CIPS L4M8 Exam - 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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Edda

3 months ago

I think it depends on the market conditions too!

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Pete

3 months ago

Wait, is it really that simple?

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Amie

3 months ago

It's all about value, right?

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Annelle

4 months ago

Totally agree, but sometimes buying can be cheaper!

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Francene

4 months ago

Core products should definitely be made in-house.

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Adelle

4 months ago

I vaguely recall something about core competencies influencing the decision. If it’s not a core competency, it makes sense to buy, but I’m not clear on how to identify those competencies accurately.

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Norah

4 months ago

I feel like there was a practice question that asked about risk assessment in make or buy decisions. I think understanding the risks involved is just as important as the cost.

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Amber

4 months ago

I think we also talked about cost analysis in class. It’s crucial to compare the total costs of making versus buying, but I’m not entirely sure how to weigh those factors effectively.

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Emile

5 months ago

I remember discussing the importance of aligning the make or buy decision with the company's strategic goals. It really helps to clarify which option adds more value.

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Quentin

5 months ago

I'm a bit confused on how to actually evaluate if something is "core" to the organization. Any tips on making that assessment?

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Casie

5 months ago

I got this! Identify the strategic importance, then decide whether to manufacture internally or purchase externally. Simple as that.

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Audra

5 months ago

Okay, the key is to evaluate if it's a strategic, core function that should be kept in-house, or if it's better to outsource. Gotta weigh the pros and cons.

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Lashawn

5 months ago

Hmm, not sure I fully understand the difference between core and non-core products/services. Need to review that concept.

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Nilsa

5 months ago

This is a pretty straightforward question, just need to think through the key factors in a make-or-buy decision.

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Arminda

5 months ago

Ah, I think I know the answer to this one. Based on my understanding of how the platform works, the search terms would be captured as a query string parameter. That makes the most sense to me.

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Luz

5 months ago

I think option C sounds right because it lists multiple types that can't be used as keys, which aligns with what we studied. Need to double-check though!

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Kaitlyn

5 months ago

I recall similar practice questions that highlighted Cisco's approach to being customer-focused. That might lead us to select option B too, but I could be wrong.

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Kate

5 months ago

I'm a little confused by the wording of the question. Is it asking about the integration capabilities or the requirements for a resilient and scalable deployment? I'll need to think through this carefully.

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Carli

10 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

9 months ago

User 3

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Caitlin

9 months ago

User 2

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Wynell

9 months ago

User 1

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Catarina

10 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

9 months ago

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

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Hollis

9 months ago

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

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Lauran

9 months ago

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

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Elin

10 months ago

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

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Elke

10 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

10 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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