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Free PDF 2025 High Hit-Rate CIPS L4M2: Defining Business Needs Valid Vce

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The Chartered Institute of Procurement and Supply (CIPS) is a globally recognized professional body for procurement and supply chain management. CIPS offers various qualifications to help individuals build their careers in procurement and supply chain management. One of the qualifications offered by CIPS is the Level 4 Diploma in Procurement and Supply.

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2025 L4M2: Defining Business Needs Useful Valid Vce

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CIPS Defining Business Needs Sample Questions (Q168-Q173):

NEW QUESTION # 168
How can a procurement department meet the business needs when purchasing leverage items?

A. Developing buying power such as competitive tendering
B. Developing effective contracts such as call-off contracts
C. Developing efficient order processes such as e-procurement
D. Developing long-term relationships such as partnerships

Answer: A

NEW QUESTION # 169
An IT department has tasked procurement to help produce a conformance specification for new company laptops. Which factor is common within a conformance specification?

A. Meets the specification standard
B. Allows flexibility in the offering
C. Tends to be short and specific
D. Meets the operational requirements

Answer: A

Explanation:
Detailed Explanation:Conformance specifications outline specific technical standards or requirements that a product must meet. These ensure uniformity and compliance but do not allow flexibility for suppliers to innovate. Reference: CIPS Level 4, Specification Standards.

NEW QUESTION # 170
When procuring an IT equipment, at which stage the buyer's expectations are translated into a technical specification?

A. Customer support
B. Design
C. Installation
D. In-service support

Answer: B

Explanation:
IT equipment is typically linked with through-life contracts. This type of contract not only deal with the specification and the price of a machinery, but also other stages such as design, manufacture, installation, in- service support, decommission and disposal. Among these stages, the design stage is when buyer's requirements are translated into technically correct specification.

NEW QUESTION # 171
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?

A. Total number of the supplier's employees
B. The form and reference number of the purchase order
C. The relative size of the potential suppliers to Synergy
D. The ability to import bulk data from Excel spreadsheets

Answer: D

Explanation:
The purpose of this Question:
to actionable requirements before communicating with the suppliers. The scenario suggests that Synergy Ltd's customer services team is using Excel spreadsheets, they lack a centralised customer database. This leads to problems in communications with customers.
A CRM system can solve the communication problem. But a Question: 100
will the previous data be imported? If the CRM system can support bulk import from Excel tables, it will save a lot of time.
Reference:
LO 1, AC 1.1

NEW QUESTION # 172
GSC Ltd is a manufacturer of car parts. To accommodate growing demands of electric cars, the company is developing a new component which requires different type of steel. The project team estimates that the component will be ready for production in 1.5 years. Until then, they need to keep the production busy.
After checking the inventory records, the production team sees that the company has 3 months of stock. The lead time for each batch is two months. Which of the following should be a priority ac-tion of the company?

A. Make a call-off order to current supplier
B. Create new specification to current supplier
C. Create new specification to new supplier
D. Standardise the specification

Answer: A

Explanation:
The scenario is very long with many distracting data. Students need to read carefully and use their experience to solve this problem.
The company is developing a new component which requires different type of material. But this component will not be available for mass production in 1.5 years. This means the company still needs to produce the current components with current materials until the development is finished. They must continue purchase the materials from current supplier through call-off orders. This situation is an example of straight re-buy.

NEW QUESTION # 173
......

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