This page was exported from IT Certification Exam Braindumps [ http://blog.braindumpsit.com ] Export date:Wed Apr 16 19:40:02 2025 / +0000 GMT ___________________________________________________ Title: CIPS Level 4 Diploma in Procurement and Supply L4M8 Practice Test Engine Try These 106 Exam Questions [Q13-Q27] --------------------------------------------------- CIPS Level 4 Diploma in Procurement and Supply L4M8 Practice Test Engine: Try These 106 Exam Questions Guaranteed Success in CIPS Level 4 Diploma in Procurement and Supply L4M8 Exam Dumps QUESTION 13Describe three ways in which a buyer could or test the market in other to assist with determining a need. Once the need has been understood, defined, justified and authorized, the next stages are to analyze and test the market. Analyzing and testing the market includes looking at the following1. STEEPLE analysis2. SWOT analysis3. Porter’s five forces4. Level of suppliers competition5. Supply and demand6. Push and pull7. Supplier segmentation8. Product life cycle9. Ansoff matrix10. Early supplier involvement11. Make or buy12. Offshoring1. Porter’s five forces: The use of porter’s five forces helps the procurement professional to understand the level of competition within the marketplace. Whether it is a monopoly, oligopoly, imperfect or perfect market. Knowing these will equip the organization to better negotiate a favorable price.2. Supply and Demand: the procurement professional must also think about supply and demand as part of their market analysis when they receive a requisition. This economic factor has a significant effect on the prices charged and on the cost incurred.3. Supplier segmentation: in this the procurement professional start to form an opinion of potential suppliers.. They can segment current suppliers into four categories, depending on their level of integration into an organization. This can help to inform the procurement professional of which type of supplier relationship that would be most appropriate.QUESTION 14How does positive social impact present itself? Organizations which display good behavior create a positive social impact. The community in which they are based and to which they supply will benefit from the following.1. High employment2. Fair wages3. low pollution4. sustainable resources5. Engagement and movement with local organizationQUESTION 15Which sector most frequently uses invitation to tender? The public sector uses tenders a lot more in the working environment than private sector.QUESTION 16Using the case study about Toyata, which type of benchmarking Tada has used when comparing the Toyata with Porsche? Benchmarking is the process of comparing a function, process or performance with another which is best-in-class. Benchmarking is either internal or external. External benchmarking has three types; 1) Competition benchmarking, 2) Functional 3) Generic Company Toyota with the Porsche a competition in the same industry and by suggesting that drives will find the cars performances comparable with that of Porsche Cayman sports car, suggest think it is an external competitive benchmark.QUESTION 17Use the balance sheet below to work out the correct ratio for coffee Time and explain whether the company appears to have enough assets to cover it liability. A current ratio of 1 shows that the organization has enough assets to repay (cover) it liability Buyers can be encouraged to deal with these suppliers after if they considered proven and strong in other areas.Refer to the question column for responseQUESTION 18What are the reasons that a contract can legally be terminated? A contract is written or verbal agreement, made between two or more parties that are legally en-forceable. For a contract to be legally binding it must include intention of parties entering into the contracts. All parties must have the capacity to contract or be contracted. They must be of a sound mind, there should be a promise (offer) for performance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, there must be an acceptance of the offeror’s offer by the offeree.There are many reasons contract can legally be terminated, including non-performance by one or both parties, a significant change in the requirement.There are several reasons contract can legally be terminated, including non-performance by one or both parties; breach of material, failure to meet service level agreement, ethical breaches, a significant change in the requirement of either party caused by ethical change in the market, change in Demand, obsolescence, contract completion. The procurement professionals should get an exit strategy that should encourage a stress free disengagement should incase there are no profitable reason to continue with the contract.QUESTION 19Explain how procurement should decide whether to make or buy a product or service. Make or buy decision are about whether a products or services should be made within the organization or bought-in from an external supplier.For a procurement professional to establish which method (make or buy) offers the best value, the item in question must be thought through if it is core to the organization and which option will add more value to the organization, as regards achieving its strategic goals. If it is core the procurement professional decide to make it and if it is not core the product or services can be bought in.QUESTION 20Write down a list of assets that belong to an organization with which you are familiar. Assets are things that an organization owns regarded as having value and available to meet debt and generate revenue. The following are list of assets owned by Fullpower project, a shoe manufacturing firm;1) Machinery,2) a factory,3) an innovative software,4) skills of its personnel,5) land,6) Distribution network.7) Its long time relationship with experienced suppliers of raw materials and Distributors of finished shoes.QUESTION 21Think of a supply chain with which you are familiar and distinguish between the primary, second-ary and tertiary sector organization within it. Supply chain involves a network of individuals, organizations, technology activities and resources to make sure goods or services flow along the chain. If one point fails, every part further along the chain fails.Fullpower projects (a flour manufacturer) supply chain begins with producers (raw materials, wheat farmers), suppliers, manufactures, distributors, retailers and end users (customer).Fullpower projects supply chain falls within the primary sector (producers of wheat), the secondary sector include the manufacturing (those that converts the wheat the suppliers brings into flour) and tertiary sector (the distributor those that takes the wheat to the end users).QUESTION 22Which Incoterm applies here?The supplier is responsible for delivering the goods to a point alongside a water vessel (such as a dock or quay) as determined by the buyer at a named port. Once delivered, all risk is transferred to the buyer until the goods are transported and delivered to their name destination.  DAT – Delivered At Terminal  DAP – Delivered At Place  DDP – Delivery Duty Paid  FAS – Free Alongside Ship QUESTION 23Explain why the behavior of an organization with which you are familiar could affect its business. The social impact of an organization is formed by various behaviors. If an organization; behavior is poor this will create social impact which is likely to be reflected in the business performance. Organizations which display poor behavior face outcomes such as the following.1. Reduce brand loyalty2. Difficulty in recruiting3. Negative media coverage4. Reduced sales/profit5. reputation damageQUESTION 24Which Incoterm applies here?The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination and must also cover the cost of this. The supplier bears all risks until the goods are delivered to the buyer at their named place.  FOB – Free On Board  DAP – Cost and Freight  CIF – Cost Insurance and Freight  AS – Free Alongside Ship QUESTION 25Which Incoterm applies here?The supplier is responsible for delivering the goods to a carrier or to an intermediate agreed place and should ensure that the goods have at least minimal insurance cover until this point. Again, the buyer is responsible for ensuring these goods reach their named destination from here.  EXW – Ex Works  FCA – Free Career  CPT – Carriage Paid To  CIP – Carriage and Insurance Paid to QUESTION 26What do STEEPLE and SWOT stand for? After a need in an organization has been identified/understood, defined, justified and authorized, the next stages are to understand how commodity prices are reacting, which suppliers are available and their strength. The make or buy decision can be reached with knowledge from this; the procurement professional can consider the organization external environment, strength, weakness opportunity and threat to develop strategy/plan of how to achieve the procurement.‘STEEPLE’ is an effective way to evaluate the external environment. It helps buyers to assess factors that could affect the need in hand and helps them to develop the plan accordingly. ‘STEEPLE’ is an acronym which stands for, Social, Technology, Economic, Environment, Political, Legal, Ethical‘SWOT’ helps the organization to analyze its strength and within the organization and the oppor-tunity and threats outside the organization.‘SWOT’ is an acronym which stands for, strength, weakness, opportunity and threats.QUESTION 27Describe three benefits of working cross-functionally Working cross-functionally is the involvement of all departments involved in an organization to contribute knowledge, skills and innovation towards adding value of achieving the organization’s strategic goal. All functions may include; procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.When working cross functionally, members of the organization gives support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information. Loading … Test Engine to Practice L4M8 Test Questions: https://www.braindumpsit.com/L4M8_real-exam.html --------------------------------------------------- Images: https://blog.braindumpsit.com/wp-content/plugins/watu/loading.gif https://blog.braindumpsit.com/wp-content/plugins/watu/loading.gif --------------------------------------------------- --------------------------------------------------- Post date: 2023-07-23 15:23:58 Post date GMT: 2023-07-23 15:23:58 Post modified date: 2023-07-23 15:23:58 Post modified date GMT: 2023-07-23 15:23:58