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CIPS Level 4 Diploma in Procurement and Supply Defining Business Needs

Defining Business Needs

Last Update Aug 5, 2026
Total Questions : 317

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Questions 2

John has been asked to develop a business case before obtaining approval to purchase a large piece of capital equipment for a glove manufacturing unit. Is this the right thing to do?

Options:

Yes, because this will help compare alternatives and options

No, because risk consideration is not John's responsibility

Yes, because this will assist the purchase order

No, because this can lead to business-focused thinking

Discussion 0

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Questions 3

A manufacturing organisation has initiated a project focusing on costs, with a view to making significant savings. A procurement manager is leading the project. The initial data sources have focused on the cost of raw materials. Which of the following describes this cost?

Options:

Direct, variable costs

Indirect, variable costs

Direct, fixed costs

Indirect, fixed costs

Discussion 0

Questions 4

Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?

Options:

Source this group of products from only one supplier

Find an alternative source to secure supply

Assign some of procurement jobs to user department

Form partnership relationship with the current supplier

Discussion 0

Questions 5

Synergy Ltd is a fast-growing tool and hardware retailer. The company's customer services team has been using Excel worksheets to manage customer relationships. When the company is expend-ing its market presence, this way of working leads to poorer customer services as the database is scattered around in spreadsheet, leading to patchy and inconsistent conversations with customers. The company decides to purchase a CRM system. What requirement should Synergy's procurement team take into account in the specification for CRM system?

Options:

Total number of the supplier's employees

The ability to import bulk data from Excel spreadsheets

The relative size of the potential suppliers to Synergy

The form and reference number of the purchase order

Discussion 0

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