CIPS Level 2 Procurement study guide
CIPS Level 2 Procurement · Work through your exam, one topic at a time.
The CIPS Level 2 Certificate in Procurement and Supply Operations is an entry-level professional qualification from the Chartered Institute of Procurement & Supply, aimed at people starting out in buying, purchasing and supply roles or moving into the function from another area. It suits school and college leavers, apprentices, administrators who handle requisitions and orders, and anyone who needs a working vocabulary of procurement before taking on more responsibility. The CIPS Level 2 Procurement study guide has 5 sections and about 1,549 words.
01Procurement and Supply Principles
Procurement is the whole process of acquiring goods, works and services, from identifying a need through to contract end and disposal. Purchasing is narrower: the transactional act of buying.
359 words, about 2 min02Procurement and Supply Functions
A procurement function typically handles spend analysis, sourcing and tendering, contracting, ordering and payment, supplier and contract management, risk, compliance and the interface with inventory and logistics. Supply chain management usually extends further, into planning, warehousing and transport.
305 words, about 2 min03Procurement and Supply Processes
Identify the need → define the specification → develop a sourcing strategy → identify and shortlist suppliers → evaluate → negotiate → award contract → manage the contract → review and dispose. Specification - conformance specifications state exactly what is required; performance specifications state the outcome and leave design to the supplier.
306 words, about 2 min04Procurement and Supply Administration
Administration is the documented spine of procurement. It proves what was agreed, who approved it and that money was properly spent.
288 words, about 1 min05Procurement and Supply Stakeholders
Internal: requisitioners and end users, budget holders, finance, legal, HR, IT, senior management and the board, internal audit. External: suppliers and subcontractors, customers, regulators and government, trade unions, the local community, NGOs and media.
291 words, about 1 min