CIPS L4M8 Q&A - in .pdf

  • L4M8 pdf
  • Exam Code: L4M8
  • Exam Name: Procurement and Supply in Practice
  • Updated: Sep 13, 2026
  • Q & A: 198 Questions and Answers
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CIPS L4M8 Exam Syllabus Topics:

SectionObjectives
Procurement Technology and Innovation- Digital procurement tools
  • 1. Data analytics in procurement
    • 2. E-procurement systems
      - Innovation in supply management
      • 1. Automation and AI applications
        • 2. Process optimisation
          Procurement Process and Sourcing- Sourcing strategies
          • 1. Make or buy decisions
            • 2. Outsourcing and insourcing approaches
              - Supplier selection and evaluation
              • 1. Supplier appraisal techniques
                • 2. Pre-qualification and tendering
                  Risk, Ethics and Sustainability- Procurement risk management
                  • 1. Risk identification and mitigation
                    • 2. Supply chain disruptions
                      - Ethical and sustainable procurement
                      • 1. Corporate social responsibility
                        • 2. Sustainable sourcing practices
                          Procurement and Supply Context- External business environment
                          • 1. Market conditions and supply markets
                            • 2. Economic and regulatory influences
                              - Role of procurement in organisations
                              • 1. Stakeholder expectations and value delivery
                                • 2. Organisational objectives and procurement contribution
                                  Supplier Relationships and Performance- Performance improvement
                                  • 1. KPIs and measurement systems
                                    • 2. Continuous improvement approaches
                                      - Supplier relationship management
                                      • 1. Communication and governance
                                        • 2. Collaboration and partnership models
                                          Contracting and Legal Principles- Contract management
                                          • 1. Dispute resolution and remedies
                                            • 2. Performance measurement
                                              - Contract formation
                                              • 1. Terms and conditions
                                                • 2. Key elements of contracts

                                                  CIPS Procurement and Supply in Practice Sample Questions:

                                                  Question #1

                                                  What is needed for a contract to be binding?

                                                  Answer:

                                                  See the answer in explanation.
                                                  Explanation:
                                                  A contract is written or verbal agreement, made between two or more parties that is legally enforceable. 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 per-formance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, and there must be an acceptance of the offeror's offer by the offeree.

                                                  Question #2

                                                  How does positive social impact present itself?

                                                  Answer:

                                                  See the answer in explanation.
                                                  Explanation:
                                                  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 employment
                                                  2. Fair wages
                                                  3. low pollution
                                                  4. sustainable resources
                                                  5. Engagement and movement with local organization

                                                  Question #3

                                                  In relation to the case study 'Walmart and H & M in spotlight regarding human rights in media ex-plain which human rights are not being granted to the workers.

                                                  Answer:

                                                  See the answer in explanation.
                                                  Explanation:
                                                  Human rights are the statutory ways in which individual expects to and should be treated. Ethical and responsible sourcing includes the protection of human rights, not violating it.
                                                  When young women are being bound into contracts where they work for two to three years, they are not being granted the right to freedom from slavery.
                                                  Forcing these women to live in hostels under restrictions that prevent them from moving and are denied the opportunity to improve on their living condition is a violation of their right to life, liberty and personal security, also, their freedom from torture and degrading treatment is being violated.

                                                  Question #4

                                                  Create two KPIs and two SLAs for a contract with which you are familiar.

                                                  Answer:

                                                  See the answer in explanation.
                                                  Explanation:
                                                  Key performance Indicators (KPIs) and service level Agreement (SLA) are measures that demon-strate the effectiveness of a supplier. By using KPIs and SLAs as part of suppliers management, procurement professionals can monitor and evaluate performance and identify areas that need attention or improvement.
                                                  KPIs and SLAs are used for product and service contract respectively.
                                                  Two KPI
                                                  1) Number of defects: Not more than two defects is allowed on the generator and its accessories
                                                  2) Supplier Lead Time: Delivery after placing order should not be anytime longer than 14 days.
                                                  Two SLAs
                                                  1) The toilet should be washed with soap, and deodorant should be sprayed twice a day
                                                  2) Bathroom and toilet should not be allowed to smell out to the passage. Bathroom smelling out to the passage twice a month is a violation of the contract.

                                                  Question #5

                                                  What effect is technology having on jobs within an organization with which you are familiar with?

                                                  Answer:

                                                  See the answer in explanation.
                                                  Explanation:
                                                  Refer to the question column for response

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