IMPORTANCE OF CIPS L4M2 CERTIFICATION EXAM

Importance of CIPS L4M2 Certification Exam

Importance of CIPS L4M2 Certification Exam

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Tags: Latest L4M2 Exam Format, L4M2 Lab Questions, Valid L4M2 Exam Cost, New L4M2 Exam Prep, L4M2 Free Updates

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If you are preparing for the Defining Business Needs (L4M2) exam dumps our L4M2 Questions help you to get high scores in your Defining Business Needs (L4M2) exam. Test your knowledge of the Defining Business Needs (L4M2) exam dumps with CramPDF Defining Business Needs (L4M2) practice questions. The software is designed to help with Defining Business Needs (L4M2) exam dumps preparation. Defining Business Needs (L4M2) practice test software can be used on devices that range from mobile devices to desktop computers.

To prepare for the CIPS L4M2 Exam, candidates are advised to review the official exam syllabus, which outlines the key topics and concepts that will be covered in the test. They can also take advantage of various study materials, such as textbooks, online courses, and practice exams, to help them prepare for the exam.

>> Latest L4M2 Exam Format <<

L4M2 Lab Questions - Valid L4M2 Exam Cost

This is a crucial part of your study to know your mistakes and overcome them before the CIPS L4M2 final test. Customizable test sessions allow you to modify the setting of the L4M2 mock test according to your training needs. Both CIPS L4M2 Practice Tests desktop and web-based create a scenario that gives an exact feeling of the CIPS L4M2 real test.

Procurement professionals who pass the CIPS L4M2 certification exam demonstrate a deep understanding of the principles and practices of defining business needs. Defining Business Needs certification is ideal for professionals who are involved in procurement strategy development, supplier selection, and contract management. The CIPS L4M2 certification exam is recognized internationally and is highly valued by employers in the procurement and supply chain industry.

CIPS L4M2 Exam is a key qualification for procurement professionals who want to progress to more senior roles within their organization. It provides a comprehensive understanding of the procurement process and the skills required to develop effective procurement strategies. L4M2 exam is also recognized by employers as a valuable qualification for procurement professionals.

CIPS Defining Business Needs Sample Questions (Q169-Q174):

NEW QUESTION # 169
When procuring a machinery, at which stage buyer must check whether it is working to the stand-ards set out in the design specification?

  • A. Installation
  • B. Maintenance and repair activities
  • C. Manufacture
  • D. Customer support

Answer: A

Explanation:
Through-life Management involves the life-cycle management of the products, services and activities required to deliver a fully integrated capability to the customer, while reducing the cost of ownership for the customer.
Diagram, table Description automatically generated

Source: Andrew Graves
The installation stage occurs in In-Service Operations. At this stage, the machinery is shipped and installed on the buyer's premises and check to ensure that it is working to the standards set out in the design specification.


NEW QUESTION # 170
Interserve is a construction contractor in UK. When receiving a huge and complex project, Inter-serve's procurement manager assesses the risks by quantifying them and recommends other stake-holders to plan mitigating actions. Is the procurement manager's action justified?

  • A. No, because embedding the risk into pricing will decrease the company's competitiveness
  • B. No, because no risks can be quantified, therefore the procurement manager's action is impossible.
  • C. Yes, because all the risks should be quantified and eliminated completely before they happen
  • D. Yes, because procurement manager needs to assess the risks to prioritise and mitigate any potential risks

Answer: D

Explanation:
Assessing the risks by quantifying them should be done. Even with qualitative risk assessment, quantifying is still important since risks need to be prioritised.
Risk assessment can be qualitative or quantitative. Perform qualitative and perform quantitative risk analysis are two processes within the project risk management knowledge area, in the planning process group. While qualitative risk analysis should generally be performed on all risks, for all projects, quantitative risk analysis has a more limited use, based on the type of project, the project risks, and the availability of data to use to conduct the quantitative analysis.
Qualitative Risk Analysis
A qualitative risk analysis prioritises the identified project risks using a pre-defined rating scale. Risks will be scored based on their probability or likelihood of occurring and the impact on project objectives should they occur.
Probability/likelihood is commonly ranked on a zero to one scale (for example, .3 equating to a 30% probability of the risk event occurring).
The impact scale is organizationally defined (for example, a one to five scale, with five being the highest impact on project objectives - such as budget, schedule, or quality).
A qualitative risk analysis will also include the appropriate categorization of the risks, either source-based or effect-based.
Quantitative Risk Analysis
A quantitative risk analysis is a further analysis of the highest priority risks during a which a numerical or quantitative rating is assigned in order to develop a probabilistic analysis of the project.
A quantitative analysis:
- Quantifies the possible outcomes for the project and assesses the probability of achieving specific project objectives
- Provides a quantitative approach to making decisions when there is uncertainty
- Creates realistic and achievable cost, schedule or scope targets
In order to conduct a quantitative risk analysis, you will need high-quality data, a well-developed project model, and a prioritized lists of project risks (usually from performing a qualitative risk analysis).


NEW QUESTION # 171
A procurement team is categorising their purchased items into four quadrants of Kraljic's supply chain portfolio matrix. They realise that there are some low-value items which come from very few suppliers in the market. The organisation is critically dependent on these suppliers. The team plans to reduce the dependence by finding alternative sources. Is this a right course of action?

  • A. No, there is no way to escape this dependency
  • B. No, the organisation should run competitive biddings to exploit the competition
  • C. Yes, the organisation needs to reduce the supply risks
  • D. Yes, this action will dramatically increase the supplier's bargaining power

Answer: C

Explanation:
According to Kraljic portfolio matrix, the low-value items with high supply risk are bottleneck items.

The purchasing strategy that is commonly recommended for these products is primarily based on acceptance of the dependence and reduction of the negative effects of the unfavourable position. An alternative strategy suggested by purchasing practitioners is to find other suppliers and move towards the non-critical quadrant.
- Accept dependence, reduce negative consequences: The main focus of this strategy is to assure supply, if necessary even at additional cost. Examples of this strategy are keeping extra stocks of the materials concerned or developing consigned stock agreements with suppliers. By performing a risk analysis firms can identify the most important bottleneck products and consider the implications. A possible action for dealing with unexpected bad dependence positions for certain products is to employ contingency planning.
- Reduce dependence and risk, find other solutions: This strategy is geared towards reducing the dependence on the supplier. The most common way to achieve this is to broaden the specifications of the product or to search for new suppliers.
The procurement team in the scenario has selected reducing dependency by finding alternatives. This is a right strategy for bottleneck item.
Reference:
- CIPS study guide page 82-84
- Purchasing strategies in the Kraljic matrix-A power and dependence perspective, Marjolein C.J. Caniels, Cees J. Gelderman LO 2, AC 2.1


NEW QUESTION # 172
Which of the following is a challenge of making a business case for straight re-buys?

  • A. Effective inventory control
  • B. Identifying suitable suppliers
  • C. Research of procurement process
  • D. Terms and conditions

Answer: A

Explanation:
For straight re-buy, the specifications for the products are known. Generally, there will be an existing contract with supplier in place. The business need is challenged annually, only on the annual demand. So effective inventory control will help procurement successfully manage straight re-buy.


NEW QUESTION # 173
The procurement officer for Hunter Manufacturing has been tasked to procure a new manufacturing software management system. They have consulted all relevant internal stakeholders and have the following high-level requirements: flexibility throughout the project, and the supplier to recommend the best solutions for building the system. Which type of specification should be developed?

  • A. Design
  • B. Technical
  • C. Performance
  • D. Conformance

Answer: C


NEW QUESTION # 174
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L4M2 Lab Questions: https://www.crampdf.com/L4M2-exam-prep-dumps.html

P.S. Free & New L4M2 dumps are available on Google Drive shared by CramPDF: https://drive.google.com/open?id=1c_Lx_Fiy808aov7sntsh4LUEAM9ptz-t

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