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CIPS Exam L4M2 Topic 8 Question 31 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 31
Topic #: 8
[All L4M2 Questions]

A procurement organisation is keen to encourage innovation available within the supply market in the execution of an upcoming significant contract opportunity. A team member suggests that the specification should define the performance indicators so that supplier's solution can be checked against them. Which of the following will enable the organisation to achieve this goal?

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Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.


LO 3, AC 3.1

by Claribel at Apr 09, 2024, 09:31 PM

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Larae
11 days ago
Haha, yeah, transparent selection criteria? That's like saying 'breathe oxygen to live' - it's just common sense, not a strategy to encourage innovation!
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Cyndy
13 days ago
I'm not too sure about option B, 'establishing transparent selection criteria'. Isn't that just table stakes? Shouldn't that be a given?
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Dawne
14 days ago
Yes, exactly! By defining the performance indicators, the organization can evaluate the proposed solutions against their needs, rather than being stuck with a narrow, pre-defined way of doing things.
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Leonie
15 days ago
Hah, 'outcome-focused specification' - that's a fancy way of saying 'tell us what you want to achieve, not how to do it'. I like that approach, gives the suppliers room to innovate.
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Marjory
17 days ago
I agree, the question is really about enabling innovation. From the options provided, I think using an outcome-focused specification (A) is the way to go. This allows suppliers to propose creative solutions without being overly prescriptive.
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Shawna
19 days ago
This question is definitely testing our understanding of procurement processes and strategies. I think the key here is to focus on how the organization can encourage innovation from the supply market.
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