CIPS L4M8 Chapter 1 2025/2026 Exam
Questions and Answers | A+ Score
Assured
The 13 Stages of the Procurement Cycle - 🧠 ANSWER ✔✔Stage 1 -
Identify need and develop spec.
Stage 2 - Market commodity/make or buy options.
Stage 3 - Develop Strategy/Plan
Stage 4 - Pre procurement market tests
Stage 5 - Prepare Documentation
Stage 6 - Supplier Selection
Stage 7 - Send ITT
Stage 8 - Receive & Evaluate Bids
Stage 9 - Award contract
Stage 10 - Warehouse/logistics prep
Stage 11 - Contract management
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,Stage 12 - Relationship management
Stage 13 - End of life/asset management
Procurement Cycle - Stage 1 - Understand need and develop a high-level
specification - 🧠 ANSWER ✔✔The person generating the need should
communicate with the buyer to ensure there is no misinterpretation. Once
the need is clearly understood, the procurement professional should
develop a specification
Two types of specification - 🧠 ANSWER ✔✔Performance and conformance
Performance specifications - 🧠 ANSWER ✔✔Specifies what the product or
service will do or achieve. This covers the outputs required, tolerances and
any functions the product/service may have to perform
Conformance specifications (technical) - 🧠 ANSWER ✔✔Specifies which
standards a requirement must meet or exceed
Characteristics of Performance specifications - 🧠 ANSWER ✔✔- Allow
supplier innovation
- Promote competition in the marketplace
- The supplier bears the risk
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619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,- Buyer may not know exactly what they will be getting
- Shorter document
- Quicker to prepare
- Takes advantage of supplier expertise
Characteristics of Conformance specifications (technical) - 🧠 ANSWER
✔✔- No supplier innovation
- Reduce competition
- The buyer bears the risk
- Buyer knows exactly what they are getting
- Longer, complex document
- More time consuming to prepare
- Disregards supplier expertise
Procurement Cycle - Stage 2 - Market commodity/make or buy options - 🧠
ANSWER ✔✔Once specification has been developed, the procurement
professional is aware of what is required, why and when. The options to
consider include the budget available to spend on the procurement, the
number of suppliers available and whether to make or buy
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
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, To fully understand the market pricing, procurement professionals should
research the level of competition. The .... .... ... model is an established way
of assessing the competition - 🧠 ANSWER ✔✔Porter's Five Forces
Porter's Five Forces Model - 🧠 ANSWER ✔✔- Threat of new entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Rivalry among existing Competitors
Core Competencies - 🧠 ANSWER ✔✔The processes that are critical to an
organisation achieving success and competitive advantage
Make or buy decisions are about - 🧠 ANSWER ✔✔whether a product or
service should be made within the organisation or bought-in from an
external supplier
A procurement professional can use Carter's Outsource Matrix when - 🧠
ANSWER ✔✔deciding whether to make or buy
The four quadrants of Carter's Outsource Matrix - 🧠 ANSWER ✔✔-
Strategic Alliance
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
Questions and Answers | A+ Score
Assured
The 13 Stages of the Procurement Cycle - 🧠 ANSWER ✔✔Stage 1 -
Identify need and develop spec.
Stage 2 - Market commodity/make or buy options.
Stage 3 - Develop Strategy/Plan
Stage 4 - Pre procurement market tests
Stage 5 - Prepare Documentation
Stage 6 - Supplier Selection
Stage 7 - Send ITT
Stage 8 - Receive & Evaluate Bids
Stage 9 - Award contract
Stage 10 - Warehouse/logistics prep
Stage 11 - Contract management
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 1
,Stage 12 - Relationship management
Stage 13 - End of life/asset management
Procurement Cycle - Stage 1 - Understand need and develop a high-level
specification - 🧠 ANSWER ✔✔The person generating the need should
communicate with the buyer to ensure there is no misinterpretation. Once
the need is clearly understood, the procurement professional should
develop a specification
Two types of specification - 🧠 ANSWER ✔✔Performance and conformance
Performance specifications - 🧠 ANSWER ✔✔Specifies what the product or
service will do or achieve. This covers the outputs required, tolerances and
any functions the product/service may have to perform
Conformance specifications (technical) - 🧠 ANSWER ✔✔Specifies which
standards a requirement must meet or exceed
Characteristics of Performance specifications - 🧠 ANSWER ✔✔- Allow
supplier innovation
- Promote competition in the marketplace
- The supplier bears the risk
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 2
,- Buyer may not know exactly what they will be getting
- Shorter document
- Quicker to prepare
- Takes advantage of supplier expertise
Characteristics of Conformance specifications (technical) - 🧠 ANSWER
✔✔- No supplier innovation
- Reduce competition
- The buyer bears the risk
- Buyer knows exactly what they are getting
- Longer, complex document
- More time consuming to prepare
- Disregards supplier expertise
Procurement Cycle - Stage 2 - Market commodity/make or buy options - 🧠
ANSWER ✔✔Once specification has been developed, the procurement
professional is aware of what is required, why and when. The options to
consider include the budget available to spend on the procurement, the
number of suppliers available and whether to make or buy
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 3
, To fully understand the market pricing, procurement professionals should
research the level of competition. The .... .... ... model is an established way
of assessing the competition - 🧠 ANSWER ✔✔Porter's Five Forces
Porter's Five Forces Model - 🧠 ANSWER ✔✔- Threat of new entrants
- Threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Rivalry among existing Competitors
Core Competencies - 🧠 ANSWER ✔✔The processes that are critical to an
organisation achieving success and competitive advantage
Make or buy decisions are about - 🧠 ANSWER ✔✔whether a product or
service should be made within the organisation or bought-in from an
external supplier
A procurement professional can use Carter's Outsource Matrix when - 🧠
ANSWER ✔✔deciding whether to make or buy
The four quadrants of Carter's Outsource Matrix - 🧠 ANSWER ✔✔-
Strategic Alliance
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED 4
