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CIPS L4M1 –EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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CIPS L4M1 –EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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CIPS L4M1 –EXAM 2024/2025 WITH 100%ACCURATE SOLUTIONS
O1. Outline FIVE differences between purchasing goods and purchasing
services. - Precise Answer ✔✔1. Goods are tangible, services are
intangible:
2. Services cannot be separated from their supplier:
3. Heterogeneity: goods are usually uniform in nature while services are
unique at each delivery
4. Services 'perish' immediately on delivery whereas goods can be stored
until required
5. Products are easier to specify, being tangible
O2. Explain THREE circumstances in which a competitive tendering
exercise might not be the best approach to making a purchase. - Precise
Answer ✔✔1. Urgency
2. Commercial confidentiality or national security (e.g. military
organisations):
3. Value of the purchase:
4. Production costs cannot be measured accurately:
5. Price is not the only criterion for supplier selection and contract award
6. Intellectual Property Rights and monopoly
O2. Describe TWO e-sourcing tools and their use in procurement and
supply. - Precise Answer ✔✔1. E-Catalogues
,2. E-Tendering
3. E. Auction
4. Reverse Auctions
5. Online suppleir evaluation data
O3. Explain the role of a shared services unit (SSU). - Precise Answer
✔✔SSUs reflect a desire to centralise and share services
The shared service provider becomes a dedicated provider of services
such as; finance, HR, IT and procurement which continue to be provided
internally
An SSU manages costs and quality SLAs to demonstrate value for
money.
An SSU's benefits may be summarised as:
• cost effective internal service;
• liaison with its customers;
• anticipating future demand;
• employing resources and providing higher levels of service more cost
effectively than if they were provided by a department or an external
provider.
O3. A manufacturer of electrically powered tools for the engineering
industry consists of four separate business units, each of which
undertakes its own purchasing activities.
, Discuss THREE benefits of centralising all purchasing activities with
those of retaining the present decentralised structure. (1 of 2) - Precise
Answer ✔✔Centralisation' and 'decentralisation' refer to the degree to
which responsibility and authority is delegated. Arguments for
centralisation can only be evaluated in the context of specific
organisational environment and might include:
1. Policies & procedures
2. Consolidation of requirements
3. Location
4. Supply market structure
5. Expertise required:
6. Customer demands
O3. A manufacturer of electrically powered tools for the engineering
industry consists of four separate business units, each of which
undertakes its own purchasing activities.
Discuss THREE benefits of centralising all purchasing activities with
those of retaining the present decentralised structure. (2 of 2) - Precise
Answer ✔✔The benefits of retaining the present de-centralised structure
include:
1. Local responsibility
2. Knowledge of the local environment, culture and customer needs
3. Skills development of buyers in each unit
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