CIPS L4M1 Exam 200 Questions with Correct
Answers.
Stakeholders - ANS In any activity an organization undertakes, whether strategic,
operational or tactical, the activity can only be successful with the input, commitment
and support of its key stakeholders. Gaining and maintaining the support and
commitment of stakeholders requires a continuous process of engaging the right
stakeholders at the right time and understanding and managing their expectations.
Global Supply Chains - ANS a dynamic worldwide network when a company purchases
or uses goods or services from overseas. It involves people, information, processes and
resources involved in the production, handling and distribution of materials and finished
products or providing a service to the customer.
Whole Life Costing - ANS takes into account the total cost of a product or service over
its lifetime, from concept through to disposal including purchase, hire or lease,
maintenance, operation, utilities, training and disposal. It is important for procurement to
take all these elements into consideration when making decisions and comparing the
costs of buying, renting or leasing equipment particularly. In most cases the purchase
costs are only a small proportion of the cost of operating it.
Stakeholder mapping - ANS A systematic way to identify the expectations, needs,
importance, and relative power of various stakeholders.
Value Generation - ANS Creating value from the supply base can be achieved by not
only focusing on price but also increasing operational performance, driving efficiencies,
working collaboratively or developing continuous improvement activities.
Procurement Cycle - ANS the cyclical process of key steps when procuring goods or
services.
Steps of the Procurement Cycle - ANS 1. Understand Need and develop High level
Spec.
2. Market/Commodity and options (ink make or buy assessment).
3. Develop Strategy/plan
4. Pre-procurement market test and market engagement.
5. Develop documentation, PPQ/detailed spec/combine with 1.
6. Supplier selection to participate in ITT/RFQ/negotiation.
7. Issue ITT/RFQ.
8. Bid/Tender Evaluation and validation.
9. Contract award and implementation.
10. Warehouse logistics and receipt.
11. Contract performance review and continuous improvement.
12. SRM and SC management and development.
13. Asset management/end of life and lessons learnt.
,Contract Management - ANS delivers a great amount of data and intelligence that
support the smooth running of a business. Historically, the purpose of a contract as a
legal document was to protect the parties from negative consequences of its breaches.
Today, when companies are facing increasing pressures to reduce costs and improve
financial and operational performance, forming and managing new trading relationships
is critical for success. How well an organization manages its relationships with partners
defines the two core elements of bottom line performance: increasing revenues and
decreasing costs. ... Plays an important role by ensuring the smooth running of
operations, protecting the organization from risks and shaping the buyer-supplier
relationships (Aberdeen Group, 2007; Sabena, 2008).
Application of Technology - ANS E-Procurement systems can be utilized in the Request
for Information (RFI), Request for Proposal (RFP) and Request for Quotation (RFQ)
process as well as for e-Tendering, e-Auctioning, vendor management, catalogue
management, purchase ordering, order status, shipment status, e-invoicing, e-payment
and contract management.
Sourcing / procurement systems P2P - ANS relates to the electronic procurement of
products or services via the internet. Other systems such as electronic data interchange
(EDI) and enterprise resource planning (ERP) are also forms of...
International Labor Organization - ANS The only tripartite U.N. agency, since 1919 it
brings together governments, employers and workers of 187 member States , to set
labor standards, develop policies and devise programmers promoting decent work for
all women and men.
Supplier evaluation & appraisal - ANS is conducted at the tender stage and can be in
the form of either a questionnaire, interview or site visit to assess the supplier's
capability in terms of capacity, financial stability, quality standards, performance and
organizational structure and processes in place. Both existing and potential suppliers
are scored on suitability and either approved or rejected to be added onto the approved
supplier list (ASL). This helps to improve existing suppliers performance and also can
periodically ensure you have the right sized and fit of suppliers on you approved list.
Supplier Selection - ANS is an important organizational process: purchased products
represent between 40% and 60% of end product sales and have a direct impact on the
cost and quality of products. In addition, even a small cost gained by selecting a good
supplier can have great impact on benefits (Aider et al., 2011).
It relies on multiple assessment techniques which include both quantitative and
qualitative methods (Choi and Hartley, 1996). At the same time, many organizations
continue to select suppliers based on experience and intuition - selective and unreliable
approaches (Kentia, 1996). The most common evaluation criteria used to select
suppliers are: financial health, expertise, operational performance metrics, business
, processes and practices, enabling behaviors or cultural factors and risk factors (Aider et
al., 2011).
Sourcing - ANS automates contract lifecycle management (CIPS: Electronic Commerce
and e-Business). Today, sourcing and procurement form the core of the e-Purchasing
cycle (Buy IT, 2004). Procurement is the process through which employees of the
purchasing organizations access supplier online catalogues, select items, conduct the
purchasing process and communicate directly with suppliers (Lenders et al., 2002).
Sourcing, on the other hand, is a broader concept as it incorporates the key elements of
the buying process, such as knowledge, specification, requests for quotation/tender/e-
auction, evaluation/negotiation and contract (CIPS: Electronic commerce and e-
Business).
The Purchase to Pay (P2P) Process - ANS underpins many sub-processes from
sourcing and negotiating terms, ordering, receipting and payment, through to contract
and relationship management (Lyons and Farrington)
Supply chain governance - ANS the system of directing the behaviors and decisions of
procurement within an organization via legislative, executive and judicial processes.
Procurement also needs to establish effective governance of the supply chains they put
in place.
Centralized Procurement - ANS implies that purchasing decisions are made either by
company headquarters or some regional or divisional level
Decentralized Procurement - ANS an organization’s activities are spread over a number
of plants or locations.
Procurement Policy Development - ANS developed in order to establish the rules of
how procurement should be conducted specific to the organization.
Procurement Strategy Development - ANS developed in order to establish the direction
of how procurement should be organized in order to implement the procurement policy.
Global Standard for Procurement and Supply - ANS is a comprehensive competency
framework. Used by individuals and organizations to enhance performance, the
Standard sets the benchmark for what good looks like in procurement and supply at all
levels and across all sectors. It helps individuals to identify current operating skills and
abilities and what is needed to progress.
GDPR - ANS General Data Protection Regulation
Sectors of the economy - ANS primary, secondary, tertiary
Primary sector - ANS extraction of raw materials - mining, fishing and agriculture.
