L4M8 CIPS questions with correct answers graded A+ 2024 passed

L4M8 CIPS questions with correct answers graded A+ 2024 passedABC Analysis - correct answer A technique used to categories suppliers into three groups of decreasing value. A Group - 10-15% of your suppliers, but 80% of the spend. B Group - represent 20-25% of your suppliers, but only 15% spend. C Group - Represent 60-70% of your suppliers, but only 5% of the spend. Breakers - correct answer A company that buys decommissioned machinery and strips it of useful parts to then sell on. Business Case - correct answer A document containing the justification and the commercial benefits achievable for a potential project. Corporate Social Responsibility CSR - correct answer A business approach that contributes to sustainable development by delivering social, environmental and economic benefits for all stakeholders. The CSR policy may cover fundraising for charity, ethical behaviour, social and environmental policies. Deprecation - correct answer The reduction of value of a tangible and fixed asset over time ESI - Early Supplier Involvement - correct answer Working with suppliers at the start of projects to use their experience, knowledge and expertise. Tangible & Intangible - correct answer Tangible is something physical, that you can touch. Intangible is a service, insurance etc. Incoterms - correct answer Internationally approved terms that state how goods are transported from one party to another and when the title/risk is passed on. ISO4001 & ISO9001 - correct answer A document describing the requirements an organisation to fulfil to meet the ISO 9000 Standards JIT (just in time) - correct answer This usually applies to manufacturing, based on the suppliers delivering goods at the point that they are needed. Aiming to reduce inventory costs and reduce waste in the supply chain. Direct/Indirect Needs - correct answer Direct need is a need that direct is for production, such as raw materials, consumables etc. Indirect need are things like marketing materials, overheads etc. 13 Stages of The Procurement Cycle - correct answer Stage 1 - Understand need and develop spec Stage 2 - Market/commodity options inc. Make vs Buy Stage 3 - Develop plan Stage 4 - Pre-procurement market tests and market engagement Stage 5 - Development of documentation e.g. tender, R.F.Q. Stage 6 - Selection for the invitation to tender Stage 7 - Issue invitation to tender/RFQ Stage 8 - Bid/Tender/Quotation evaluation and validation Stage 9 - Contract award and implementation Stage 10 - Warehouse logistics and receipt Stage 11 - Contract performance review and continuous improvement Stage 12 - Suppliers relationship management Stage 13 - Asset Management/End of Life Performance Spec & Advantages/Disadvantages - correct answer Specifies what the product will achieve. Leaves open for supplier innovation, promotes competition, the risk lies with the supplier, quicker to prepare, uses supplier knowledge. Conformance Spec & Advantages/Disadvantages - correct answer Specifies which standards a requirement must meet or exceed. No supplier freedom, reduces competition, the buyer bears the risk, buyer knows exactly what they're getting, longer & complex document, more time consuming to prepare, disregards supplier expertise.