CIPS Level 2 – M2 | Procurement and Supply Operations
What Is CIPS?
CIPS — the Chartered Institute of Procurement & Supply — is an international professional body dedicated to developing knowledge and skills in procurement and supply. CIPS qualifications provide a structured learning pathway for those starting their careers and professionals seeking to advance their expertise.
SCM by BMS is a CIPS Approved Study Centre. We support learners in developing their knowledge through CIPS qualification programmes and preparing for their examinations.
About the Module
L2 – M2: Procurement and Supply Operations introduces types of business organisations, the contracting process and the systems that support procurement operations.
In any organisation, a significant element of procurement and supply activity is based around the contracting process. This module helps learners understand the fundamentals of this process, identify sources of information on suppliers and customers, and explore pricing methods used when purchasing goods and services.
Module Purpose
On completion of this module, learners will be able to identify types of business organisations and explain the fundamentals and components of the contracting process.
Learners will also be able to identify sources of information on suppliers and customers, describe pricing methods used when purchasing goods and services, and recognise the advantages and disadvantages of these methods.
The module focuses on understanding the systems and components that support the contracting process, using information sources and developing knowledge of pricing methods.
Who Is This Module For?
Those starting a career in procurement and supply;
Employees involved in procurement and supply operations;
Individuals working with information on suppliers and customers;
Those wishing to develop a basic understanding of contracting and pricing methods.
This module develops essential knowledge of procurement and supply operations as part of the CIPS Level 2 Certificate in Procurement and Supply Operations.
Exam Format
Objective Response Examination (OR)
This format allows you to select a response from a list of possible answers. Responses are marked by computer and then moderated by CIPS examiners.
Total Qualification Time (TQT)
Total Qualification Time indicates the overall time required for guided learning, additional self-study and assessment to achieve the qualification.
The following figures apply to the full Level 2 qualification.
Guided Learning Hours (GLH)
The Level 2 qualification includes 120 guided learning hours. These cover lectures, tutorials, practical sessions and supervised study.
Self-Study Requirement (SSR)
For the Level 2 qualification, an additional minimum of 54 hours of self-study is recommended. This includes wider reading of the subject areas and revision.
Total Examination Time for the Qualification: 6 Hours
All modules within the Level 2 qualification are assessed by examination. The combined examination time across all modules is 6 hours.
Module Learning Time
Learning time for L2 – M2: 30 hours.
CIPS Level 2 – M2 | Procurement and Supply Operations
Learning Outcomes, Assessment Criteria and Indicative Content
1.0 Know the types of organisations and how they operate
1.1 Identify the types of business organisations
Private, public and third sector organisations
Production and service organisations
1.2 Describe how organisations operate
People, objectives and structure in organisations
The formal and informal organisation
1.3 Identify the key operating functions within organisations
Differentiation and integration in organisations
Typical functions in organisations such as production, operations, marketing and sales, customer support, human resources, personnel, finance, IT and technical functions
Differentiating procurement and supply
2.0 Know the components of contractual agreements
2.1 Identify types of contracts
Spot purchases
Term contracts
Framework arrangements, blanket orders, panel contracts and call-offs
2.2 Identify the kinds of pricing arrangements applied in commercial contracts
Fixed pricing, lump sum pricing and schedule of rates
Cost-reimbursable and cost-plus arrangements
Variable pricing arrangements
Target pricing arrangements
Risk and reward pricing arrangements
2.3 Define the different documents that compose a contract for the purchase or supply of goods or services
Defining contracts and agreements
The use of tendering and quotations
The documents that comprise a contract: the specification, key performance indicators (KPIs), contract terms, pricing and other schedules
Contracts for the supply of goods or services
3.0 Understand sources of information on suppliers and customers
3.1 Explain the use of the Internet to locate details about suppliers and customers
The use of Internet search engines to locate details about suppliers and customers
The types of information presented by suppliers and customers on their websites
B2B and B2C e-commerce
3.2 Explain the use of credit rating agencies
The role of credit rating agencies and credit rating scores
Publications on individual organisations and markets
The use of credit rating scores
3.3 Describe systems used in procurement and supply
Systems for purchase ordering
Capturing data on expenditures
The use of portal sites to locate suppliers or customers
Examples of supplier database systems
4.0 Understand pricing methods used for the purchasing of goods or services
4.1 Explain the advantages and disadvantages of a range of pricing methods
Fixed pricing, lump sum pricing and schedule of rates
