CIPS L4 Diploma

L4M2 Defining Business Needs

Comprehensive practice questions, covering each learning outcome of the module, with correct answer explanations. Created by our expert tutors to replicate the style and content of questions you will find in your exam.

Course curriculum

  • 1

    Chapter 1 - Understand how to develop a business case for requirements to be sourced from external suppliers

    • LO|1.1 Analyse how business needs influence procurement decisions

    • LO|1.2 Identify how costs and prices can be estimated for procurement activities

    • LO|1.3 Analyse the criteria that can be applied in the creation of a business case

    • LO|1.4 Interpret financial budgets for the control of purchases
  • 2

    Chapter 2 – Understand market management in procurement and supply

    • LO|2.1 Analyse the different types of markets utilised by procurement and supply

    • LO|2.2 Compare the competitive forces that influence markets

    • LO|2.3 Contrast the breakdown between direct and indirect costs and the types of data that can provide information on cost and price
  • 3

    Chapter 3 – Understand the use of specifications in procurement and supply

    • LO|3.1 Analyse the types of specifications used in procurement and supply and the sources of information that can be used to help create them

    • LO|3.2 Identify sections of specifications for through-life contracts

    • LO|3.3 Identify the risks that can result from inadequate specifications and mitigation approaches

    • LO|3.4 Identify opportunities to regulate short- and longer-term specifications