CIPS L4M2 EXAM | QUESTIONS & 100% CORRECT ANSWERS (VERIFIED) | LATEST UPDATE | GRADEA+

CIPS L4M2 EXAM | QUESTIONS & 100% CORRECT ANSWERS (VERIFIED) | LATEST UPDATE | GRADEA+ Re-buy Correct Answer: It is not necessary to specify a new specification or to source the market. Call-off or framework agreement. A preferred supplier is in place Modified Buy Correct Answer: Review of existing contract requirements and making any necessary amendments such as to build additional benefits, streamline the business or to establish new KPIs/SLAs. Where some of the specification or requirements have changed. New Buy Correct Answer: A new purchase outlines requirements that have not been specified before. There is a higher risk involved in procuring a new purchase, demand/supplier/market analysis should be conducted, and new specific KPIs should be included in the specification. Business Needs Correct Answer: The mission of the organisation determines its requirements and therefore what procurement needs to source. R - regulatory (any legal requirements) A - availability (supply of goods/services when required, risk, financial and capacity) Q - quality (consistency, repeatability, and fit for purpose) S - service requirements (flexibility, support, availability) 2 C - cost (target costs, total cost of ownership, continuous improvement) I - innovation (improving customer experience) Correct Answer: A model that can be used to identify business needs. Kraljic Matrix Correct Answer: A matrix that allows procurement to prioritise spend in line with business needs. Leverage - Kraljic Matrix Correct Answer: Business needs met by using purchasing department buying power to gain the best price and terms e.g. competitive tendering. Example of Leverage item (Kraljic Matrix) Correct Answer: Company cars or mobile phones. Strategic - Kraljic Matrix Correct Answer: Business needs met by developing long term relationships such as partnerships to ensure security of supply. Example of Strategic item (Kraljic Matrix) Correct Answer: Capital assets such as premise