CIPS Exam L4M8 Topic 10 Question 18 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 18
Topic #: 10

[All L4M8 Questions]

What are the definition of a new buy and a modified re-buy?

AExplanation:
A new buy is the purchase of goods and services by an organization or an individual for its first time. For example a transport organization for the very first time contracting the purchase of a Lorry out to an external supplier. In situations like this, it is advisable to start the procurement cycle from the very first stage. Which is understanding the need and developing high level specification.
Modified re-buy is the purchase of goods or services that an organization has bought before there was a need but with changes to the specification or supplier or quantity or quality. In carrying out modified re-buy, procurement professional should start from the very first stage of the procurement cycle to justify the added need and follow through. Not in all cases that buyer would have to start from understanding the need. In a situation where the changes required is a change of supplier, the organization will start from its preferred suppliers list and contract the next ranking supplier as the case may be.
*
Refer to the question column for response

Show Suggested Answer

Suggested Answer: A

by Jani at Jul 03, 2023, 07:20 AM

Limited Time Offer

25%

Off

Get Premium L4M8 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Juliana

1 months ago

This question is a real transportation dilemma, isn't it? I wonder if they'll also ask about the definition of a 'U-Haul' re-buy.

upvoted 0 times

Halina

3 days ago

New buy is when you purchase something for the first time, like a transport organization buying a lorry for the first time.

upvoted 0 times

...

Ma

10 days ago

Yes, it can be tricky to differentiate between a new buy and a modified re-buy.

upvoted 0 times

...

Kanisha

1 months ago

Wait, are we talking about buying lorries or just general procurement? I'm a bit confused, but I think I understand the key differences now.

upvoted 0 times

...

Kathrine

1 months ago

This is a good explanation. I like how it goes into the details of the procurement cycle for each case. Definitely helps clarify the differences between the two.

upvoted 0 times

Vince

1 months ago

Yes, it's important to understand the differences between new buy and modified re-buy.

upvoted 0 times

...

Pearlie

2 months ago

Okay, so a new buy is when an organization is purchasing something for the first time, while a modified re-buy is when they're buying something they've bought before but with changes. Got it!

upvoted 0 times