CIPS L4M2 exam : Defining Business Needs

L4M2 Exam Simulator
  • Exam Code: L4M2
  • Exam Name: Defining Business Needs
  • Updated: Sep 07, 2025
  • Q & A: 239 Questions and Answers

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CIPS L4M2 exam simulator

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CIPS L4M2 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Commercial Negotiation: This section of the exam measures skills of Procurement Officers and focuses on negotiation strategies that lead to effective agreements. It covers negotiation types, stages, team dynamics, and communication techniques. Learners will also assess the economic and pricing factors that impact negotiation and apply practical frameworks for reaching favorable outcomes.
Topic 2
  • Defining Business Need:This section of the exam measures skills of Supply Chain Analysts and focuses on how to build a strong business case for externally sourced goods or services. It guides learners through estimating costs, understanding financial models, analyzing market conditions, and defining clear specifications. The section also covers various market forces and how specifications influence procurement success.
Topic 3
  • Ethical and Responsible Sourcing: This section of the exam measures skills of Supply Chain Analysts and emphasizes responsible decision-making when selecting suppliers. It covers sourcing options, analysis methods, and the ethical, environmental, and social standards required in procurement. Candidates will learn to align sourcing decisions with sustainability and governance frameworks.
Topic 4
  • Procurement and Supply in Practice: This section of the exam measures skills of Supply Chain Analysts and integrates all concepts from previous modules into real-world applications. It focuses on applying the full procurement cycle, analyzing supplier performance, managing whole-life costs, and implementing ESG principles. Learners will practice applying strategies across various sectors and industries to demonstrate holistic understanding and problem-solving in procurement.
Topic 5
  • Whole-Life Asset Management: This section of the exam measures skills of Procurement Officers and examines how to manage assets from acquisition through disposal. It includes inventory management, cost modeling, storage methods, and key technologies used in managing assets over their full lifecycle. Candidates also learn to consider sustainability, risk, and value for money in asset management decisions.

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/def%C4%B1ning-business-need

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