Free L4M3 Exam Braindumps (page: 24)

Page 24 of 48

Which of the following should be done by procurement professionals right after obtaining a pre- written specification for a critical item so that the added value will be the greatest?

  1. Evaluate tender or quotation
  2. Select the best supplier
  3. Challenge the used specification
  4. Issue invitation to tender or request for quotation

Answer(s): C

Explanation:

A previously used specification must always be robustly challenged to see how well it fits the proposed circumstances. Aspects which appear not to fit should be analysed to understand why they were included in the sample specification and whether this changes the view on whether or not they should be omitted or changed.


Reference:

CIPS study guide page 80 LO 2, AC 2.1



A fashion company is drafting a specification for an order in next year. The company wants to expand its supply base in low cost countries. The procurement department is considering applying standard ISO 3759 on method for the preparation, marking and measuring of textile fabrics, garments and fabric assemblies for use in tests for assessing dimensional change after a specified treatment.
Which of the following should be taken into account when embedding this standard into the specification?

  1. Date of publication
  2. Supplier selection
  3. Type of specification
  4. Legality

Answer(s): A

Explanation:

Standards are incorporated into specifications by simply cross-refering to the relevant standard by its number and date of publication. It is important to include the date of publication. All standards are reviewed from time to time and their content changes. The absence of the publication date will lead to disrupts over which version of the standard actually applies to the contract.


Reference:

CIPS study guide page 85-89
LO 2, AC 2.1



A tire manufacturer entered into a contract with a distributor. In the contract, the distributor is prohibited from selling the tire under the price list. The distributor must pay $5 for each tire sold in breach. The amount of $5 is known as...?

  1. Penalty
  2. Quantum meruit
  3. Liquidated damages
  4. Caveat Emptor

Answer(s): C

Explanation:

This scenario is in fact based on a famous case law: Dunlop Pneumatic Tyre Company v New Garage & Motor co [1915] AC 79. In this case law, the House of Lords identified the clause as liquidated damages, and therefore enforceable.
However, if this case had happened in 2015 or afterwards, there would be some legal issues:
- The price agreement is prohibited by Competition Act 1998
- If the agreement is allowed by Competition Act, as in the case Cavendish Square Holding BV (Appellant) v Talal El Makdessi (Respondent), the clause can also be identified as a penalty and it is still enforceable.


Reference:

CIPS study guide page 158-159 LO 3, AC 3.2



Royal Naval Hospital at Rockstown, Anyport manages a fleet of nine ambulance vehicles. During busy periods, it becomes very difficult to keep track of the location of each ambulance (and the nature of their journey). Continual problems lead to the proposal for a new control system (ERNS). For this ERNS project, the procurement department has drafted a specification in which only a bullet point list of basic requirements was written down. The procurement manager understands that the specification should be developed more specifically but a cross functional team from the Hospital could not do that. A senior buyer suggests that some of Hospital's pre-qualified suppliers could support them in developing the specification.
Which of the following should be a priority approach of procurement department in developing dialogue with those suppliers about specification development?

  1. Internal discussion
  2. General networking
  3. One-to-one meeting with the suppliers
  4. Request for quotation from the suppliers

Answer(s): C

Explanation:

The procurement team has drafted basic requirements in the specification. They will need to develop it further and more specific. Developing market dialogue with supplier is a good solution. There are number of approaches which can be taken to engage with suppliers:
- General meetings: buyer meets supplier at a networking event (such as trade show) or social media. These discussions are unlikely to deliver very specific information.
- One-to-one meetings: This will be most likely to deliver direct input into specification development and supplier-specific product development information.
- Group visits
- Meet-the-buyer events
- Formal negotiations or competitive
The answer for this QUESTION should be One-to-one meeting.


Reference:

CIPS study guide page 83-84 LO 2, AC 2.1



Page 24 of 48



Post your Comments and Discuss CIPS L4M3 exam with other Community members:

Tina commented on September 20, 2024
I need to emphasis that this exam is extremely HARD! So prepare well or else you will fail. I got lucky and passed mine. But I used these dumps and some other sources.
Singapore
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Evangelista commented on June 30, 2024
the questions assist me to read and understand the material
UNITED KINGDOM
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Leungoinalame Gobuiwang commented on May 01, 2024
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BOTSWANA
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Leungoinalame Gobuiwang commented on May 01, 2024
It bid challenging but I think I can manage
BOTSWANA
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Leungoinalame Gobuiwang commented on May 01, 2024
I think the L4M3 it needs a person to read to understand
BOTSWANA
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Rudasingwa Innocent commented on March 13, 2024
This prepares good managers for procurement
Anonymous
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Rudasingwa Innocent commented on March 13, 2024
This is good since it prepares the future managers for procurement.
Anonymous
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