CIPS L4M8 LO2 with 100% correct answers 2024/2025

CIPS L4M8 LO2 what are the stages of ordering? - correct answer 1) user need 2) raise requisition 3) approved process 4) issue PO 5) receive goods/service 6) approve invoice what are the stages of sourcing? - correct answer 1) understand the need 2) develop strategy 3) raise requisition 4) source suppliers 5) issue ITT/RFQ 6) negotiate and award contract 7) SRM/contract management in what locations can sourcing take place? - correct answer - localised - regional - national - global what factors does the buyer need to consider when deciding which sourcing is best? - correct answer - urgency of need - volume of need - quality of need - budget allocated to need what are the elements needed for a contract to be legally binding? - correct answer - intention - capacity - offer - consideration - acceptance what is an invitation to treat? - correct answer an expression of willingness to negotiate with the intention of forming a contract what is a standard term contract? - correct answer a pre-written contract that leaves little or no room for negotiation on terms between the parties what is force majeure? - correct answer circumstances that cannot be foreseen which prevent a contract from being fulfilled what elements are included in a standard term contract? - correct answer - definitions - general terms - commercial provisions - secondary commercial provisions - standard clauses what are the advantages of standard contracts? - correct answer - saves time - saves money - widely accepted and understood by both buyers and suppliers what are the disadvantages of standard contracts? - correct answer - bespoke terms may not be included - better terms could be negotiated - buyers do not get experience in creating contracts what are express terms? - correct answer terms that are agreed between the parties negotiating the contract what is included in express terms? - correct answer - price - spec - payment terms - warranties - conditions - retention of title - damages - exclusion clauses - indemnity clauses - breaches - termination - conflict resolution what factors can affect price? - correct answer - profit levels of the supplier - budget of the buyer - currency fluctuations - economic market - quality - volume - supply and demand - material availability - skill of the workforce - immediacy of the requirement what tactics can a buyer use to create the ideal terms for their organisation? - correct answer - take it or leave it