CIPS Level 2 Introductory Certificate In Purchasing And Supply

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CIPS Level 2 Introductory Certificatein Purchasing and SupplyCIPS e-testing handbook for candidatesJuly 2008

Dear CandidateCongratulations on registering for the CIPS Level 2 Introductory Certificatein Purchasing and Supply.This qualification will provide you with a good foundation of knowledgerelating to the key principles of purchasing and supply, through the fourelements of learning, included within the learning programme.At the end of your learning programme, you will undertake an e-test, whichwill be one hour long, and will be at the location identified by your CIPSapproved delivery centre.CIPS have provided this guide for you to better understand the e-testprocess and to help you see what to expect at the time of your examination.If you have any queries or questions relating to this handbook, then talk toyour centre programme leader and they will be able to help you.May CIPS take this opportunity to wish you every success as you embarkupon this programme and undertake your e-test assessment.Yours faithfully,Amanda O’BrienHead of EducationCIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 2 of 27

Contents PagePage No:1.0An introduction to CIPS42.0About the CIPS Level 2 IntroductoryCertificate in Purchasing and Supply43.0The CIPS Level 2 e-test94.0Terms and Conditions of entry105.0Arrangements for taking the CIPS e-test116.0Malpractice during the CIPS e-test117.0Special considerations128.0Reasonable Adjustments129.0Leaving the room during the e-test1210.0 Inability to sit the e-test1311.0 Data Protection Act1312.0 Appeals process1313.0 What type of questions1414.0 Revision and resources1515.0 The candidate e-testing system17CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 3 of 27

1.0An introduction to CIPSWith approximately 45,000 members, CIPS is the profession’s leading body andthe largest in the world. As a UK recognised Education Awarding Body, which isregulated by the Qualifications and Curriculum Authority, and with itsqualifications contained within the UK national qualifications framework,education is at the core of the Institute’s activities.This guidance booklet is intended to provide guidance to CIPS Level 2 approvedcentres and invigilators; it should be read in conjunction with the CIPS Level 2 etesting guidance document, and the formal contractual and service levelagreement with the centre and CIPS.2.0About the CIPS Level 2 Introductory Certificate inPurchasing and SupplyThe Introductory Certificate consists of four elements, each of which has clearlearning objectives:ElementElementElementElement1234-The role and scope of purchasingSystems and procedures in purchasingWorking with suppliersThe importance of purchasing contractsThe unit content includes a wide range of topics to reflect the range and scope ofthe purchasing function. However, because of the brevity of the IntroductoryCertificate, coverage will be limited to an introduction to, and explanation of, theconcepts, rather than detailed analysis and application. Candidates are expected tolearn the terminology used in purchasing. The use of theoretical concepts will beminimal and practical aspects of the purchasing role will be stressed.Learning outcomesOn completion of this qualification, candidates will be able to: Use confidently the language and terminology used by professionalpurchasers Demonstrate knowledge and understanding of the purchasingprocess Explain the contribution of purchasing to achieving organisationalobjectives Interpret a range of information found in typical purchasingsituations Accept greater responsibility for sourcing decisions within timescales and organisational frameworks Make credible assessments of the tactical options available within adefined purchasing processCIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 4 of 27

The teaching time for face-to-face delivery is up to 20 hours, with a further 10hours of self-study and revision to be undertaken by you directly. The 10 hoursself-study will include reading the CIPS course book, and also any articles or handouts provided to you by your centre. The CIPS course book, if not provided byyour centre, can be purchased directly from the CIPS bookshop 1 - The role and scope of purchasing (weighting 25%)4.0To demonstrate an understanding of the different contexts in whichpurchasing activities take place. The organisation as part of a chain of supply to satisfy an endcustomer The changing world of business/external influences on theorganisation: competition/globalisation customer expectations technology environmental awareness legislation What is ‘purchasing’? how purchasing relates to other parts of the organisation Purchasing in different sectors: public/private/product/services.5.0To describe the elements of the generic purchasing cycle and recogniseits importance. The generic purchasing cycle: identification of need specification identification of source(s) source selection agreeing the contract/raising the purchase orders managing the supply contract receiving the supply payment reviewing the cycle.CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 5 of 27

6.0To identify how effective purchasing contributes to the profitability andcompetitiveness of the organisation. Objectives for purchasing: contributing to profitability and service the ‘five rights’7.0To recognise that varying approaches may need to be taken towardsdifferent classes of purchase. Identifying stakeholders: the internal customer suppliers as a stakeholder Different types of purchase: direct/indirect purchases/MRO/services/capital equipmentELEMENT 2 – Systems and procedures in purchasing (weighting 25%)1.0To identify the basic documents and records used in the purchasingprocess. Documents used in the purchasing cycle – their purpose and use: requisition, ‘enquiry’, purchase order, acknowledgement, delivery note, goods received note, invoice consequences of not following basic processes Role of IT systems in purchasing records: record keeping (purchase ledger/supplier database/stockrecords)2.0To demonstrate an understanding of the issues in holding stock. Buying stock: what is stock? the purposes and cost of holding stock basic stock control systems (re-order level versus periodic review)CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 6 of 27

3.0To explain how purchase needs are established and communicated. Specifications: their purpose usual types of ) characteristics of a ‘good’ specification4.0To explain how quotations from suppliers are obtained and analysed inorder to ensure that requirements are met. Obtaining quotations from suppliers: informal enquiries versus formal tenders What to analyse in quotations: technical offer/delivery/price and pricing approaches/exclusions (for example transport) / payment/terms and conditions/service/validity the need for a simple comparative analysis chart Role of IT systems in purchasing: e-procurement - what is it?5.0To identify potential problems during the purchasing cycle. Dealing with supply problems: internal problems (unclear specs/failing to order in time) external problems (rejects/late delivery) expediting suppliesELEMENT 3 – Working with suppliers (weighting 25%)1.0To demonstrate an understanding of the different reasons for workingand dealing with suppliers. The criteria by which to assess the supplier: financial stability/quality/technical capability/capacity etc the process of assessing a supplier.2.0To explain the different approaches that can be adopted in sourcingsupplies. Finding suppliers: types of supply channel(manufacturers/distributors/wholesalers/ agents/brokers)CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 7 of 27

information sources(exhibitions/internet/catalogues/trade journals) Communicating with suppliers: the need for clear communications methods of communication.3.0To understand the importance of negotiating with suppliers and toexplain the different approaches to negotiating. Negotiating with suppliers: defining ‘negotiation’ negotiation objectives an introduction to the negotiation process.4.0To assist with ongoing supplier relationships. Developing the relationship: when is a longer term relationship appropriate? characteristics and responsibilities of relationships dealing with problem suppliers (Supplier Perception Matrix) The international dimension: reasons for overseas sourcing issues in overseas sourcing (culture and practices) Ethics in purchasing: CIPS Ethical CodeELEMENT 4 – The importance of purchasing contracts (weighting 25%)1.0To explain the legal framework within which purchasing operates in theUK. Differences between criminal and civil law: restitution not punishment precedent and statute2.0To understand the meaning of the term ‘contract’ and to explain why acontract is important. Defining the term ‘contract’ and establish the reasons why contractsare important: definitions forms of contract (standard terms/specific contracts/modelcontracts).CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 8 of 27

3.0To determine how the contract is formed and explain the key elementsof a valid contract. Contract formation: essentials of a valid contract(intention/agreement/consideration) offer versus invitation to treat.4.0To describe the different terms and conditions associated with purchasecontracts. Impact of legislation: Sale of Goods Act 1979 (as amended) standard terms and conditions of contract express versus implied terms consider the role of some typical standard terms.5.0To explain the consequences of a breach of contract. Remedies for breach of contract: typical breaches of contract and consequences of the breach conditions and warranties (cancellation and damages) other forms of dispute resolution (arbitration andadjudication)3.0The CIPS Level 2 e-testThe examination for the Level 2 Introductory Certificate in Purchasing andSupply is assessed by a one hour e-test that takes place at the end of yourprogramme of learning. The e-test consists of 40 multiple-choice questionsand includes questions from each element of the syllabus. It is, therefore,very important that you ensure you have undertaken all of the learning andrevised appropriately for the award.The pass mark for this e-test is 75% and you will be awarded either a passor fail grade. In order to gain a pass, you must correctly answer a minimumof 30 questions out of the 40 available.Your result will be sent by post within two to four weeks from the date ofthe e-test.You will also be sent a CIPS Level 2 Introductory Certificate in Purchasingand Supply Certificate one month after your results have been issued.CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 9 of 27

4.0Terms and Conditions for entryRegistering for the CIPS Level 2 Certificate in Purchasing and SupplyIt is the responsibility of your study centre to ensure that you are registeredfor the CIPS Level 2 Introductory Certificate. You must be registered as aCIPS member in order to take the CIPS e-test. This is outlined to you inyour welcome pack from CIPS.Your study centre will provide you with registration forms and they willsend your completed forms to CIPS for processing.Enrolling for the CIPS level 2 e-testYour completed enrolment form for the CIPS e-test will be completed byyour study centre. They will ensure that it arrived at CIPS at least fourweeks prior to the e-test event date.Your enrolment will be subject to availability and acceptance by CIPS. CIPScannot guarantee enrolment unless your application for CIPS membershiphas been received and processed prior to the submission of the enrolment.Payment for CIPS registration and enrolment for an e-test event will becollected from you by your study centre. The current price for CIPSregistration and one e-test attempt is available on the CIPS website.Confirmation of e-test arrangementsCIPS will confirm the arrangements of your e-test to you, via email.Confirmation will also be sent to your study centre.The email confirmation you receive will include the following information: NameCIPS registration numberDate of the e-testTime of the e-testE-test venue, name and addressRequired identification data (ID)CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 10 of 27

5.0Arrangements for taking the CIPS e-testPlease ensure that you read the following information carefully beforeattending the e-test: You should report to the centre e-test venue at least 40 minutesbefore the e-test is due to start. Late arrivals are only admitted at thediscretion of the invigilator. You will not be able to enter theexamination room if the e-test has commenced. If you need directions to your examination venue, please contact thecentre beforehand. You are requested to bring with you: Your e-test confirmation letter and, if available, your CIPSmembership card and/or you should bring some form ofphotographic identification such as a driving licence orpassport. You may not take: Mobile phones, electronic devices, reading materials, preprepared notesDictionariesBags must be placed at the front of the room during the e-testAny other items or restrictions which are the rules andregulations of your study centre, which may include nottaking any food or drink items into the exam room. Should you arrive late to the test, you will not be allowed to enterthe room if the e-test has started. You will then have to re-enter for anew e-test at your own cost. The only exceptions will be extenuatingcircumstances agreed with your study centre and CIPS andevidenced as necessary.6.0Malpractice during the CIPS e-testMalpractice or any attempt to cheat during the CIPS e-test is a seriousoffence and will result in the candidate being barred from CIPSassessments for up to three years. A copy of the CIPS malpractice policycan be found on the CIPS website Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 11 of 27

7.0Special considerationsDespite every effort being made, sometimes incidents occur during anexamination that you may feel have impacted upon your ability to performwell during the examination. This could, for example, be caused bydisturbances during your examination or be due to temporary sickness. Ifyou feel that such an incident has occurred you should firstly refer to theSpecial Consideration Section of the CIPS Reasonable Adjustments Policywhich is also available on the CIPS website Further detailscan be found in 8.0 of this handbook.Requests for special consideration must be made in writing to the CIPSexaminations team within seven days of the e-test. Your request mustprovide a detailed explanation of the nature of your request and this will beconsidered by the assessment board prior to the release of results.8.0Reasonable AdjustmentsCIPS has a responsibility to ensure that all candidates have equalopportunities to reach their full potential. In some instances, candidatesmay require adjustments to the assessment process to give them an equalopportunity, and CIPS has a responsibility to ensure that appropriateadjustments are made for each candidate.In the first instance, if you require reasonable adjustments you shouldcontact your tuition centre and speak to your tutor who will assist you.Further information about reasonable adjustments can be obtained asindicated above in the CIPS website www.cips.org9.0Leaving the room during the e-testIf you find for any reason during the examination that you need to leave thee-testing room you should speak directly to the invigilator, who will ensurethat you are escorted at all times.If you leave the examination room un-escorted, you will be unable to returnto the e-testing room and your e-test will be invalid.CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 12 of 27

10.0 Inability to sit the e-testIf illness prevents you from attending the e-test you may defer yourenrolment at no extra charge. Please send a written explanation to the CIPSAssessment Services Team, supported by a medical certificate within sevendays of the e-test date. The e-test fee will be credited to your account forfuture use and you will be required to re-enter for the e-test at a timeconvenient to you and your e-test centre.11.0 Data protectionCIPS is registered under the provisions of the Data Protection Act 1998 andkeeps any personal data concerning candidates in confidence, subject to thefollowing conditions.By entering the Level 2 e-test you authorise CIPS to disclose your contactdetails and (where appropriate) CIPS’ membership status and e-test resultsto CIPS assessors, educational establishments, e-test centres, and youremployer(s).CIPS cannot enrol you or provide enrolment details by telephone. You willfind a full description of the CIPS Code of Practice for Data Protection on theCIPS website ( ).12.0 Appeals processShould you disagree with your e-test result at the time your results arereleased, you can appeal against your mark through the normal CIPSappeals process, which can be found on the CIPS website.CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 13 of 27

13.0 What type of questions?Later on in this handbook, CIPS will provide you with an overview of how touse the CIPS e-testing system so that you know what to do when you arriveat your assessment.However, when you do sit down to your e-test, this is the type of questionthat you will answer, and this is how it will display itself on the screen.The e-test consists of: 40 multiple-choice questions, which always provide you with a questionand a choice from four options for each question. Please note there areno open-ended questions in this paper, therefore you will constantly beselecting one option from four throughout the test.CIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 14 of 27

The 40 questions are taken from the four elements of the syllabus andwill be allocated as follows:oElement 1The role and scope of purchasing9 questionsoElement 2Systems and procedures in purchasing11 questionsoElement 3Working with suppliers9 questionsoElement 4The importance of purchasing contracts11 questions All areas of the syllabus will be tested The questions are selected from a questions bank You will have approximately 1½ minutes to answer each question.14.0 Revision and resourcesEarlier in this guide we mentioned that you will be tested on all four elementsof the syllabus. The questions are selected from a question bank, and so thereis no opportunity for question spotting and therefore you need to ensure, thatyou address all of the materials.Remember you only have only 1½ minutes to answer each question so youneed to think quickly and you will only be able to do this effectively if youprepare for your e-test effectively.There are a number of different approaches to revision and you should beguided by your centre. You should be aware of the key facts within thesyllabus, and be confident in providing answers in relation to: Processes Models such as the purchasing cycle Theories/concepts Criteria applied Tactics and skills required for purchasersCIPS Level 2 e-testing handbook for candidatesJuly 2008 – CIPS Page 15 of 27

Legal acts/dates/contextIn essence you should be able to answer questions on everything included inthe unit content. Remember, however, this is a Level 2 qualification andquestions will be straightforward and uncomplicated, as complexity is notsomething you will be assessed upon. The nature of this examination is purelya test of your knowledge and understanding of the facts that you have learned.When revising, start with the areas you find most difficult and mos

2.0 About the CIPS Level 2 Introductory Certificate in Purchasing and Supply The Introductory Certificate consists of four elements, each of which has clear learning objectives: Element 1 - The role and scope of purchasing Element 2 - Systems and procedures in purchasing Element 3 - Working with suppliers Element 4 - The importance of purchasing contracts The unit content includes a wide range .

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