CIPS L4M8 questions with complete solutions 2023

CIPS L4M8 questions with complete solutions 2023Stage 13: Assest management/end of life The procurement professional should evaluate whether the need is still current. If it is and unchanged, the procurement cycle process commences again but from a different 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 Anti-bribery procedures -Proportionate procedures: should be in line with the ype of bribery risk and scale that is likely to be faced -Top level commitment: High level execs should set an example and issue statements, 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 compliance with the policies and procedures Busisness case for whole life asset management -Introduction -Objective -Approach -Resources -Benefits Procurement Cycle the cyclical process of key steps when procuring goods or services. Steps of the Procurement Cycle 1. Understand Need and develop High level Spec. 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. Terms and Conditions and the Developing of Contracts are a very important element of developing contracts, helping to minimise contractual risks and exposure when doing business. Supplier Evaluation the process of evaluating and approving existing and potential suppliers by quantitative assessment against specific business criteria. 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/service), in what quantities, for what purpose and where. Whole life cycle costing takes into account the total cost of a product or service over its lifetime, from 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. Corporate Social Responsibility (CSR) a way of ensuring that the business monitors its compliance with the law and industry standards. It embraces the company's obligations and creates a positive impact through its activities and in some cases relates to a company going beyond its obligations in terms of its effect on the environment and impact on social welfare. Diversity and Inclusion Businesses not only have a responsibility to respect and value all forms of difference 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. Modern Slavery possession or control of a person deprived of their rights with the intention of exploiting them Sustainable and Ethical Procurement consider the impact of environmental, economic and social factors along with price and quality. This is important in terms of how the buyer conducts their relationship with suppliers, including contract negotiation especially when sourcing globally with unfamiliar work cultures. Supplier Diversity A proactive business program which encourages the use of minority-owned, women owned, veteran owned, LGBT-owned [1], service disabled veteran owned, historically underutilized business, and Small Business Administration (SBA)-defined small business concerns as suppliers. 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. implied terms always present in a contract and are set by the law of the land. 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. Model Form Contracts are a templated contract comprising of standardised and non-negotiated terms and conditions. Can be used to reduce the time required to negotiate specific terms for each agreement. 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. 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. Liquidated Damages are fixed amounts of money agreed between the parties that becomes payable upon a breach of contract. They are enforceable by law. Unliquidated damages are an unspecified amount of money. And are used when the amount of money that will compensate the aggrieved party is unable to be predetermined. 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. 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. Weighted Scorecard This is a tool that provides a systematic and fair process for selecting suppliers based on predetermined criteria. Whole life asset management relates to fixed assets. It is the process of evaluating the total price and all other costs associated with the item so an informed decision can be made about which option will provide the best value for money for the organization. Fixed Assets assets that are relatively permanent, such as land, buildings, and equipment 1st stage of whole-life cycle asset management identify the need, objectives and risk. For example, objectives could include being more energy efficient, reducing cost or keeping up with the competition. Current Assets Assets that companies expect to convert to cash or use up within one year or the operating cycle, whichever is longer. 2nd stage of whole-life cycle asset management procurement. The procurement team should consider all the elements within the whole-life asset management cycle in their process to be sure that the best value is gained.