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The CIPS L4M8 (Procurement and Supply in Practice) Certification Exam is an internationally recognized qualification that is designed to provide individuals with the practical skills and knowledge required to succeed in the procurement and supply chain management field. This certification is an ideal choice for professionals who are looking to advance their careers in this field, as it covers a wide range of topics that are essential to success.
The CIPS L4M8 exam, also known as Procurement and Supply in Practice, is a certification offered by the Chartered Institute of Procurement and Supply. This exam is designed for professionals who want to gain an in-depth understanding of procurement and supply chain management practices. The exam covers various topics such as procurement strategy, supplier management, contract management, risk management, and performance measurement.
CIPS Procurement and Supply in Practice Sample Questions (Q29-Q34):
NEW QUESTION # 29
What Incoterm applies here?
The goods are considered ‘delivered’ at the point of release from the supplier’s premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance – this must be arranged by the buyer. The risk is on the buyer from this point.
a) EXW – Ex Works
b) FCA – Free Career
c) CPT – Carriage Paid To
d) CIP – Carriage and Insurance Paid to
- A. CIP – Carriage and Insurance Paid to
- B. CPT – Carriage Paid To
- C. EXW – Ex Works
- D. FCA – Free Career
NEW QUESTION # 30
How can procurement professionals select suppliers?
During the sourcing stage of the procurement cycle, the procurement professional needs to identify and select suppliers to fulfill the business needs. Supplier selection involves evaluating suppliers against predetermine criteria to assess their suitability in working with the buying organization. Suppliers can be evaluated according to Carter’s 10Cs which are as follows: (1) Competency (2) capacity (3) consistency (4) control (5) cost (6) commitment (7) cash (8) Clean (9) culture (10) communication.
Procurement professionals can decide to evaluate and select suppliers based on the overall strategy and the business objectives. After that, it most suitable suppliers receive the documentation (Invitation to tender/ request for quotation).
NEW QUESTION # 31
What are the four stages of decommissioning?
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
NEW QUESTION # 32
Looking at stage 8 of the procurement and supply cycle, what does TCA mean?
When evaluating offers, it is important to remember that the best price may not be the lowest. To ascertain that; the total cost of Acquisition TCA (the cost a buyer bears for placing orders and re-ceiving a product from a supplier) should be uncovered and compare against offers received. Things to consider that might make up the total cost of acquisition are;
1) logistics and handling costs
2) Cost of requisition
4) stock cost
7) customer services
9) Training & support
NEW QUESTION # 33
Explain the difference between bonded and forced labor.
Bonded labour and forced labour are among the five types of modern slavery which is against ethical and responsible sourcing.
Bonded labour also known as debt bondage, this is an individual’s promise to provide services through exploitation as repayment, or part of them, of a debt or other obligation whereas forced labour is work that people are forced to do with the heat of punishment if it is not carried out.
NEW QUESTION # 34
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