CIPS L4M2 Defining Business Need

About Course

Defining Business Need (L4M2) focuses on how to devise a business case for requirements to be externally sourced. It explores the role of market management, competitive forces, and the clear definition of specifications to ensure successful through-life contracts.

Understand how business needs and different types of purchases (new, modified, or straight rebuy) influence procurement decisions.
Identify how to estimate costs and prices using market data and financial budgets.
Analyse criteria for developing a business case, including costs, benefits, and alignment with organisational needs.
Compare competitive forces in various markets, such as manufacturing, retail, and services.
Analyse different types of specifications (conformance vs. performance) and how to mitigate risks from inadequate ones.
Identify opportunities for value analysis and value engineering.

Course Content

CIPS L4M2 LO1 Understand how to develop a business case for requirements to be sourced from external suppliers

Desk Research (Published Resources) – Using Secondary Data to Define Business Need
Field Research (Primary Data) – Collecting First-Hand Market Intelligence
How to Carry Out a Price Analysis ?
Monte Carlo Analysis (WLC) – Managing Cost Uncertainty in Procurement Decisions
Approaches to Budget Variances : Price and Quantity Variance
Approaches to Budget Variances : Labour and Overhead Variance

CIPS L4M2 LO2 Understand market management in procurement and supply

CIPS L4M2 LO3 Understand the use of specifications in procurement and supply

First Round Assignment

CIPS L4M2 Mock Questions

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About Course

What Will You Learn?

Course Content

CIPS L4M2 LO1 Understand how to develop a business case for requirements to be sourced from external suppliers

Desk Research (Published Resources) – Using Secondary Data to Define Business Need

Field Research (Primary Data) – Collecting First-Hand Market Intelligence

How to Carry Out a Price Analysis ?

Monte Carlo Analysis (WLC) – Managing Cost Uncertainty in Procurement Decisions

Approaches to Budget Variances : Price and Quantity Variance

Approaches to Budget Variances : Labour and Overhead Variance

CIPS L4M2 LO2 Understand market management in procurement and supply

STEEPLED Analysis – Market Analysis to Identify Trends, Opportunities, and Threats

Segmentation Analysis – Understanding Supply Markets to Build Competitive Advantage

Porter’s Five Forces – Market Analysis that Reveals Opportunities & Threats

Analysis of Organizatins (Value Chain Analysis – Understanding How Suppliers Create Cost and Value)

Understanding and Managing Market Sectors – Practical Market Analysis for Procurement

CIPS L4M2 LO3 Understand the use of specifications in procurement and supply

Key Sections of Specifications for Through-Life Contracts

How to Write a Description of Requirements (User Story Technique)

Types of Acceptance Testing – Ensuring Requirements Are Met

Implementing Standardisation – Reducing Part Variety to Improve Cost and Efficiency

First Round Assignment

Learning Outcome 1 Reflection

Learning Outcome 2 Reflection

Learning Outcome 3 Reflection

CIPS L4M2 Mock Questions

218 CIPS L4M2 Mock Questions

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