Expert Answers to CIPS Exam L4M5 Questions

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CIPS Level 4 Diploma in Procurement and Supply Commercial Negotiation

Commercial Negotiation

Last Update Aug 2, 2025
Total Questions : 317

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Questions 2

Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?

Options:

No, purchasing can negotiate other details of the purchase requisition even where value analysis is absent

No, value analysis is a very technical process that requires the expertise of engineering and financial analysts

Yes, the role of purchasing is to add value to the purchase, and therefore every purchase requisition must go through a team value analysis

Yes, value analysis is the single most important responsibility of procurement in the processing of repeat requisitions

Discussion 0

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Questions 3

Different types of relationships impact on commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?

Options:

Legitimate power

Personality power

Powerful colleagues

Friends power

Discussion 0

Questions 4

AB Manufacturing seeks to buy a new materials resource planning (MRP) software system. At the ‘defining the business need’ stage of the procurement cycle, the procurement manager ensured that all the internal stakeholders involved had the power to contribute and sign off on requirements. For the MRP system, the procurement manager consulted the head of production planning of AB Manufacturing. The head of production contributed to demand levels, existing manufacturing planning, and existing staff levels. What type of power does the head of production demonstrate?

Options:

Expert

Legitimate

Referent

Reward

Discussion 0

Questions 5

A garden furniture supplier currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation. What would be an appropriate response from the procurement manager?

Options:

Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating

Accept the offer as this would save time. A supplier visit and negotiation could be done at the same time

Decline the offer as it would take too much time to go and visit the supplier

Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage because they will be in a familiar environment

Discussion 0

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