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CIPS Procurement and Supply in Practice : L4M8

L4M8 Exam Simulator
  • Exam Code: L4M8
  • Exam Name: Procurement and Supply in Practice
  • Updated: Sep 19, 2026
  • Q & A: 198 Questions and Answers
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CIPS L4M8 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Whole Life Asset & Cost Management25%- Total cost of ownership concept
  • 1. Legal, environmental and waste management obligations
    • 2. Purchase, operation, maintenance and disposal costs
      • 3. Hidden costs and supply chain risks
        • 4. Cross-functional collaboration and data use
          Topic 2: Ethics, Responsibility & Compliance25%- Ethical and responsible sourcing application
          • 1. Sustainability and ESG integration
            • 2. Regulatory compliance and ethical governance
              • 3. CIPS Code of Conduct and professional standards
                • 4. Anti-bribery, corruption and human rights protection
                  Topic 3: Application of Procurement Cycle25%- Key stages of procurement cycle in practice
                  • 1. Tendering and selection processes
                    • 2. Contract formation and management
                      • 3. Defining business needs and requirements
                        • 4. Market analysis and supplier research
                          Topic 4: Sourcing Process & Supplier Management25%- Stages of strategic sourcing
                          • 1. Supplier evaluation, selection and award
                            • 2. Stakeholder engagement and communication
                              • 3. Creation of contract terms and specifications
                                • 4. Supplier performance monitoring and development

                                  CIPS Procurement and Supply in Practice Sample Questions:

                                  Question #1

                                  What are the four stages of decommissioning?

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.
                                  Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example gas plan, generator, transformer etc.
                                  Decommissioning process include the following aspect
                                  1) Preparation: Plan the process
                                  2) Dismantle: Take the asset apart and remove hazardous waste
                                  3) Processing: make safe any hazardous waste
                                  4) Disposal: Ensure paper work is received to confirm removal and disposal
                                  * Refer to the question column for response

                                  Question #2

                                  Which products or services should not be considered for outsourcing, according to Carter's out-sourcing matrix

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  Carters outsource matrix is a useful tool that procurement professionals uses to decide which products or services has a high or low contribution to the organization operation performance and its strategic importance.
                                  The matrix segments products/services into four quadrants. These are Eliminate, outsource, strategic alliance and retain.
                                  According to Carters outsource matrix, all product/services that has a high strategic importance should not be outsourced. They should rather be retained in house or carefully chose suitable sup-pliers and go into strategic alliance.

                                  Question #3

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

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  An offer is created when one party communicates to another or to multiple parties that they wish to enter into a legal binding agreement in accordance with the terms stated, for example; a company in promotion advertising for buyers to buy one and get one free, an offer is a buying organization communicating to a supplier to supply X number of goods and be paid x amount upon delivery at company premises, an offer is when a football club proposes to pay X amount to a player if agrees to play for them for a month. An offer can be legally banded if accepted, whereas invitation to treat does not. An invitation to treat is just an invitation from one party to another to begin negotiations with the intention of creating an offer. If an offer is made without stating terms, this becomes an invitation to treat, for example, an invitation to treat is when a pharmacy displays a drug in its shelf. An invitation to treat can be linked to a request a buyer send to suppliers asking them for specific information.
                                  * Refer to the question column for response

                                  Question #4

                                  Describe one implied term and one expressed term from a contract with which you are familiar.

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  Terms are the right and duties agreed between parties which are then documented in contract. Terms can be implied or expressed.
                                  Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence ,confidence , whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery details and quantities.

                                  Question #5

                                  What are the four quadrants within the Kraljic portfolio matrix?

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  At the early stages In procurement and supply cycle, buyers begin segmenting current supplies in the categories, depending on their level of integration into the organization. To help get this done, the buyer may use the Kraljic portfolio matrix. The kraljic portfolio matrix segment suppliers into four categories, which are;
                                  1) Routine 2) Bottleneck 3) Leverage 4)strategic supplier

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