Question No. 1

Which sector most frequently uses invitation to tender?

AExplanation:
The public sector uses tenders a lot more in the working environment than private sector.

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Correct Answer: A

Question No. 2

What topics are covered within ethics?

AExplanation:
Topics that are covered within ethics are;
1. Environmental factors
2. The triple bottom line: profit, people and planet
3. Adopting sustainable practice.
4. considering the social impact of organization's behaviors

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Correct Answer: A

Question No. 3

What are Carter's 10Cs?

AExplanation:
Carter's 10cs is a detailed mechanism that procurement professional uses to evaluate potential supplier. What the procurement professional should consider in supplier are the following 10 things.
1) Competency 2) capacity 3) Cost 4) Cash 5) Clean 6) Consistency 7) Control 8) Culture 9) Com-mitment 10) Communication.

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Correct Answer: A

Question No. 4

What are the eight elements of whole life asset management?

AExplanation:
Whole life asset management is the process of evaluating the total price and all associated costs of a product to make an informed decision as to which option will provide the organization with the best value for money option: To achieve this the organization works at the following eight elements.
1. Identify need/objectives/risk: The first stage of the whole life asset management is the same as the first stage in the CIPS procurement and supply cycle: identify the need prior to any asset being procured; the need could be competition in the marketplace, raised/reduced demands or financial concern. Once this need has been identified, the objectives of the new assets need to be set, and this may include being more energy efficient, reducing cost or saving money.
Risk also needs to be explored. When investing in a new asset there are factors to be considered that may or may not be advantageous to the investment. These include; downtime, lost sale/revenue or associated cost.
2. Procurement: Procurement professional would have to source and arrange supply of the asset.
3. Construction: ones the supply has being arranged, then the designing and the manufacturing of the asset begins.
4. Commissioning
5. Deterioration/maintenance
6. Condition performance monitoring
7. Decommissioning
8. Renewal/replacement
*
Refer to the question column for response

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Correct Answer: A

Question No. 5

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

AExplanation:
The Kraljic Portfolio Matrix shows where a product or services fits into in an organization. It is based on two areas 1) the risk of supply (Risk Impact). 2) Effect it has on profit (cost impact).

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Correct Answer: A

Free CIPS L4M8 Exam Actual Questions

The questions for L4M8 were last updated On Jan 18, 2025