CIPS L4M8 Procurement and Supply in
Practice 2026 Exam Guide
1. Stage 13: As- The procurement professional should evaluate whether the need is still current. If
sest manage- it is and unchanged, the procurement cycle process commences again but from
ment/end of life a ditterent stage as the need is already known and understood. If the need is not
required the buyer should manage the end of life by reducing stock levels and
informing the supplier
2. Anti-bribery pro- -Proportionate procedures: should be in line with the ype of bribery risk and scale
cedures that is likely to be faced
-Top level commitment: High level execs should set an example and issue state-
ments, updates and feedback on the procedures and expectations
-Risk assessment: Regular and documented risk assessment of the likelihood and
impact of bribery
-Due diligence: Documented procedures should cover and be enforced by all of
the organisation within the supply chain
-Communication: Ongoing training and updates should be provided to keep the
organisation and its workforce aware of current developments
-Monitoring and reviewing: Methods should be implemented to review compli-
ance with the policies and procedures
3. Busisness case -Introduction
for whole life as- -Objective
set management -Approach
-Resources
-Benefits
4. Procurement Cy- the cyclical process of key steps when procuring goods or services.
cle
, CIPS L4M8 Procurement and Supply in
Practice 2026 Exam Guide
5. Steps of the Pro- 1. Understand Need and develop High level Spec.
curement Cycle 2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
6. Terms and Condi- are a very important element of developing contracts, helping to minimise con-
tions and the De- tractual risks and exposure when doing business.
veloping of Con-
tracts
7. Supplier Evalua- the process of evaluating and approving existing and potential suppliers by
tion quantitative assessment against specific business criteria.
8. Sourcing a critical activity that commands increasing attention as managing supply chains
becomes more complex (Trautmann et al., 2009). It is used at both tactical and
strategic levels and is concerned with what needs to be purchased (product/ser-
vice), in what quantities, for what purpose and where.
9. Whole life cycle takes into account the total cost of a product or service over its lifetime, from
costing concept through to disposal including purchase, hire or lease, maintenance,
operation, utilities, training and disposal. It is important for procurement to take
all these elements into consideration when making decisions and comparing
, the costs of buying, renting or leasing equipment particularly. In most cases the
purchase costs are only a small proportion of the cost of operating it.
10. Corporate So- a way of ensuring that the business monitors its compliance with the law and
cial Responsibili- industry standards. It embraces the company's obligations and creates a positive
ty (CSR) impact through its activities and in some cases relates to a company going beyond
its obligations in terms of its ettect on the environment and impact on social
welfare.
11. Diversity and In- Businesses not only have a responsibility to respect and value all forms of ditter-
clusion ence including race and ethnicity, culture and belief, gender and sexuality, age
and social status and ability. There is also a huge business advantage to be had:
diverse teams are more innovative, but also people want to be part of them and
stay part of them.
12. Modern Slavery possession or control of a person deprived of their rights with the intention of
exploiting them
13. Sustainable and consider the impact of environmental, economic and social factors along with
Ethical Procure- price and quality. This is important in terms of how the buyer conducts their rela-
ment tionship with suppliers, including contract negotiation especially when sourcing
globally with unfamiliar work cultures.
14. Supplier Diversi- A proactive business program which encourages the use of minority-owned,
ty women owned, veteran owned, LGBT-owned [1], service disabled veteran owned,
historically underutilized business, and Small Business Administration (SBA)-de-
fined small business concerns as suppliers.
, 15. Social Value a way of thinking about how scarce resources are allocated and used. It involves
looking beyond the price of each individual contract and looking at what the
collective benefit to a community is, when a public body chooses to award a
contract.
16. implied terms always present in a contract and are set by the law of the land.
17. Express terms are written into the contract. They usually relate to items that can be negotiated
and agreed between the parties involved. Examples include payment terms, the
specification, delivery details, quantities, and indemnity clauses, etc.
18. Model Form Con- are a templated contract comprising of standardised and non-negotiated terms
tracts and conditions. Can be used to reduce the time required to negotiate specific
terms for each agreement.
19. Conditions are fundamentally at the heart of the contract. If they arebreached, they give the
injured party the full range of remedies,including the right to terminate.
20. Warranties are minor terms. If there is a breach, the injured party still have the right to claim
compensation but might not be able to take any other form of redress.
21. Liquidated Dam- are fixed amounts of money agreed between the parties that becomes payable
ages upon a breach of contract. They are enforceable by law.
22. Unliquidated are an unspecified amount of money. And are used when the amount of money
damages that will compensate the aggrieved party is unable to be predetermined.
23. Exclusion clause are used in contracts in order to try and totally exclude the amount of liability
which would otherwise arise from some breach of contract.
24. Indemnity Clause are designed to secure an undertaking from the other party that it will accept
liability and risk for any loss arising from events in carrying out the contract, and
will make good the loss to the injured party or parties.
Practice 2026 Exam Guide
1. Stage 13: As- The procurement professional should evaluate whether the need is still current. If
sest manage- it is and unchanged, the procurement cycle process commences again but from
ment/end of life a ditterent stage as the need is already known and understood. If the need is not
required the buyer should manage the end of life by reducing stock levels and
informing the supplier
2. Anti-bribery pro- -Proportionate procedures: should be in line with the ype of bribery risk and scale
cedures that is likely to be faced
-Top level commitment: High level execs should set an example and issue state-
ments, updates and feedback on the procedures and expectations
-Risk assessment: Regular and documented risk assessment of the likelihood and
impact of bribery
-Due diligence: Documented procedures should cover and be enforced by all of
the organisation within the supply chain
-Communication: Ongoing training and updates should be provided to keep the
organisation and its workforce aware of current developments
-Monitoring and reviewing: Methods should be implemented to review compli-
ance with the policies and procedures
3. Busisness case -Introduction
for whole life as- -Objective
set management -Approach
-Resources
-Benefits
4. Procurement Cy- the cyclical process of key steps when procuring goods or services.
cle
, CIPS L4M8 Procurement and Supply in
Practice 2026 Exam Guide
5. Steps of the Pro- 1. Understand Need and develop High level Spec.
curement Cycle 2. Market/Commodity and options (inc make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
6. Terms and Condi- are a very important element of developing contracts, helping to minimise con-
tions and the De- tractual risks and exposure when doing business.
veloping of Con-
tracts
7. Supplier Evalua- the process of evaluating and approving existing and potential suppliers by
tion quantitative assessment against specific business criteria.
8. Sourcing a critical activity that commands increasing attention as managing supply chains
becomes more complex (Trautmann et al., 2009). It is used at both tactical and
strategic levels and is concerned with what needs to be purchased (product/ser-
vice), in what quantities, for what purpose and where.
9. Whole life cycle takes into account the total cost of a product or service over its lifetime, from
costing concept through to disposal including purchase, hire or lease, maintenance,
operation, utilities, training and disposal. It is important for procurement to take
all these elements into consideration when making decisions and comparing
, the costs of buying, renting or leasing equipment particularly. In most cases the
purchase costs are only a small proportion of the cost of operating it.
10. Corporate So- a way of ensuring that the business monitors its compliance with the law and
cial Responsibili- industry standards. It embraces the company's obligations and creates a positive
ty (CSR) impact through its activities and in some cases relates to a company going beyond
its obligations in terms of its ettect on the environment and impact on social
welfare.
11. Diversity and In- Businesses not only have a responsibility to respect and value all forms of ditter-
clusion ence including race and ethnicity, culture and belief, gender and sexuality, age
and social status and ability. There is also a huge business advantage to be had:
diverse teams are more innovative, but also people want to be part of them and
stay part of them.
12. Modern Slavery possession or control of a person deprived of their rights with the intention of
exploiting them
13. Sustainable and consider the impact of environmental, economic and social factors along with
Ethical Procure- price and quality. This is important in terms of how the buyer conducts their rela-
ment tionship with suppliers, including contract negotiation especially when sourcing
globally with unfamiliar work cultures.
14. Supplier Diversi- A proactive business program which encourages the use of minority-owned,
ty women owned, veteran owned, LGBT-owned [1], service disabled veteran owned,
historically underutilized business, and Small Business Administration (SBA)-de-
fined small business concerns as suppliers.
, 15. Social Value a way of thinking about how scarce resources are allocated and used. It involves
looking beyond the price of each individual contract and looking at what the
collective benefit to a community is, when a public body chooses to award a
contract.
16. implied terms always present in a contract and are set by the law of the land.
17. Express terms are written into the contract. They usually relate to items that can be negotiated
and agreed between the parties involved. Examples include payment terms, the
specification, delivery details, quantities, and indemnity clauses, etc.
18. Model Form Con- are a templated contract comprising of standardised and non-negotiated terms
tracts and conditions. Can be used to reduce the time required to negotiate specific
terms for each agreement.
19. Conditions are fundamentally at the heart of the contract. If they arebreached, they give the
injured party the full range of remedies,including the right to terminate.
20. Warranties are minor terms. If there is a breach, the injured party still have the right to claim
compensation but might not be able to take any other form of redress.
21. Liquidated Dam- are fixed amounts of money agreed between the parties that becomes payable
ages upon a breach of contract. They are enforceable by law.
22. Unliquidated are an unspecified amount of money. And are used when the amount of money
damages that will compensate the aggrieved party is unable to be predetermined.
23. Exclusion clause are used in contracts in order to try and totally exclude the amount of liability
which would otherwise arise from some breach of contract.
24. Indemnity Clause are designed to secure an undertaking from the other party that it will accept
liability and risk for any loss arising from events in carrying out the contract, and
will make good the loss to the injured party or parties.
