CIPS L4M1 PAST EXAMs QUESTIONS AND
ANSWERS WITH ACCURATE SOLUTIONS
O1. Outline FIVE ways in which improving the quality of a product can
add value for an organization.
✔✔Improved quality can add value by reducing the need for appraisal
and prevention activities, which will save time and money.
Improved quality will mean that the risk of failure is reduced. This
should lead to a reduction in losses incurred due to poor quality products
reaching the consumer.
Improved quality will result in fewer goods being rejected or having to be
re-worked, which will reduce costs for the organisation.
Improved quality should improve brand image, resulting in more
customers, increased revenue and profits, which have the effect of adding
value.
Similarly, if an improvement in the quality of the product has improved
the brand image, customers are more likely to be loyal, resulting again in
higher revenue and profits.
Improved quality should mean that quality control measures can be
reduced, thereby saving costs
O2. Describe FOUR ways in which added value may be created for a
buying organisation through an effective sourcing process.
✔✔Suppliers are motivated and are prepared to work with the buying
organisation to reduce costs and add value.
Suppliers are likely to want to share innovative approaches to add value.
Suppliers are more likely to deliver products and services without
defects, which reduces the costs of rectification.
Suppliers may add value by sharing development costs and providing co-
investment.
,Suppliers are more likely to reduce lost time by providing timely tender
bids, documentation and deliveries.
Suppliers are more likely to reduce wastage and add value by helping to
identify unnecessary processes and overstocking.
O3. Describe the roles typically undertaken within an organisation by:
(i) The local procurement teams
(ii) The central procurement team.
✔✔The roles of a local procurement team might have included sourcing
small order items, sourcing emergency items to avoid disruption to
production, sourcing from local suppliers and sourcing items used only
by the local division.
The roles of a central procurement team might have been described in
terms of determining procurement and supply chain policies, preparing
standard specifications, negotiating bulk contracts, procurement research
and procuring capital assets.
O4. Describe THREE objectives of public sector organisations.
✔✔To deliver essential services, not provided by the private sector, to an
acceptable level or quality.
To encourage national and community development, by developing
education and skilling and stimulating economic activity.
To pursue socio-economic goals, such as support for small and minority-
owned businesses and the pursuit of sustainable development.
O4. Explain FOUR ways in which regulation might impact on public
sector procurement.
✔✔To ensure that bought in materials, goods and services comply with
defined public standards and specifications.
, To ensure that all procurement exercises are compliant with public
policies and statutory procedures.
To ensure that all supply chain operations are compliant with legal
requirements, for example health and safety and environmental
sustainability.
There is a high requirement for accountability, so that audit trails must
be maintained.
Procurement in the public sector must be based on value for money,
because taxpayers' money is being used.
The tendering process is more likely to be more bureaucratic and time
consuming, because of regulations such as EU Procurement Directives.
O2. Explain THREE reasons why clearly defining needs adds value in
the sourcing process
✔✔It encourages all relevant stakeholders to consider what they really
need and whether this is the most cost-effective solution
It communicates the requirement clearly to the supplier, so that they can
plan to conform
It minimises risk and costs associated with ambiguity or
misunderstanding
It provides a means of evaluating the conformance of the goods or
services supplied
It supports standardisation and consistency, where items are sourced
from more than one supplier.
O2. Describe FOUR types of electronic system that can be used in the
sourcing process.
✔✔E-catalogues: suppliers exhibit their products in these and they can
be viewed online or downloaded
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