CIPS L4M2 Defining Business Need Questions
and Answers 2026 Guide
1. Types of Purchases new buy, straight rebuy, modified rebuy
2. Straight rebuy purchase Routine purchases of the same products under approximately the
same terms of sale
3. Modified rebuy purchase When new-task purchases are changed on repeat orders or
straight rebuy purchases are modified
4. New purchase A purchase of an item for the first time
5. Examples of straight rebuy Utilities (gas, water, electricity)
purchases MRO ( Maintenance, repair and operating items)
Raw materials (steel, chemicals)
6. Examples of modified rebuy Services (Consulting)
purchases Components or semifinished products
ICT
7. Examples of New purchases Capital Items
Finished products
Products from resales
8. Task in a new purchasing Understand the business requirement
Writing and ettective communication
Researching the supply market
Researching key suppliers in that market
Deciding on the key capabilities that suppliers must have
Writing invitation to tender documentation
Managing the tender process
Negotiating
Selecting the supplier.
9. straight re-buy decision
, CIPS L4M2 Defining Business Need Questions
and Answers 2026 Guide
A purchase decision resulting from an ongoing purchasing rela-
tionship with a supplier
10. modified rebuy decision a purchase decision that occurs when a buyer has experience
in purchasing a product in the past but is interested in acquir-
ing additional information regarding alternative products and/or
suppliers
11. new purchase decision A purchase decision that made when the buyer identifies a new
requirement. (New Product, technology change, changes in the
legislation to otter a new service)
12. Private sector Mission and Supply the needs and improve the enduser lives maximizing the
Purpose profits and provide a financial return to its share holders.
13. Public sector Mission and Provide services not available by non profit organization.
Purpose
14. Terms of RAQSCI Model Regulatory
Availability
Quality
Service requirement
Cost
Innovation
15. RAQSCI Regulatory Covers any legal requirements or requirements of regulatory
bodies
16. RAQSCI Abailability Covers the continuing supply of goods and services when re-
quired and is based on factors , such as capacity , financial
stability and risk.
17. RAQSCI Quality this is the consistency, repeatability and how fit for propose the
procured goods and services are
, CIPS L4M2 Defining Business Need Questions
and Answers 2026 Guide
18. RAQSCI Service require- are factors associated with the way services are supplied for
ments example flexibility, support and help desk.
19. RAQSCI Cost Cost and price: target cost, total cost of ownership, benchmarked
prices, continues improvements.
20. RAQSCI Innovation improvement customer experience
21. Use of RAQSCI Model Identified business requirements
22. Business requirements Collect Information
things to consider categorize potencial stakeholders
Identify individuals who contribute to the acquisition
On completion analisys
23. Straight rebuy steps List of approved suppliers
New suppliers are not considered
the process for ordering is a procurement approved and routine
Buyers experience
24. Why is the capability of a Provide special skills
supplier important to a a World-class processes
buyer? Qualification from regulatory bodies (ISO)
Leading edge software
Specific capital equipment
Uniq or dominate access to rare resources (including human
skills)
25. Reasons to prepare a busi- A contract is coming to an end and the product or service need
ness case to be procured again.
Cost reduction need to be made and this requires changes to the
way that the organization operates.
and Answers 2026 Guide
1. Types of Purchases new buy, straight rebuy, modified rebuy
2. Straight rebuy purchase Routine purchases of the same products under approximately the
same terms of sale
3. Modified rebuy purchase When new-task purchases are changed on repeat orders or
straight rebuy purchases are modified
4. New purchase A purchase of an item for the first time
5. Examples of straight rebuy Utilities (gas, water, electricity)
purchases MRO ( Maintenance, repair and operating items)
Raw materials (steel, chemicals)
6. Examples of modified rebuy Services (Consulting)
purchases Components or semifinished products
ICT
7. Examples of New purchases Capital Items
Finished products
Products from resales
8. Task in a new purchasing Understand the business requirement
Writing and ettective communication
Researching the supply market
Researching key suppliers in that market
Deciding on the key capabilities that suppliers must have
Writing invitation to tender documentation
Managing the tender process
Negotiating
Selecting the supplier.
9. straight re-buy decision
, CIPS L4M2 Defining Business Need Questions
and Answers 2026 Guide
A purchase decision resulting from an ongoing purchasing rela-
tionship with a supplier
10. modified rebuy decision a purchase decision that occurs when a buyer has experience
in purchasing a product in the past but is interested in acquir-
ing additional information regarding alternative products and/or
suppliers
11. new purchase decision A purchase decision that made when the buyer identifies a new
requirement. (New Product, technology change, changes in the
legislation to otter a new service)
12. Private sector Mission and Supply the needs and improve the enduser lives maximizing the
Purpose profits and provide a financial return to its share holders.
13. Public sector Mission and Provide services not available by non profit organization.
Purpose
14. Terms of RAQSCI Model Regulatory
Availability
Quality
Service requirement
Cost
Innovation
15. RAQSCI Regulatory Covers any legal requirements or requirements of regulatory
bodies
16. RAQSCI Abailability Covers the continuing supply of goods and services when re-
quired and is based on factors , such as capacity , financial
stability and risk.
17. RAQSCI Quality this is the consistency, repeatability and how fit for propose the
procured goods and services are
, CIPS L4M2 Defining Business Need Questions
and Answers 2026 Guide
18. RAQSCI Service require- are factors associated with the way services are supplied for
ments example flexibility, support and help desk.
19. RAQSCI Cost Cost and price: target cost, total cost of ownership, benchmarked
prices, continues improvements.
20. RAQSCI Innovation improvement customer experience
21. Use of RAQSCI Model Identified business requirements
22. Business requirements Collect Information
things to consider categorize potencial stakeholders
Identify individuals who contribute to the acquisition
On completion analisys
23. Straight rebuy steps List of approved suppliers
New suppliers are not considered
the process for ordering is a procurement approved and routine
Buyers experience
24. Why is the capability of a Provide special skills
supplier important to a a World-class processes
buyer? Qualification from regulatory bodies (ISO)
Leading edge software
Specific capital equipment
Uniq or dominate access to rare resources (including human
skills)
25. Reasons to prepare a busi- A contract is coming to an end and the product or service need
ness case to be procured again.
Cost reduction need to be made and this requires changes to the
way that the organization operates.
