Use Real L4M4 Dumps - CIPS Correct Answers updated on 2026
CIPS Level 4 Diploma in Procurement and Supply L4M4 Exam Practice Dumps
CIPS L4M4 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
NEW QUESTION # 63
When would a procurement professional use the Pareto principle?
- A. when looking at whole-life-cycle costs
- B. when considering changing a supplier
- C. when appraising a supplier
- D. when conducting a value analysis
Answer: B
Explanation:
The Pareto Principle can be used when considering changing a supplier. It helps to categories suppliers by how strategically important the item is that they provide to the business.
NEW QUESTION # 64
Which of the following incoterms relate specifically to transporting items over water?
- A. cost and freight
- B. delivered at place
- C. delivered duty paid
- D. ex works
Answer: A
Explanation:
cost and freight is specific to transport over water. The others relate to all types of transportation.
Incoterms_2020_chart | Intersped
Some students report a lot of questions on Incoterms in the exam, some say they only had 1. It real-ly is luck of the draw.
NEW QUESTION # 65
Yolo Inc. have recently run a tender opportunity to find a suitable supplier of yoyos and they have received a number of bids. The supplier will become a strategic partner to the business as yoyos are vital to the success to Yolo Inc. The tender asked for both price submissions and had a number of quality questions. Eamon is the Procurement Manager of Yolo Inc and is responsible for selectingthe most appropriate supplier. How should Eamon appraise the bids?
- A. evaluate the bids himself as this is a strategic purchase
- B. evaluate the bids himself as this is a complex requirement
- C. organise a cross-functional team to assess the bids as people from other departments may have important information and experience of yoyos
- D. organise a cross-functional team of procurement personnel as they will have experience in assessing price and quality of bids
Answer: C
Explanation:
Eamon should use a cross-functional team (this rules out two of the options). The purpose of using a cross-functional team is to use the knowledge of people from other departments as they may better understand the service required and help assess any technical questions. Therefore a cross-functional team of procurement personnel, isn't cross-functional (they're all the same function). Yoyos is a bit of a silly example, the exam questions are a little more serious- but the learning outcome is the same; use a cross-functional team to evaluate bids.
NEW QUESTION # 66
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will spread across multiple doctors' practices and community health centres. Ramesh has reviewed different tender approaches and concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?
- A. Suppliers responding to the tender are pre-qualified
- B. It is only relevant when there are few suppliers in the market
- C. Direct negotiations occur prior to suppliers submitting their offer
- D. The contract will be awarded strictly on pricing criteria
Answer: A
Explanation:
In a restricted tender process, only pre-qualified suppliers are invited to bid, ensuring that participating suppliers have met necessary qualifications. This approach helps in managing high-value contracts by focusing on capable suppliers. Ethical and responsible sourcing in the public sector demands supplier pre- qualification to ensure compliance, transparency, and quality.
NEW QUESTION # 67
A buyer for a large manufacturing organisation is assessing a sole-supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole-supplier proposal?
- A. Yes. The buyer can negotiate on aspects such as after-sales service
- B. No. The buyer must make the decision based on the existing information
- C. No, because a buyer has no leverage over a sole supplier
- D. Yes, but only if the buyer decides to re-start the tender opportunity
Answer: A
Explanation:
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.
Reference: CIPS L4M4 Study Guide (v2): LO "Application" - value analysis/negotiation with limited competition; non-price value levers and responsible outcomes.
NEW QUESTION # 68
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
- A. Yes, you should follow the same procurement process irrespective of the circumstances
- B. Yes, a weighted points system is always the best way to evaluate suppliers' bids
- C. No, it is not necessary, as in this case, you are mainly concerned with price
- D. No, you should only use a weighted points system for high-spend procurement
Answer: C
Explanation:
For low-value, routine purchases where price is the primary consideration, employing a weighted points system may not be necessary. Such systems are more suitable for complex procurements where multiple factors, such as quality, delivery, and sustainability, need to be evaluated alongside price. In the case of purchasing standard items like pens, a straightforward price comparison is typically sufficient.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3.2: The use of weighted points systems for assessment
NEW QUESTION # 69
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
- A. yes- because a low rating would have a negative impact on the company's reputation
- B. no- because a low rating would not affect the quality of the products supplied
- C. yes- because a low rating would indicate the supplier is financially unstable
- D. no- because a low credit rating would have a negative impact on the supply chain
Answer: C
Explanation:
The correct answer is 'yes- because a low credit rating would indicate the supplier is financially un-stable'.
The two options beginning with no should automatically be discounted. The other option is incor-rect because credit ratings are private and would therefore not affect reputation.
NEW QUESTION # 70
What are the risks of outsourcing?
* Loss of control of project
* Loss of assets
* Loss of future business opportunities
* Loss of private information
- A. 1 and 4 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: A
Explanation:
Loss of control and loss of private information are significant risks in outsourcing. Responsible sourcing involves mitigating these risks by setting clear agreements, monitoring, and safeguarding sensitive information to maintain control over outsourced activities.
NEW QUESTION # 71
When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?
- A. yes- the public sector should advertise the opportunity as a call for competition
- B. no- buyers in the public sector do not source strategic items
- C. yes- the public sector should advertise through the Freedom of Information Act
- D. no- buyers can approach known contractors
Answer: A
Explanation:
The correct answer is 'yes- the public sector should advertise as a call for competition'. They do this in the Official Journal of the European Union (OJEU). Public Sector has to be transparent about everything and treat all suppliers equally. So they can't just approach the ones they like.
In the study guide it says OIEU and this is a typo. It's OJEU.
What is The OJEU in 2 minutes or less (trackerintelligence.com)
NEW QUESTION # 72
Which of the following is an example of intracompany trading? Select TWO
- A. cleverness
- B. two companies join together to create a new product
- C. two companies owned by the same entity conduct business
- D. a manufacturer in the UK buys raw copper from a supplier in Chile
- E. two departments within the same company collaborate on a project
Answer: C,E
Explanation:
Intracompany trading is when two departments in the same company do trading. AND when two companies owned by the same parent company do trading.
INTRA means 'within' - so it's doing business with yourself.
NEW QUESTION # 73
A buyer might opt to do an 'Invitation to Tender' (ITT) rather than a 'Request for Quotation' (RFQ) process because ...
- A. Time is of the essence and decisions need to be made quickly without additional stakeholder involvement
- B. The nature of the goods or services being purchased are complex and high value
- C. The contract will be low value and there are many suppliers, therefore a simpler approach is required
- D. The supplier market is an oligopoly where a few large suppliers dominate the market
Answer: B
Explanation:
An Invitation to Tender (ITT) is used when requirements are complex, high-value, or strategic, requiring detailed supplier submissions, robust evaluation, and structured governance. RFQs are better for low-value, straightforward purchases where price is the main factor. ITTs ensure fairness, transparency, and comprehensive evaluation when the stakes are high. It is not chosen simply because of oligopolies or time pressure. Responsible sourcing requires matching the sourcing process to the complexity and risk of the procurement, ensuring appropriate competition and governance.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - sourcing procedures and their application.
NEW QUESTION # 74
Which of the following would you expect to find in an Invitation to Tender? Select THREE
- A. deadline(Correct)
- B. risk assessments
- C. awarding body
- D. qualifications required
- E. pricing schedule
Answer: C,D
Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn't find pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)
NEW QUESTION # 75
A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?
- A. investigate the low bid
- B. award the contract to the low bid as this represents better value for money
- C. award the bid a 0 for price
- D. automatically dismiss the low bid
Answer: A
Explanation:
You should investigate automatically low tenders by clarifying the bid with the supplier. It could be they have misunderstood the requirement. Or the bid could be genuine and they can really provide best value for money.
But without enquiring, you just don't know.
NEW QUESTION # 76
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
- A. do an Acid Test
- B. use the Return on Investment Ratio
- C. work out the supplier's EBITDA
- D. work out the supplier's gearing ratio
Answer: D
Explanation:
Greg needs to use a gearing ratio. Gearing is a measure of how the business is being funded and is based on the ratio of debt to equity Gearing comes up a lot in the exam. Also make sure you know what Return on Investment, Acid Test and EBITDA are.
Return on Investment (ROI): How to Calculate It and What It Means (investopedia.com) EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com) Acid-Test Ratio: Definition, Formula, and Example (investopedia.com)
NEW QUESTION # 77
A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year's purchase orders and has been asked to confirm the month of order placement. The buyer has found three trends:
* In January and April, the supplier's local currency is stronger
* November typically has the lowest demand
* May typically has the highest demand
Which month should the buyer plan to place the purchase order?
- A. April
- B. May
- C. January
- D. November
Answer: D
Explanation:
Ordering in November, when demand is lowest, may allow the buyer to secure better pricing and availability, aligning with responsible sourcing by optimizing purchase timing to achieve cost savings and reliable supply.
NEW QUESTION # 78
An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
- A. Financial and environmental performance
- B. Innovation and creativity performance
- C. Procedure and process performance
- D. Quality and lead time and performance
Answer: A
Explanation:
The Triple Bottom Line framework evaluates an organisation's impact on social, environmental, and economic factors. Financial and environmental performance are critical components, along with social metrics, aligning with responsible sourcing goals to promote sustainability and ethical practices.
NEW QUESTION # 79
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.
- A. The existence of Total Quality Management (TQM) and a continuous improvement culture
- B. Certification to the management system ISO 9001
- C. The supplier's environmental impact analysis
- D. Certification to the management system ISO 14001
- E. The existence of policies and initiatives toward more sustainable packaging and materials
Answer: A,B
Explanation:
Total Quality Management (TQM) practices and ISO 9001 certification are indicators of a supplier's commitment to quality. Responsible sourcing evaluates these factors to ensure suppliers meet high-quality standards and continuous improvement expectations.
NEW QUESTION # 80
......
Get ready to pass the L4M4 Exam right now using our CIPS Level 4 Diploma in Procurement and Supply Exam Package: https://certification-questions.pdfvce.com/CIPS/L4M4-exam-pdf-dumps.html