Commercial Negotiation
Last Update May 17, 2024
Total Questions : 162
Our CIPS Level 4 Diploma in Procurement and Supply L4M5 exam questions and answers cover all the topics of the latest Commercial Negotiation exam, See the topics listed below. We also provide CIPS L4M5 exam dumps with accurate exam content to help you prepare for the exam quickly and easily. Additionally, we offer a range of CIPS L4M5 resources to help you understand the topics covered in the exam, such as CIPS Level 4 Diploma in Procurement and Supply video tutorials, L4M5 study guides, and L4M5 practice exams. With these resources, you can develop a better understanding of the topics covered in the exam and be better prepared for success.
| Exam Name | Commercial Negotiation |
| Exam Code | L4M5 |
| Actual Exam Duration | The duration of the CIPS L4M5 exam is 90 minutes. |
| What exam is all about | CIPS L4M5 is an exam that is part of the Chartered Institute of Procurement and Supply (CIPS) Level 4 Diploma in Procurement and Supply. The exam focuses on the principles and practices of managing contracts and relationships in procurement and supply. It covers topics such as contract formation, contract management, supplier relationship management, and dispute resolution. The exam is designed to test the candidate's knowledge and understanding of these topics and their ability to apply them in real-world situations. Passing the exam is a requirement for obtaining the CIPS Level 4 Diploma in Procurement and Supply. |
| Passing Score required | I don't have access to the latest passing score required in CIPS L4M5 Exam. The passing score for CIPS exams is typically set by the exam board and may vary from one exam to another. It is best to check with the CIPS website or contact their customer service for the latest passing score requirements. |
| Competency Level required | I don't have personal experience or knowledge about competency levels required for CIPS L4M5 exam. However, based on the information available on the CIPS website, the CIPS L4M5 exam is designed for procurement professionals who have a good understanding of procurement principles and practices and have experience in managing procurement activities. The exam covers topics such as procurement strategy, supplier selection and management, contract management, and risk management. Therefore, candidates are expected to have a good level of knowledge and experience in procurement to pass the exam. |
| Questions Format | I don't have access to the specific questions in the CIPS L4M5 exam. However, based on the exam syllabus, the exam is likely to have a mix of multiple-choice, short answer, and essay questions. The questions will test the candidate's knowledge and understanding of procurement and supply chain management concepts, principles, and practices. The exam may also include case studies and scenarios that require the candidate to apply their knowledge to real-world situations. |
| Delivery of Exam | I do not have access to the specific details of the CIPS L4M5 exam. However, based on my research, the delivery type of the CIPS L4M5 exam may vary depending on the exam provider and location. It may be offered as a paper-based exam or a computer-based exam. Some exam providers may also offer remote proctoring options for online exams. It is best to check with the exam provider for specific details on the delivery type of the CIPS L4M5 exam. |
| Language offered | The CIPS L4M5 exam is focused on procurement and supply management and covers topics such as procurement strategy, supplier management, contract management, and negotiation skills. The language used in the exam is likely to be technical and industry-specific, with a focus on procurement terminology and concepts. It is important for candidates to have a strong understanding of procurement and supply management principles and be able to communicate effectively in written and verbal formats. |
| Cost of exam | I do not have access to current pricing information for the CIPS L4M5 exam. It is best to check the official CIPS website or contact their customer service for the most up-to-date pricing information. |
| Target Audience | The target audience for CIPS L4M5 (Managing Contracts and Relationships) includes professionals who are involved in procurement and supply chain management, contract management, and vendor management. This may include: 1. Procurement and supply chain managers 2. Contract managers 3. Vendor managers 4. Project managers 5. Legal professionals involved in contract management 6. Business owners and entrepreneurs 7. Procurement and supply chain consultants 8. Government procurement officials 9. Non-profit organizations involved in procurement and supply chain management 10. Anyone interested in developing their skills and knowledge in managing contracts and relationships in procurement and supply chain management. |
| Average Salary in Market | I don't have access to the current market data. However, according to the CIPS Global Salary Survey 2020, the average salary for a CIPS Level 4 and 5 certified professional in the UK is £47,000 per annum. However, the salary may vary depending on the industry, location, and experience of the individual. |
| Testing Provider | I do not have the ability to provide CIPS L4M5 exam for testing. However, you can contact the Chartered Institute of Procurement and Supply (CIPS) directly to inquire about exam availability and testing procedures. |
| Recommended Experience | I do not have personal experience, but I can provide you with the recommended experience for CIPS L4M5 exam. The recommended experience for CIPS L4M5 exam includes: 1. A minimum of two years of experience in a procurement or supply chain role. 2. Knowledge of procurement and supply chain management principles, practices, and techniques. 3. Understanding of the procurement process, including sourcing, negotiation, and contract management. 4. Familiarity with procurement-related laws and regulations. 5. Knowledge of supplier management and performance measurement. 6. Understanding of risk management and mitigation strategies. 7. Familiarity with ethical and sustainable procurement practices. 8. Experience in managing procurement projects and teams. 9. Knowledge of procurement technology and systems. 10. Understanding of financial management and budgeting. It is important to note that these are only recommended experiences, and candidates may still be eligible to take the exam without meeting all of these requirements. However, having these experiences can help prepare candidates for the exam and ensure they have the necessary knowledge and skills to succeed in a procurement or supply chain role. |
| Prerequisite | I don't have access to the latest information on CIPS L4M5 exam. However, based on my research, the prerequisites for CIPS L4M5 exam may vary depending on the country or region where the exam is being offered. Generally, candidates are required to have completed the CIPS Level 4 Diploma in Procurement and Supply or an equivalent qualification. Additionally, candidates may need to have relevant work experience in procurement and supply chain management. It is recommended to check with the CIPS website or local CIPS branch for the latest information on the prerequisites for the CIPS L4M5 exam. |
| Retirement (If Applicable) | It is recommended to check with the official website of CIPS or contact their customer service for the most up-to-date information. |
| Certification Track (RoadMap): | CIPS (Chartered Institute of Procurement and Supply) is a professional body that offers certification programs for procurement and supply chain professionals. The CIPS L4M5 exam is likely a certification exam for individuals who have completed the Level 4 Diploma in Procurement and Supply. The certification track or roadmap for this exam may include completing the Level 4 Diploma in Procurement and Supply, gaining relevant work experience, and passing the CIPS L4M5 exam to become a certified procurement and supply professional. It is recommended to visit the official CIPS website for the latest information on their certification programs and exams. |
| Official Information | https://www.cips.org/learn/qualifications/diploma-in-procurement-and-supply/commercial-negotiation-l4m5/ |
| See Expected Questions | CIPS L4M5 Expected Questions in Actual Exam |
| Take Self-Assessment | Use CIPS L4M5 Practice Test to Assess your preparation - Save Time and Reduce Chances of Failure |
| Section | Weight | Objectives |
|---|---|---|
| 1.0 Understand key approaches in the negotiation of commercial agreements with external organisations | 1.1 Analyse the application of commercial negotiations in the work of procurement and supply • Definitions of commercial negotiation • Negotiation in relation to the stages of the sourcing process • Sources of conflict that can arise in the work of procurement and supply • Team management and the influence of stakeholders in negotiations 1.2 Differentiate between the types of approaches that can be pursued in commercial negotiations • Collaborative win-win integrative approaches to negotiations • Distributive win-lose, distributive approaches to negotiation • Pragmatic and principled styles of negotiation • Setting targets and creating a best alternative to a negotiated agreement (BATNA) 1.3 Explain how the balance of power in commercial negotiations can affect outcomes • The importance of power in commercial negotiations • Sources of personal power • Organisational power: comparing the relative power of purchasers and suppliers • How suppliers gather information on purchasers • How purchasers can improve leverage with suppliers 1.4 Identify the different types of relationships that impact on commercial negotiations • The relationship spectrum • Building relationships based on reputation, and trust • Repairing a relationship |
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| 2.0 Know how to prepare for negotiations with external organisations | 2.1 Describe the types of costs and prices in commercial negotiations • Types of costs: direct and indirect, variable and fixed • Break-even analysis: cost volume profit formulae • Costing methods such as absorption, marginal or variable and activity based costing • Volumes, margins and mark ups and their impact on pricing • Negotiating prices 2.2 Contrast the economic factors that impact on commercial negotiations • The impact of microeconomics and market types on commercial negotiations • Macroeconomics and its influence on commercial negotiations • Sources of information on micro and macro economics 2.3 Analyse criteria that can be used in a commercial negotiation Criteria such as: • Setting objectives and defining the variables for a commercial negotiation • The bargaining mix • Positions and interests • Openings and presenting issues 2.4 Identify the resources required for a negotiation • Choice of location • Involving appropriate colleagues • Use of telephone, teleconferencing or web based meetings • Room layout and surroundings |
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| 3.0 Understand how commercial negotiations should be undertaken | 3.1 Identify the stages of a commercial negotiation • Defining the stages of a negotiation such as: - preparation, opening, testing, proposing, bargaining, agreement and closure • How behaviours should change during the different stages of a negotiation 3.2 Appraise the key methods that can influence the achievement of desired outcomes • The use of persuasion methods • The use of tactics to influence the other party 3.3 Compare the key communication skills that help achieve desired outcomes • Types of questions • Effective listening • Push and pull behaviours • Nonverbal communication • The influence of culture in commercial negotiations • The use of emotional intelligence in commercial negotiation 3.4 Analyse how to assess the process and outcomes of negotiations to inform future practice • Reflecting on performance • Opportunities for improvement and development • Protecting relationships after the negotiation |
TESTED 18 May 2024
