CIPS Exam L4M8 Topic 9 Question 39 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 39
Topic #: 9

[All L4M8 Questions]

Explain how procurement should decide whether to make or buy a product or service.

AExplanation:
Make or buy decision are about whether a products or services should be made within the organization or bought-in from an external supplier.
For a procurement professional to establish which method (make or buy) offers the best value, the item in question must be thought through if it is core to the organization and which option will add more value to the organization, as regards achieving its strategic goals. If it is core the procurement professional decide to make it and if it is not core the product or services can be bought in.

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Suggested Answer: A

by Rueben at Jul 11, 2024, 07:49 AM

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Carli

1 months ago

This is a textbook-perfect response. I could almost hear the procurement professor lecturing on this topic. Very well-structured and informative.

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Laurene

18 days ago

User 3

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Caitlin

23 days ago

User 2

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Wynell

1 months ago

User 1

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Catarina

2 months ago

Haha, I wonder if the 'make' option involves duct tape and a 3D printer. Jokes aside, this is a solid explanation of a fundamental procurement concept.

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Lelia

16 days ago

Lauran: Exactly! It's all about adding value to the organization.

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Hollis

25 days ago

User 3: So, if it's core, we make it, and if not, we buy it?

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Lauran

1 months ago

User 2: Definitely! But it's more about core vs non-core products or services.

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Elin

1 months ago

User 1: Haha, duct tape and a 3D printer would be interesting!

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Elke

2 months ago

The answer provides a clear framework for evaluating make-or-buy decisions. I like how it emphasizes aligning the decision with the organization's strategic goals.

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Jose

2 months ago

This question covers the key factors to consider in a make-or-buy decision. The explanation covers the core concept well - focusing on whether the item is strategic and which option adds more value.

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