CIPS Exam L4M8 Topic 7 Question 62 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 62
Topic #: 7

[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.

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by Ozell at Aug 04, 2025, 02:12 AM

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Robt

18 days ago

Modified re-buy is when an organization buys goods or services they have bought before but with changes to the specification or supplier.

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Youlanda

22 days ago

A new buy is when an organization or individual purchases goods or services for the first time.

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Annmarie

23 days ago

The distinction between new buy and modified re-buy is clear, but I'm curious about the specifics of when we need to start the procurement cycle from the beginning in a modified re-buy scenario.

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Terina

27 days ago

A new buy makes sense, but I'm not sure I fully understand the modified re-buy. Do we always have to start from the beginning, even if it's just a small change?

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Shonda

10 days ago

In some cases, like changing suppliers, you can start from your preferred suppliers list and contract the next ranking supplier.

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Rachael

15 days ago

Yes, for a modified re-buy, it's important to start from the beginning to justify the changes needed.

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Hillary

21 days ago

In some cases, like changing suppliers, you may not have to start from the very first stage.

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Dorathy

24 days ago

Yes, for a modified re-buy, it's important to start from the beginning to justify the changes needed.

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