CIPS : L4M8 Questions & Answers

Last Updated: Oct 02, 2026

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CIPS L4M8 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Whole Life Asset & Cost Management25%- Total cost of ownership concept
  • 1. Hidden costs and supply chain risks
    • 2. Legal, environmental and waste management obligations
      • 3. Cross-functional collaboration and data use
        • 4. Purchase, operation, maintenance and disposal costs
          Topic 2: Sourcing Process & Supplier Management25%- Stages of strategic sourcing
          • 1. Creation of contract terms and specifications
            • 2. Supplier performance monitoring and development
              • 3. Supplier evaluation, selection and award
                • 4. Stakeholder engagement and communication
                  Topic 3: Application of Procurement Cycle25%- Key stages of procurement cycle in practice
                  • 1. Defining business needs and requirements
                    • 2. Contract formation and management
                      • 3. Market analysis and supplier research
                        • 4. Tendering and selection processes
                          Topic 4: Ethics, Responsibility & Compliance25%- Ethical and responsible sourcing application
                          • 1. CIPS Code of Conduct and professional standards
                            • 2. Regulatory compliance and ethical governance
                              • 3. Anti-bribery, corruption and human rights protection
                                • 4. Sustainability and ESG integration

                                  CIPS Procurement and Supply in Practice Sample Questions:

                                  Question #1

                                  Which type of power is most likely to be used in corruption?

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  The abuse of power within the supply chain can be linked to corruption. If individuals with seniority favor one supplier over another, they can exercise their power to award the contract to whoever they wish.
                                  According to CIPS code of conduct, this is not ac-ceptable.
                                  According to French and Raven, there are five types of power (Legitimate power, Re-ward, Expert, Referent and Coercive), and these powers can most likely be used in corruption.

                                  Question #2

                                  What is a cross function team?

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  A cross-function Team is the involvement of all departments that are in an organization to contribute knowledge, skills and innovation towards adding value to achieving the organization's strategic goal.
                                  Example, procurement, maintenance, marketing, finance, human resources working together in procurement activity to come up with the best strategy or selecting the supplier that best suit the organization.
                                  When working in a cross-functional team, members of the organization give support by believing in the end goal, assist during difficult time, help troubleshoot any issue, providing the required resources and sharing information

                                  Question #3

                                  In relation to the case study 'Walmart and H & M in spotlight regarding human rights in media ex-plain which human rights are not being granted to the workers.

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  Human rights are the statutory ways in which individual expects to and should be treated. Ethical and responsible sourcing includes the protection of human rights, not violating it.
                                  When young women are being bound into contracts where they work for two to three years, they are not being granted the right to freedom from slavery.
                                  Forcing these women to live in hostels under restrictions that prevent them from moving and are denied the opportunity to improve on their living condition is a violation of their right to life, liberty and personal security, also, their freedom from torture and degrading treatment is being violated.

                                  Question #4

                                  What are five recognized types of modern slavery?

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  Modern slavery is against ethical and responsible sourcing. Modern slavery is one of the areas to understudy for procurement professionals to carry out ethical and responsible sourcing and this is recognized in five ways.
                                  1. Human trafficking: The process of seeking, recruiting, transporting and exploiting individuals to work against their will. Often human trafficking includes violence, deception, and coercion.
                                  2. Bonded labour (debt bondage): This is an individual's promise to provide service through ex-ploitation as repayment, or part thereof, of a dept or other obligation.
                                  3. Forced labour: Work that people are forced to do with the treat of punishment if it is not carried out.
                                  4. Children labour: The exploitative and illegal employment of children.
                                  5. Domestic slavery: Individuals exploited through working in private households for little or no money in return for living accommodation.
                                  * Refer to the question column for response

                                  Question #5

                                  Explain the difference between bonded and forced labor.

                                  Reveal Solution  Discussion  0

                                  Correct Answer:

                                  See the answer in explanation.
                                  Explanation:
                                  Bonded labour and forced labour are among the five types of modern slavery which is against ethical and responsible sourcing.
                                  Bonded labour also known as debt bondage, this is an individual's promise to provide services through exploitation as repayment, or part of them, of a debt or other obligation whereas forced labour is work that people are forced to do with the heat of punishment if it is not carried out.
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