CIPS L4M2 2025/2026 Exam Questions
with 100% Correct Answers | Latest
Update
Re-buy - 🧠 ANSWER ✔✔It is not necessary to specify a new specification
or to source the market. Call-off or framework agreement. A preferred
supplier is in place
Modified Buy - 🧠 ANSWER ✔✔Review of existing contract requirements
and making any necessary amendments such as to build additional
benefits, streamline the business or to establish new KPIs/SLAs. Where
some of the specification or requirements have changed.
New Buy - 🧠 ANSWER ✔✔A new purchase outlines requirements that have
not been specified before. There is a higher risk involved in procuring a
new purchase, demand/supplier/market analysis should be conducted, and
new specific KPIs should be included in the specification.
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619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,Business Needs - 🧠 ANSWER ✔✔The mission of the organisation
determines its requirements and therefore what procurement needs to
source.
R - regulatory (any legal requirements)
A - availability (supply of goods/services when required, risk, financial and
capacity)
Q - quality (consistency, repeatability, and fit for purpose)
S - service requirements (flexibility, support, availability)
C - cost (target costs, total cost of ownership, continuous improvement)
I - innovation (improving customer experience) - 🧠 ANSWER ✔✔A model
that can be used to identify business needs.
Kraljic Matrix - 🧠 ANSWER ✔✔A matrix that allows procurement to prioritise
spend in line with business needs.
Leverage - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by using
purchasing department buying power to gain the best price and terms e.g.
competitive tendering.
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619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,Example of Leverage item (Kraljic Matrix) - 🧠 ANSWER ✔✔Company cars
or mobile phones.
Strategic - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by
developing long term relationships such as partnerships to ensure security
of supply.
Example of Strategic item (Kraljic Matrix) - 🧠 ANSWER ✔✔Capital assets
such as premises
Routine - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by trying to
buy these more efficiently through blanket ordering, e-procurement and
vendor managed inventory leadership in procurement and supply.
Example of Routine item (Kraljic Matrix) - 🧠 ANSWER ✔✔Stationary
Bottleneck - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by
developing appropriate contracts (such as call off contracts, framework
agreements) in which the buyer can ensure that stock levels and
maintained and speed of re-ordering.
Example of Bottleneck item (Kraljic Matrix) - 🧠 ANSWER ✔✔Spare parts or
oil for machines
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619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
, Cost and risk - Kraljic Matric - 🧠 ANSWER ✔✔Low cost / high risk -
Bottleneck
High cost / high risk - Strategic
High cost / low risk - Leverage
Low cost / low risk - Routine
Total cost of ownership - 🧠 ANSWER ✔✔Is how much it costs to own the
product over its lifetime until disposal.
Whole life costing - 🧠 ANSWER ✔✔Is a technique used to arrive at the total
cost of ownership
Planning, preparation and implementation - 🧠 ANSWER ✔✔Three stages of
WLC
WLC - planning - 🧠 ANSWER ✔✔Determines the budget for the asset
being purchased, helps improve the specification to reduce cost, and
simulation or decision support models can be used to assist.
WLC - preparation - 🧠 ANSWER ✔✔Testing the various models for
calculating WLC and is necessary to choose the best model.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
with 100% Correct Answers | Latest
Update
Re-buy - 🧠 ANSWER ✔✔It is not necessary to specify a new specification
or to source the market. Call-off or framework agreement. A preferred
supplier is in place
Modified Buy - 🧠 ANSWER ✔✔Review of existing contract requirements
and making any necessary amendments such as to build additional
benefits, streamline the business or to establish new KPIs/SLAs. Where
some of the specification or requirements have changed.
New Buy - 🧠 ANSWER ✔✔A new purchase outlines requirements that have
not been specified before. There is a higher risk involved in procuring a
new purchase, demand/supplier/market analysis should be conducted, and
new specific KPIs should be included in the specification.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,Business Needs - 🧠 ANSWER ✔✔The mission of the organisation
determines its requirements and therefore what procurement needs to
source.
R - regulatory (any legal requirements)
A - availability (supply of goods/services when required, risk, financial and
capacity)
Q - quality (consistency, repeatability, and fit for purpose)
S - service requirements (flexibility, support, availability)
C - cost (target costs, total cost of ownership, continuous improvement)
I - innovation (improving customer experience) - 🧠 ANSWER ✔✔A model
that can be used to identify business needs.
Kraljic Matrix - 🧠 ANSWER ✔✔A matrix that allows procurement to prioritise
spend in line with business needs.
Leverage - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by using
purchasing department buying power to gain the best price and terms e.g.
competitive tendering.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,Example of Leverage item (Kraljic Matrix) - 🧠 ANSWER ✔✔Company cars
or mobile phones.
Strategic - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by
developing long term relationships such as partnerships to ensure security
of supply.
Example of Strategic item (Kraljic Matrix) - 🧠 ANSWER ✔✔Capital assets
such as premises
Routine - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by trying to
buy these more efficiently through blanket ordering, e-procurement and
vendor managed inventory leadership in procurement and supply.
Example of Routine item (Kraljic Matrix) - 🧠 ANSWER ✔✔Stationary
Bottleneck - Kraljic Matrix - 🧠 ANSWER ✔✔Business needs met by
developing appropriate contracts (such as call off contracts, framework
agreements) in which the buyer can ensure that stock levels and
maintained and speed of re-ordering.
Example of Bottleneck item (Kraljic Matrix) - 🧠 ANSWER ✔✔Spare parts or
oil for machines
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
, Cost and risk - Kraljic Matric - 🧠 ANSWER ✔✔Low cost / high risk -
Bottleneck
High cost / high risk - Strategic
High cost / low risk - Leverage
Low cost / low risk - Routine
Total cost of ownership - 🧠 ANSWER ✔✔Is how much it costs to own the
product over its lifetime until disposal.
Whole life costing - 🧠 ANSWER ✔✔Is a technique used to arrive at the total
cost of ownership
Planning, preparation and implementation - 🧠 ANSWER ✔✔Three stages of
WLC
WLC - planning - 🧠 ANSWER ✔✔Determines the budget for the asset
being purchased, helps improve the specification to reduce cost, and
simulation or decision support models can be used to assist.
WLC - preparation - 🧠 ANSWER ✔✔Testing the various models for
calculating WLC and is necessary to choose the best model.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
