CIPS L4M1 - Question & Answer Past exam questions
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1. O1. Outline FIVE 1. Goods are tangible, services are intangible:
differences be- 2. Services cannot be separated from their supplier:
tween purchas- 3. Heterogeneity: goods are usually uniform in nature while services are unique at
ing goods and each delivery
purchasing ser- 4. Services 'perish' immediately on delivery whereas goods can be stored until
vices. required
5. Products are easier to specify, being tangible
2. O2. Explain 1. Urgency
THREE circum- 2. Commercial confidentiality or national security (e.g. military organisations):
stances in which 3. Value of the purchase:
a competitive 4. Production costs cannot be measured accurately:
tendering exer- 5. Price is not the only criterion for supplier selection and contract award
cise might not 6. Intellectual Property Rights and monopoly
be the best ap-
proach to making
a purchase.
3. O2. Describe 1. E-Catalogues
TWO e-sourcing 2. E-Tendering
tools and their 3. E. Auction
use in procure- 4. Reverse Auctions
ment and supply. 5. Online suppleir evaluation data
4. O3. Explain the SSUs reflect a desire to centralise and share services
role of a The shared service provider becomes a dedicated provider of services such as;
shared services finance, HR, IT and procurement which continue to be provided internally
unit (SSU). An SSU manages costs and quality SLAs to demonstrate value for money.
An SSU's benefits may be summarised as:
• cost effective internal service;
• liaison with its customers;
, CIPS L4M1 - Question & Answer Past exam questions
Study online at https://quizlet.com/_jtvzjm
• anticipating future demand;
• employing resources and providing higher levels of service more cost effectively
than if they were provided by a department or an external provider.
5. O3. A manufac- Centralisation' and 'decentralisation' refer to the degree to which responsibility and
turer of elec- authority is delegated. Arguments for centralisation can only be evaluated in the
trically powered context of specific organisational environment and might include:
tools for the
engineering in- 1. Policies & procedures
dustry consists 2. Consolidation of requirements
of four separate 3. Location
business units, 4. Supply market structure
each of which un- 5. Expertise required:
dertakes its own 6. Customer demands
purchasing activi-
ties.
Discuss THREE
benefits of cen-
tralising all pur-
chasing activi-
ties with those
of retaining the
present decen-
tralised struc-
ture. (1 of 2)
6. O3. A manufac- The benefits of retaining the present de-centralised structure include:
turer of elec- 1. Local responsibility
trically powered 2. Knowledge of the local environment, culture and customer needs
tools for the 3. Skills development of buyers in each unit
engineering in- 4. Better communication and coordination between procurement and operating
, CIPS L4M1 - Question & Answer Past exam questions
Study online at https://quizlet.com/_jtvzjm
dustry consists departments,
of four separate 5. Customer focus: buyers are 'closer' to internal and external customers develop-
business units, ing understanding of user needs and problems.
each of which un- 6. Quicker response to operational and user needs,
dertakes its own 7. Smaller purchase quantities:
purchasing activi- 8. Accountability: d
ties. 9. Freeing central procurement units to focus on higher-level, value-adding tasks.
Discuss THREE
benefits of cen-
tralising all pur-
chasing activi-
ties with those
of retaining the
present decen-
tralised struc-
ture. (2 of 2)
7. O3. Explain the ERP is a single data base to manage a wide range of functions and resources across
following IT sys- a business. It offers real time solutions.
tems used by MRP is a set of records, decision rules and procedures to manage demand.
the procurement P2P is a two way flow of transactions taking a purchase requisition through to
or supply chain payment of invoice.
function:
(i) 'Enterprise Re-
source Planning'
(ii) 'Materials Re-
quirement Plan-
ning'
(iii) 'Purchase to
Pay (P2P)'.
Study online at https://quizlet.com/_jtvzjm
1. O1. Outline FIVE 1. Goods are tangible, services are intangible:
differences be- 2. Services cannot be separated from their supplier:
tween purchas- 3. Heterogeneity: goods are usually uniform in nature while services are unique at
ing goods and each delivery
purchasing ser- 4. Services 'perish' immediately on delivery whereas goods can be stored until
vices. required
5. Products are easier to specify, being tangible
2. O2. Explain 1. Urgency
THREE circum- 2. Commercial confidentiality or national security (e.g. military organisations):
stances in which 3. Value of the purchase:
a competitive 4. Production costs cannot be measured accurately:
tendering exer- 5. Price is not the only criterion for supplier selection and contract award
cise might not 6. Intellectual Property Rights and monopoly
be the best ap-
proach to making
a purchase.
3. O2. Describe 1. E-Catalogues
TWO e-sourcing 2. E-Tendering
tools and their 3. E. Auction
use in procure- 4. Reverse Auctions
ment and supply. 5. Online suppleir evaluation data
4. O3. Explain the SSUs reflect a desire to centralise and share services
role of a The shared service provider becomes a dedicated provider of services such as;
shared services finance, HR, IT and procurement which continue to be provided internally
unit (SSU). An SSU manages costs and quality SLAs to demonstrate value for money.
An SSU's benefits may be summarised as:
• cost effective internal service;
• liaison with its customers;
, CIPS L4M1 - Question & Answer Past exam questions
Study online at https://quizlet.com/_jtvzjm
• anticipating future demand;
• employing resources and providing higher levels of service more cost effectively
than if they were provided by a department or an external provider.
5. O3. A manufac- Centralisation' and 'decentralisation' refer to the degree to which responsibility and
turer of elec- authority is delegated. Arguments for centralisation can only be evaluated in the
trically powered context of specific organisational environment and might include:
tools for the
engineering in- 1. Policies & procedures
dustry consists 2. Consolidation of requirements
of four separate 3. Location
business units, 4. Supply market structure
each of which un- 5. Expertise required:
dertakes its own 6. Customer demands
purchasing activi-
ties.
Discuss THREE
benefits of cen-
tralising all pur-
chasing activi-
ties with those
of retaining the
present decen-
tralised struc-
ture. (1 of 2)
6. O3. A manufac- The benefits of retaining the present de-centralised structure include:
turer of elec- 1. Local responsibility
trically powered 2. Knowledge of the local environment, culture and customer needs
tools for the 3. Skills development of buyers in each unit
engineering in- 4. Better communication and coordination between procurement and operating
, CIPS L4M1 - Question & Answer Past exam questions
Study online at https://quizlet.com/_jtvzjm
dustry consists departments,
of four separate 5. Customer focus: buyers are 'closer' to internal and external customers develop-
business units, ing understanding of user needs and problems.
each of which un- 6. Quicker response to operational and user needs,
dertakes its own 7. Smaller purchase quantities:
purchasing activi- 8. Accountability: d
ties. 9. Freeing central procurement units to focus on higher-level, value-adding tasks.
Discuss THREE
benefits of cen-
tralising all pur-
chasing activi-
ties with those
of retaining the
present decen-
tralised struc-
ture. (2 of 2)
7. O3. Explain the ERP is a single data base to manage a wide range of functions and resources across
following IT sys- a business. It offers real time solutions.
tems used by MRP is a set of records, decision rules and procedures to manage demand.
the procurement P2P is a two way flow of transactions taking a purchase requisition through to
or supply chain payment of invoice.
function:
(i) 'Enterprise Re-
source Planning'
(ii) 'Materials Re-
quirement Plan-
ning'
(iii) 'Purchase to
Pay (P2P)'.
