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CIPS L4M8 Exam Syllabus Topics:

CIPS Procurement and Supply in Practice Sample Questions:

1. What two areas of an organization do the Kraljic Portfolio matrix uses to establish the category of a product or service?

2. Explain with examples three differences between offers and invitation to treat.

3. Describe two ways in which an organization with which you are familiar could use continuous im-provement as part of whole life asset management.

4. Describe what should be considered when creating damages terms in a contract.

5. Analyse FIVE whole-life costs that SigmaCo should consider when sourcing globally. (25 marks) SigmaCo Following the recruitment of a new internationally focused CEO at SigmaCo. there has been a new global sales expansion strategy. To compete in a larger international market that is very price-sensitive. the senior management team has put together a project team that will evaluate current whole-life asset management practices, particularly focused on costs.
One of the areas of costs is the direct materials and equipment that are used in SigmaCo's manufacture of its toys. These are currently sourced from suppliers in SigmaCo's home country. The direct materials represent
65% of their overall spend and this area of cost has the potential to deliver vital cost savings to enable SigmaCo to compete with larger companies, but still differentiate based on its strong brand name and commitment to quality.
initial research has identified a range of global suppliers that can provide the direct materials and equipment that SigmaCo requires at significantly lower unit prices. This global sourcing approach is being considered to achieve lower costs. However, so that SigmaCo can fully understand the full implications of this change in its sourcing approach, the whole-life costs need to be analysed.

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