS: Electronic Commerce and
e-Business). Today, eSourcing and eProcurement form the core of the e-Pur-
chasing cycle (BuyIT, 2004). eProcurement is the process through which em-
ployees of the purchasing organisations access supplier online catalogues, select
items, conduct the purchasing process and communicate directly with suppliers
(Leenders et al., 2002). ESourcing, on the other hand, is a broader concept as it
incorporates the key elements of the buying process, such as knowledge, spec-
ification, requests for quotation/tender/e-auction, evaluation/negotiation and
contract (CIPS: Electronic commerce and e-Business).
15.
Answers 2026 Guide
1. Stakeholders In any activity an organization undertakes, whether strategic, operational or tac-
tical, the activity can only be successful with the input, commitment and support
of its key stakeholders. Gaining and maintaining the support and commitment of
stakeholders requires a continuous process of engaging the right stakeholders at
the right time and understanding and managing their expectations.
2. Global Supply a dynamic worldwide network when a company purchases or uses goods or
Chains services from overseas. It involves people, information, processes and resources
involved in the production, handling and distribution of materials and finished
products or providing a service to the customer.
3. Whole Life Cost- takes into account the total cost of a product or service over its lifetime, from
ing concept through to disposal including purchase, hire or lease, maintenance,
operation, utilities, training and disposal. It is important for procurement to take
all these elements into consideration when making decisions and comparing
the costs of buying, renting or leasing equipment particularly. In most cases the
purchase costs are only a small proportion of the cost of operating it.
4. Stakeholder A systematic way to identify the expectations, needs, importance, and relative
mapping power of various stakeholders.
5. Value Generation Creating value from the supply base can be achieved by not only focusing on
price but also increasing operational performance, driving eflciencies, working
collaboratively or developing continuous improvement activities.
6. Procurement Cy- the cyclical process of key steps when procuring goods or services.
cle
7. Steps of the Pro- 1. Understand Need and develop High level Spec.
curement Cycle 2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
, CIPS Level 4 Module 1 Practice Questions and
Answers 2026 Guide
6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
8. Contract Man- delivers a great amount of data and intelligence that support the smooth running
agement of a business. Historically, the purpose of a contract as a legal document was
to protect the parties from negative consequences of its breaches. Today, when
companies are facing increasing pressures to reduce costs and improve financial
and operational performance, forming and managing new trading relationships
is critical for success. How well an organisation manages its relationships with
partners defines the two core elements of bottom line performance: increasing
revenues and decreasing costs. .. plays an important role by ensuring the smooth
running of operations, protecting the organisation from risks and shaping the
buyer-supplier relationships (Aberdeen Group, 2007; Saxena, 2008).
9. Application of E-Procurement systems can be utilised in the Request for Information (RFI),
Technology Request for Proposal (RFP) and Request for Quotation (RFQ) process as well
as for e-Tendering, e-Auctioning, vendor management, catalogue management,
purchase ordering, order status, shipment status, e-invoicing, e-payment and
contract management.
10. eSourcing / ePro- relates to the electronic procurement of products or services via the internet.
curement sys- Other systems such as electronic data interchange (EDI) and enterprise resource
tems P2P planning (ERP) are also forms of...
11. International The only tripartite U.N. agency, since 1919 it brings together governments, em-
Labour ployers and workers of 187 member States , to set labour standards, develop
Organisation policies and devise programmes promoting decent work for all women and men.
, CIPS Level 4 Module 1 Practice Questions and
Answers 2026 Guide
12. Supplier evalua- is conducted at the tender stage and can be in the form of either a questionnaire,
tion & appraisal interview or site visit to assess the supplier's capability in terms of capacity, fi-
nancial stability, quality standards, performance and organisational structure and
processes in place. Both existing and potential suppliers are scored on suitability
and either approved or rejected to be added onto the approved supplier list (ASL).
This helps to improve existing suppliers performance and also can periodically
ensure you have the right sized and fit of suppliers on you approved list.
13. Supplier Selec- is an important organisational process: purchased products represent between
tion 40% and 60% of end product sales and have a direct impact on the cost and quality
of products. In addition, even a small cost gained by selecting a good supplier can
have great impact on benefits (Aiter et al., 2011).
It relies on multiple assessment techniques which include both quantitative and
qualitative methods (Choi and Hartley, 1996). At the same time, many organisa-
tions continue to select suppliers based on experience and intuition - selective
and unreliable approaches (Kontio, 1996). The most common evaluation criteria
used to select suppliers are: financial health, expertise, operational performance
metrics, business processes and practices, enabling behaviours or cultural factors
and risk factors (Aiter et al., 2011).
14. eSourcing automates contract lifecycle management (CIPS: Electronic Commerce and
e-Business). Today, eSourcing and eProcurement form the core of the e-Pur-
chasing cycle (BuyIT, 2004). eProcurement is the process through which em-
ployees of the purchasing organisations access supplier online catalogues, select
items, conduct the purchasing process and communicate directly with suppliers
(Leenders et al., 2002). ESourcing, on the other hand, is a broader concept as it
incorporates the key elements of the buying process, such as knowledge, spec-
ification, requests for quotation/tender/e-auction, evaluation/negotiation and
contract (CIPS: Electronic commerce and e-Business).
15.
