CIPS Updated L4M4 Exam Questions and Answers by dana

ITT is appropriate for complex/high-value procurements needing detailed submissions and robust evaluation. RFQ suits simple, well-specified, lower-value buys where price comparison is primary.

Where price leverage is limited, buyers should seek value-adds: extended warranties, service levels, training, spares, delivery schedules, sustainability commitments, or risk-sharing. This aligns with total value and ethical outcomes beyond headline price.

Explanation

ISO 20400 is sustainable procurement.

14000 is environment

9001 is quality management

27001 is information security

In commodity markets, shortages combined with sustained demand drive price increases. The buyer loses bargaining power, as suppliers can charge higher rates. Negotiating downward is unrealistic; instead, buyers should manage risk through hedging, forward contracts, or alternative sourcing. CIPS notes that responsible sourcing requires understanding market dynamics and their ethical implications (e.g., food security, affordability). The organisation must manage stakeholder expectations about pricing rather than assume negotiation leverage. This reflects the implications of market volatility in global supply chains.