CIPS L4M1 QUESTION AND 100% VERIFIED ANSWERS LATEST
UPDATE ALREADY GRADED A+
LO 1.1 Definition of Procurement, supply chains and networks - (ANSWER)Procurement - Added Value,
Cost, Inventory, Logistics, Purchasing, Quality, Supply, Waste management.
Supply Chains - encompass all organizations and activities associated with the flow of goods from
material stage to end user.
Primary - oil drilling -> Secondary - Refining -> Teritiary - Services (healthcare).
Supply chain network (SCN) - Involves all other parties involved in the supply process. Supplier ->
manufacturer -> carrying/forwarding agent -> distributor -> wholesaler.
REMEMBER: Goods flow 1 way. Info flows 2 ways.
Value in supply chain - (ANSWER)Price, Delivery, Storage, Ethics, Environment, Sustainability,
Communication, Quality
Supply chain tiering - (ANSWER)Allows concentrated development of small number of suppliers, fewer
suppliers to manage = resources allocated elsewhere.
Disadvantage - more susceptible for risk factors as less control over tier 2 suppliers and above
Fleet management - (ANSWER)Businesses can manage their own fleet for transport and distribution or
can outsource this responsibility to a contractor to maintain and add value. Think of enterprise at work.
Waste management - (ANSWER)Strategies to reduce, recycle and prevent waste as well as dispose.
Designed to protect and preserve human health and environment, rivers, air.
Closed loop recycling - (ANSWER)Recycled waste can be reprocessed/repurposed indefinitely.
plastic, aluminium and glass.
minimises environmental effect, reduced landfill space sustainability
, CIPS L4M1 QUESTION AND 100% VERIFIED ANSWERS LATEST
UPDATE ALREADY GRADED A+
Added value - 5 rights of procurement - (ANSWER)Quality, Quantity, Price, Place, Time
PPQQT
REMEMBER: ISO certs
Added value - (ANSWER)Sourcing - suitable suppliers can provide necessary material or service.
Price comparisons - RFQs to benchmark prices and standardise/ normalise offers to easily compare.
Remember - currency if supplier is abroad, net or gross price on quotes.
Negotiations - payment terms, inclusions in price = payment terms, warranty, discounts, carriage costs
and certs.
think ZFR4 and Zdoc
incoterms - shipping and delivery methods that are most advantageous to the business
LO2 total cost/ whole life asset management - (ANSWER)Total cost of acquisition - All activities and costs
associated with procurement but not operating costs.
Total cost of ownership - All costs associated with planning, tendering, procurement and disposal of
asset or service.
Life cycle costing - associated with site clearance, construction and operating of capital equipment not
including disposal of building and end of life.
Whole life costing - all elements of life cycle costing - financing of project, aquisition of land, disposal at
start of project.
5 stages of WLC - (ANSWER)Cost of planning, cost of aquiring, financing, operating, disposing
UPDATE ALREADY GRADED A+
LO 1.1 Definition of Procurement, supply chains and networks - (ANSWER)Procurement - Added Value,
Cost, Inventory, Logistics, Purchasing, Quality, Supply, Waste management.
Supply Chains - encompass all organizations and activities associated with the flow of goods from
material stage to end user.
Primary - oil drilling -> Secondary - Refining -> Teritiary - Services (healthcare).
Supply chain network (SCN) - Involves all other parties involved in the supply process. Supplier ->
manufacturer -> carrying/forwarding agent -> distributor -> wholesaler.
REMEMBER: Goods flow 1 way. Info flows 2 ways.
Value in supply chain - (ANSWER)Price, Delivery, Storage, Ethics, Environment, Sustainability,
Communication, Quality
Supply chain tiering - (ANSWER)Allows concentrated development of small number of suppliers, fewer
suppliers to manage = resources allocated elsewhere.
Disadvantage - more susceptible for risk factors as less control over tier 2 suppliers and above
Fleet management - (ANSWER)Businesses can manage their own fleet for transport and distribution or
can outsource this responsibility to a contractor to maintain and add value. Think of enterprise at work.
Waste management - (ANSWER)Strategies to reduce, recycle and prevent waste as well as dispose.
Designed to protect and preserve human health and environment, rivers, air.
Closed loop recycling - (ANSWER)Recycled waste can be reprocessed/repurposed indefinitely.
plastic, aluminium and glass.
minimises environmental effect, reduced landfill space sustainability
, CIPS L4M1 QUESTION AND 100% VERIFIED ANSWERS LATEST
UPDATE ALREADY GRADED A+
Added value - 5 rights of procurement - (ANSWER)Quality, Quantity, Price, Place, Time
PPQQT
REMEMBER: ISO certs
Added value - (ANSWER)Sourcing - suitable suppliers can provide necessary material or service.
Price comparisons - RFQs to benchmark prices and standardise/ normalise offers to easily compare.
Remember - currency if supplier is abroad, net or gross price on quotes.
Negotiations - payment terms, inclusions in price = payment terms, warranty, discounts, carriage costs
and certs.
think ZFR4 and Zdoc
incoterms - shipping and delivery methods that are most advantageous to the business
LO2 total cost/ whole life asset management - (ANSWER)Total cost of acquisition - All activities and costs
associated with procurement but not operating costs.
Total cost of ownership - All costs associated with planning, tendering, procurement and disposal of
asset or service.
Life cycle costing - associated with site clearance, construction and operating of capital equipment not
including disposal of building and end of life.
Whole life costing - all elements of life cycle costing - financing of project, aquisition of land, disposal at
start of project.
5 stages of WLC - (ANSWER)Cost of planning, cost of aquiring, financing, operating, disposing
