Discuss CIPS L4M8 Exam Topic 7 Question 62

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.

Suggested Answer: A

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30 comments · newest first

Tequila 10 months ago

New buy = first time, modified re-buy = changes. Simple!

Karima 10 months ago

Sounds right, but isn't it risky to change suppliers?

Ernest 11 months ago

Wait, so you don't always start from scratch for a modified re-buy?

Oliva 11 months ago

New buy is when you buy something for the first time.

Lynda 11 months ago

Totally agree, modified re-buy is just tweaking an old order.

Dalene 11 months ago

I recall a practice question where we had to identify whether a purchase was a new buy or modified re-buy based on the details given. It helped clarify the definitions for me, but I still get confused sometimes!

Casey 12 months ago

I feel like modified re-buy is a bit tricky. I know it involves changes to previous purchases, but I'm not sure how much change is needed to classify it as modified.

Omer 12 months ago

I think a new buy is when a company purchases something for the first time, like when we talked about a restaurant buying kitchen equipment for the first time.

Barbra 1 year ago

I remember studying the differences between new buys and modified re-buys, but I'm a bit unclear on the specific examples we discussed in class.

Kate 1 year ago

This question tests our understanding of the procurement process. I'll review the key steps to ensure I can properly differentiate a new buy from a modified re-buy.

Ryan 1 year ago

The distinction between these two procurement scenarios is important. I'll make sure I understand the nuances before attempting to answer.

Jeniffer 1 year ago

Okay, the explanation provides a good overview of the differences. I feel confident I can explain the definitions now.

Niesha 1 year ago

Hmm, I'm a bit unsure about the difference between a new buy and a modified re-buy. I'll need to think through the details carefully.

Paulina 1 year ago

This question seems pretty straightforward. I think I can handle defining the key terms here.

Blossom 1 year ago

I think in an exam, they might ask us to differentiate between a new buy and a modified re-buy.

Susana 1 year ago

The explanation is thorough, but I'm wondering if there are any exceptions or edge cases where we might not have to start from the beginning in a modified re-buy situation.

Jodi 10 months ago

↳ replying to Susana

That makes sense! It could save time in the procurement process.

Bernadine 10 months ago

↳ replying to Susana

Exactly! Or if you already have a good relationship with the new supplier.

Lashunda 10 months ago

↳ replying to Susana

Great question! I think if the changes are minor, you might skip some steps.

Josefa 11 months ago

↳ replying to Susana

Yeah, like if you're just changing the quantity, right?

Robt 1 year ago

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

Youlanda 1 year ago

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

Annmarie 1 year 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.

Terina 1 year 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?

Nakisha 1 year ago

↳ replying to Terina

It's all about assessing the situation and determining the best approach for the modified re-buy process.

Ruthann 1 year ago

↳ replying to Terina

Starting from the beginning ensures that the added need is justified and the procurement process is followed through.

Shonda 1 year ago

↳ replying to Terina

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

Rachael 1 year ago

↳ replying to Terina

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

Hillary 1 year ago

↳ replying to Terina

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

Dorathy 1 year ago

↳ replying to Terina

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

CIPS L4M8 Exam - Topic 7 Question 62 Discussion