CIPS Module 8 level 4 Questions and
Correct Answers
Question 1
key limitations of using a structured procurement approach
Correct Answer
- takes time particularly if relying on other departments or stakeholders for
information, or their input.
- the cost of the business of fulfilling these activities
- the fluid nature of the markets. This includes changes to macro environmental
factors that can impact on the Procurement Cycle stages
- stakeholders who might impact on the successful completion of the stages and
how will you secure their buy-in.
- inherent challenges of identifying and managing supply risk
- If the Procurement function is seen as a support function, rather than strategic, in
an organisation, it might be difficult to secure buy-in from other departments
- recruiting and retaining the necessary skills
- lack of integration between departments that manage the different stages can
cause delays or other issues
- Stakeholders might consider the risks associated with alternate sourcing decisions
differently
- value can be difficult to qualify, and may take a long time to realise.
Question 2
Things to consider in stage 1 (Define business needs and develop specification)
Correct Answer
- The organisation's values and sustainability goals, including the Environmental,
Social, and Governance (ESG) criteria
- The organisation's ethical drivers and any regulatory requirements
- Upholding any obligations and protecting the organisation's reputation
- Early stakeholder engagement
-
Page 1 of 13
, Question 3
What does STEEPLED stand for?
Correct Answer
Social
Technological
Economic
Environmental
Political
Legal
Ethical
Demographic
Question 4
Factors that can impact the procurement cycle - Capacity and Capability of
Resources
Correct Answer
The capacity and capability of the resources in your organisation might also impact
on the structure of your procurement cycle. For example, a smaller-sized
organisation might merge some of the stages and complete some of the
procurement processes together.
The cycle might also differ between different products and services and their
respective markets. For example, if procuring an item from a monopoly market, you
might spend less time analysing the market at stage 2 than if the market is perfectly
competitive, as you've many more potential suppliers available.
Question 5
What does direct mean in terms of procurement?
Correct Answer
Question 6
How would you define business needs?
Correct Answer
Something that is required for an individual or an organisation to be able to carry
out an objective
Page 2 of 13
Correct Answers
Question 1
key limitations of using a structured procurement approach
Correct Answer
- takes time particularly if relying on other departments or stakeholders for
information, or their input.
- the cost of the business of fulfilling these activities
- the fluid nature of the markets. This includes changes to macro environmental
factors that can impact on the Procurement Cycle stages
- stakeholders who might impact on the successful completion of the stages and
how will you secure their buy-in.
- inherent challenges of identifying and managing supply risk
- If the Procurement function is seen as a support function, rather than strategic, in
an organisation, it might be difficult to secure buy-in from other departments
- recruiting and retaining the necessary skills
- lack of integration between departments that manage the different stages can
cause delays or other issues
- Stakeholders might consider the risks associated with alternate sourcing decisions
differently
- value can be difficult to qualify, and may take a long time to realise.
Question 2
Things to consider in stage 1 (Define business needs and develop specification)
Correct Answer
- The organisation's values and sustainability goals, including the Environmental,
Social, and Governance (ESG) criteria
- The organisation's ethical drivers and any regulatory requirements
- Upholding any obligations and protecting the organisation's reputation
- Early stakeholder engagement
-
Page 1 of 13
, Question 3
What does STEEPLED stand for?
Correct Answer
Social
Technological
Economic
Environmental
Political
Legal
Ethical
Demographic
Question 4
Factors that can impact the procurement cycle - Capacity and Capability of
Resources
Correct Answer
The capacity and capability of the resources in your organisation might also impact
on the structure of your procurement cycle. For example, a smaller-sized
organisation might merge some of the stages and complete some of the
procurement processes together.
The cycle might also differ between different products and services and their
respective markets. For example, if procuring an item from a monopoly market, you
might spend less time analysing the market at stage 2 than if the market is perfectly
competitive, as you've many more potential suppliers available.
Question 5
What does direct mean in terms of procurement?
Correct Answer
Question 6
How would you define business needs?
Correct Answer
Something that is required for an individual or an organisation to be able to carry
out an objective
Page 2 of 13
