CIPS L4M8 LO2 Exam Questions With Verified Answers

CIPS L4M8 LO2 Exam Questions With Verified Answers what are the stages of ordering? - answer1) user need 2) raise requisition 3) approved process 4) issue PO 5) receive goods/service 6) approve invoice what are the stages of sourcing? - answer1) understand the need 2) develop strategy 3) raise requisition 4) source suppliers 5) issue ITT/RFQ 6) negotiate and award contract 7) SRM/contract management in what locations can sourcing take place? - answer- localised - regional - national - global what factors does the buyer need to consider when deciding which sourcing is best? - answer- urgency of need - volume of need - quality of need - budget allocated to need what are the elements needed for a contract to be legally binding? - answer- intention - capacity - offer - consideration - acceptance what is an invitation to treat? - answeran expression of willingness to negotiate with the intention of forming a contract what is a standard term contract? - answera pre-written contract that leaves little or no room for negotiation on terms between the parties what is force majeure? - answercircumstances that cannot be foreseen which prevent a contract from being fulfilled what elements are included in a standard term contract? - answer- definitions - general terms - commercial provisions - secondary commercial provisions - standard clauses what are the advantages of standard contracts? - answer- saves time - saves money - widely accepted and understood by both buyers and suppliers what are the disadvantages of standard contracts? - answer- bespoke terms may not be included - better terms could be negotiated - buyers do not get experience in creating contracts what are express terms? - answerterms that are agreed between the parties negotiating the contract what is included in express terms? - answer- price - spec - payment terms - warranties - conditions