Diploma in Procurement & Supply (Level-4)
Your qualification
CIPS qualifications are regulated internationally to ensure we offer a recognised, professional standard in procurement and supply.
CIPS Level 4* Diploma in Procurement and Supply is a vocationally related professional qualification. Formal recognition is included within the regulatory frameworks of an increasing number of countries such as the UK (England, Wales and Northern Ireland), UAE (including Dubai) and Africa (including Zambia).
CIPS members can have the confidence in our regulated qualifications, which reliably indicate the standard of knowledge, skills and understanding that you, as a learner, are required to demonstrate.A step up from the Level 3 Advanced Certificate in Procurement and Supply Operations. the Level 4 Diploma in Procurement and Supply is a stepping stone to study on the CIPS Level 5 Advanced Diploma in Procurement and Supply.
The content has been written using the CIPS Procurement and Supply Cycle as its focus, which presents a cyclical process of key steps faced by those procuring goods or services.
The Diploma offers the most common entry route to the profession and should be used by learners to develop a professional ‘tool box’ which learners can apply in the practical environment and further develop at Levels 5 and 6. In this way successful learners will possess transferable workplace skills, developing their operational and tactical abilities as they strive for managerial roles and responsibilities. It is aimed at those in the profession who have procurement and supply activity at the heart of their role. Learners will be expected to provide advice and guidance to key stakeholders on the performance of organisational procedures and processes associated with procurement and supply and will aspire to manage developments in and improvements to the related functions. Transferable skills are those such as communication, teamwork, and planning and completing tasks to high standards, all enable the learner to add value to the organisation.
Who is it for?
This qualification is the essential toolkit for anyone planning a career in procurement and supply. Developed and written using the Procurement and Supply cycle** as it’s focus, it is at the same level as the first year of an undergraduate degree course. It’s suitable for those in operational roles or those managing or supervising the procurement and supply function who want to develop their career and work towards MCIPS Chartered Procurement and Supply Professional.
What will I learn?
You will learn about making procurement and supply happen within an organisation, and you will be equipped with an essential range of knowledge and tools that you can apply immediately in your workplace. Learn how to apply practical, theoretical and technical knowledge, gain a clear understanding of procurement and supply and develop the ability to address complex, non-routine problems. On completion, you will be able to analyse, interpret and evaluate relevant information and ideas and have an informed awareness of differing perspectives and approaches within the profession. You will also be able to review the effectiveness and appropriateness of methods, actions and results.
Entry requirements
This is the only entry point onto our Diploma qualifications. A minimum of at least two A-levels (or international equivalent) or a CIPS Level 3 Advanced Certificate qualification is required. Alternatively, you will need a minimum of two years’ relevant experience in a business environment.
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Diploma Modules and Content
Scope of Procurement & Supply [L4M1]
Module purpose
On completion of this module, learners will be able to identify the key stakeholders in the application of the sourcing process and analyse the procurement cycle, evaluating the influence that procurement and supply has as a source of added value for the organisation.
Module aim(s)
In any organisation, a significant proportion of costs are accounted for by the purchases of products and/or services, hence organisations see procurement and supply as a key contributor to their value-added strategies. Equally, any organisation will also be managing the supply of products and/or services to their customers, be they internal or those from other external organisations, consumers or the general public. This module is designed using the CIPS Procurement Cycle as its basis. It will provide those who are interested in developing an informed awareness of different perspectives or approaches within the discipline.
Learning outcomes, assessment criteria and indicative content(s)
1- Added value that can be achieved through procurement and supply chain management.
- Describe the categories of spend that an organization may purchase.
- Analyse the different sources of added value in procurement and supply.
- Compare the concepts of procurement and supply chain management.
2- Understand and analyse the key steps when procuring goods or services
- Explain the key aspects of the procurement cycle.
- Analyse the key stages of a sourcing process.
- How electronic systems can be used at different stages of the process.
- Analyse the relationship between achieving compliance with processes and the achievement of outcomes.
3- Key aspects organisation and the scope of a procurement or supply chain function
- Explain key aspects of corporate governance of a procurement or supply chain .
- Analyse the impact of organisational policies and procedures on procurement.
- Examine the different structures of a procurement or supply chain function.
- Explain the common IT systems that can be used by a procurement function.
4- The compliance need when undertaking procurement activities in different sectors
- Classify different economic and industrial sectors.
- Analyse the impact of the public sector on procurement or supply chain roles.
- Examine the impact of the private sector on procurement or supply chain roles.
- Examine the impact of the notforprofit on procurement or supply chain roles.
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Defining Business Need [L4M2]
Module purpose
On completion of this module, learners will be able to devise a business case for requirements to be externally sourced and will understand the role of market management and competitive forces as they specify goods and services in procurement and supply.
Module aim(s)
The development of a business case and the ability to analyse markets are key if an organisation is to successfully source activity from external suppliers. Similarly, the clear definition of specifications for through life contracts is crucial to overall business achievement. This module is designed for those who are expected to analyse, interpret and evaluate information on the different types of markets utilised by procurement and supply. It explores a variety of elements that underpin the development of business cases and specifications and considers the options that should be explored when procurement and supply personnel are involved in defining requirements.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand how to devise a business case for requirements to be sourced from external suppliers
- Analyse how business needs influence procurement decisions.
- Identify how costs and prices can be estimated for procurement activities.
- Analyse the criteria that can be applied in the creation of a business case.
- Interpret financial budgets for the control of purchases.
2- Understand market management in procurement and supply.
- Analyse the different types of markets utilised by procurement and supply.
- Compare the competitive forces that influence markets.
- Contrast the breakdown between direct and indirect costs .
3- Understand the use of specifications in procurement and supply.
- Analyse different types of specifications used in procurement and supply .
- Identify sections of specifications for through life contracts.
- Identify the risks that can result from inadequate specifications and mitigation .
- Identify opportunities to regulate short and longer term specifications.
Commercial Contracting [L4M3]
Module purpose
On completion of this module, learners will be able to describe the key elements and legal aspects of formal commercial contracts, and analyse and interpret the fundamentals of specifications and key performance indicators that are included in contractual arrangements made with suppliers.
Module aim(s)
In any organisation, a significant element of the procurement and supply function is based around the contracting process. If they are to be successful, contracts must be clearly defined, be cognisant of legal requirements and contain key clauses and terms. This module is designed for those working in the procurement and supply field, or those who have responsibility for the development of legally binding contracts with suppliers.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand how to devise a business case for requirements to be sourced from external suppliers.
- Analyse how business needs influence procurement decisions.
- Identify how costs and prices can be estimated for procurement activities.
- Analyse the criteria that can be applied in the creation of a business case.
- Interpret financial budgets for the control of purchases.
2- Understand market management in procurement and supply.
- Analyse the different types of markets utilised by procurement and supply.
- Compare the competitive forces that influence markets.
- Indirect costs and the types of data that can provide information on cost and price.
3- Understand the use of specifications in procurement and supply.
- Analyse different types of specifications used in procurement and supply and sources of .
- information that can be used to create specifications.
- Identify sections of specifications for through life contracts.
- Identify the risks that can result from inadequate specifications and mitigation .
- Identify opportunities to regulate short and longer term specifications.
Ethical and Responsible Sourcing [L4M4]
Module purpose
On completion of this module, learners will be able to explain the options and associated processes available for sourcing with external suppliers. They will also examine the legal and ethical impact and the implications of corporate social responsibility, on the final sourcing decision.
Module aim(s)
In any organisation, a significant element of procurement and supply activity is based around decisions to internally conduct activity or to source from an external supplier. Hence, the selection of the correct external suppliers is a vital contributor to overall organizational success. This module enables personnel with roles in procurement and supply to formulate selection criteria and sourcing strategies to ensure that the organisation will make the correct choice of external suppliers.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand options for sourcing requirements from suppliers.
- Identify the sourcing process in relation to procurement.
- Differentiate between approaches to the sourcing of requirements suppliers.
- Define the criteria that can be commonly applied when sourcing requirements from suppliers.
- Define award criteria that can be applied when sourcing requirements from external suppliers.
2- Understand the key processes that can be applied to the analysis of potential external suppliers.
- Analyse used sources of information on market impact the sourcing of requirements from suppliers.
- Identify the key processes used for obtaining quotations and tenders.
- Identify the criteria that can be commonly applied to the assessment of quotations or tenders.
3- Understand compliance issues when sourcing from suppliers.
- Compare the key legislative when sourcing in the notforprofit, private and public sectors.
- Compare the key legislative, when sourcing from international suppliers.
4- Understand ethical and responsible sourcing.
- Describe the impact of international ethical standards on procurement .
- Identify practices that support ethical procurement.
- Compare the use of audits and other feedback mechanisms .
- Contrast processes and practices that the organisation could adopt to meet the requirements of (CSR).
Commercial Negotiation [L4M5]
Module purpose
On completion of this module learners will be able to identify approaches to successfully achieving negotiated commercial agreements with external organisations.
Module aim(s)
The creation of formalised agreements is a critical part of the success of any organisation. Those involved in procurement and supply activity will therefore be able to effectively negotiate with stakeholders and/or suppliers and to understand the methods associated with preparing for and carrying out commercial negotiations. This module is designed for those who are faced with negotiations. It enables the learner to analyse approaches to the negotiation of agreements made with external parties, how to prepare for them and what techniques are available to ensure successful outcomes.
Learning outcomes, assessment criteria and indicative content(s)
1- Key approaches in the negotiation of commercial agreements with external organisations.
- Analyse the application of commercial negotiations in the work of procurement and supply.
- Differentiate between the types of approaches that can be pursued in commercial negotiations.
- Explain how the balance of power in commercial negotiations can affect outcomes.
- Identify the different types of relationships that impact on commercial negotiations.
2- Know how to prepare for negotiations with external organisations.
- Describe the types of costs and prices in commercial negotiations.
- Contrast the economic factors that impact on commercial negotiations.
- Analyse criteria that can be used in a commercial negotiation.
- Identify the resources required for a negotiation.
3- Understand how commercial negotiations should be undertaken.
- Identify the stages of a commercial negotiation.
- Appraise the key methods that can influence the achievement of desired outcomes.
Supplier Relationships [L4M6]
Module purpose
On completion of this module, learners will be able to analyse the dynamics of supplier relationships, examine the processes and procedures for working with stakeholders and appreciate the concept of partnering.
Module aim(s)
In any organisation, a significant element of the procurement and supply function is based around decisions to source activity from external suppliers. Once agreements have been established the relationship established with the supplier is paramount to overall success. At its highest-level outsourcing can take the form of a partnership or joint venture. This module is designed for those who have responsibility for maintaining and managing relationships with stakeholders and suppliers and for those who may be faced with establishing and developing formal partnerships.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the dynamics of relationships in supply chains.
- Differentiate between types of commercial relationships in supply chains.
- Appraise portfolio analysis techniques to assess relationships in supply chains.
- Identify the competitive forces that impact on relationships in supply chains.
- Compare the sources of added value that can be achieved through supply chain relationships.
2- The processes and procedures for successful working with stakeholders.
- Analyse the purpose of organisational procedures and processes in sourcing goods and/or services.
- Compare team techniques to ensure positive stakeholder relationships.
- Compare the practical considerations of stakeholder management.
- Identify the processes for terminating stakeholder relationships.
3- Understand the concept of partnering.
- Analyse the concept of partnering and where it is a suitable approach.
- Appraise the process of partnership implementation.
- Identify the reasons why partnerships fail.
Whole Life Asset Management [L4M7]
Module purpose
On completion of this module, learners will be able to explain methods of inventory storage and control and analyse the concept of whole life cost from concept through to disposal.
Module aim(s)
Whole life costing takes into account the total cost of a product or service over its lifetime, from concept through to disposal including purchase, hire or lease, maintenance, operation, utilities, training and disposal. Hence, it is important for those involved in the procurement and supply function to take all these elements into consideration when making decisions and comparing the costs of buying, renting or leasing equipment. In most cases the purchase costs are a small proportion of the cost of operating it. Although costly, there are numerous reasons why organisations elect to hold inventory. The management and control of such inventory is therefore vital to organisational success. This module is designed for those who will have responsibility for the whole life management of assets and enables learners to analyse methods for inventory movement and control and to analyse the concept of whole life cost.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand methods for the storage and movement of inventory.
- Identify the principles, purpose and impact of stores and warehouse design.
- Explain the use of product coding in inventory operations.
- Contrast the impact of the use of different warehousing equipment.
2- Understand the key elements of effective inventory control.
- Differentiate between the different classifications of inventory.
- Identify the direct and indirect costs of holding inventory.
- Identify techniques associated with inventory control.
3- Understand the concept of through life cost.
- Analyse the contributing factors when establishing total cost of ownership.
- Compare the factors to consider when building a total cost of ownership model.
- Identify the contributing elements to end of life costs.
Procurement and Supply in Practice [L4M8]
Module purpose
On completion of this module, learners will be able to demonstrate the practical application of the key elements of the procurement cycle in an integrated manner, within a workplace context.
Module aim(s)
Procurement is the business function that ensures identification, sourcing, access and management of external resources that an organisation needs or may need to successfully fulfil its strategic objectives. It exists to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcomes to the organisation, its stakeholders and customers. In today’s volatile global trading environments, it is not enough for procurement and supply professionals to simply know the theory behind their profession; they must also be in a position to confidently and effectively apply that knowledge to the benefit of the whole organisation, its stakeholders and customers. This module is designed to test the practical application of procurement and supply concepts and ideas within the practical environments which professionals are expected to perform.
Learning outcomes, assessment criteria and indicative content(s)
1- Demonstrate the application of the procurement cycle.
- Apply the procurement cycle to the practical procurement and supply environment.
2- Demonstrate the application of the key stages of the sourcing process.
- Apply the key stages of the sourcing process to the practical procurement
3- Demonstrate the application of whole life asset management.
- Apply whole life asset management to the practical procurement and supply environment.
4- Demonstrate the application of ethical and responsible sourcing within an organisation.
- Apply ethical and responsible sourcing to the practical procurement and supply environment.
