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CIPS L4M8 Exam Syllabus Topics:

CIPS Procurement and Supply in Practice Sample Questions:

1. What is a cross function team?

2. Which Incoterm applies here?
The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination. As soon as the goods are on the vessel, the risk transfers to the buyer

A) CIF - Cost Insurance and Freight
B) DAP - Cost and Freight
C) FOB - Free On Board
D) FAS - Free Alongside Ship

3. Analyse FIVE ways that structured procurement processes could help TechFab mitigate the loss of a vital supplier.
(25 marks)
TechFab Industries
TechFab industries is a leading manufacturer of high-tech components for its clients' manufacturing of advanced electronic systems, its flagship Quantumchip product is in high demand due to its leading-edge technology and superior performance. However, the production of Quantumchips relies heavily on a rare material called Neotanium. which is difficult to source.
Recently. RareMetals Inc., the primary supplier of Neotanium, unexpectedly stopped trading. This sudden disruption left TechFab with a significant challenge, as they had no backup supplier or contingency plan in place. TechFab had relied on RareMetals inc. due to its long-standing relationship and had not formalised its procurement processes. The lack of a structured procurement strategy has now become a significant issue.
Without Neotanium. TechFab cannot meet the soaring demand for its Quantum chips, risking delays, damage to its reputation and potential loss of market share.
The management team is now urgently seeking alternative suppliers, but the process is slow and challenging due to the rarity of the material, in response to this crisis. the Chief Operations Officer (COO) has called for an emergency meeting to address the supply chain vulnerability. The COO proposes the establishment of a dedicated procurement team to develop and implement formal procurement policies and procedures. This team would be responsible for diversifying the supplier base, conducting risk assessments, reducing reliance on single-source approaches, improving access to innovative materials and ensuring that TechFab is never again caught unprepared.

4. What happens in the public sector, regarding providing feedback?

5. What Incoterm applies here?
The supplier is responsible for delivering the goods to a carrier or to an intermediate agreed place. From this point, the buyer is responsible for ensuring these goods reach their named destination.

A) EXW - Ex Works
B) CPT - Carriage Paid To
C) FCA - Free Career
D) CIP - Carriage and Insurance Paid to

Solutions: