CIPS Level 4 Module 1 - Question & Answer Past exam questions Study Questions and Answers 100% || Graded A, Latest (2024) || Certified!!!

The Purchasing process - 1. Define Specification. 2. Select Supplier 3. Contract Agreement 4. Ordering 5. Expediting 6. Evaluation Follow up Definition of Procurement & Supply - recognition of the fact that the purchasing function has a role in not just "buying inputs" but in "securing supply" Direct Costs - These are costs which can be identified directly with the production of a good or service; e.g. raw materials. Usually strategic or leverae suppliers Indirect Costs - These are costs which cannot be matched against each product because they need to be paid whether or not the production of good or services takes place; e.g. rent on the premises. Kraljic Matrix - A tool for portfolio analysis: a four-box matrix that reflects the segmentation of spend base