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CIPS L4M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Macroeconomics and its influence on commercial negotiations Contrast the economic factors that impact on commercial negotiations
Topic 2	Understand key approaches in the negotiation of commercial agreements with external organisations Sources of conflict that can arise in the work of procurement and supply
Topic 3	Setting targets and creating a Collaborative win-win integrative approaches to negotiations
Topic 4	Setting objectives and defining the variables for a commercial negotiation Use of telephone, teleconferencing or web-based meetings
Topic 5	Differentiate between the types of approaches that can be pursued in commercial negotiations Distributive win-lose, distributive approaches to negotiation
Topic 6	How behaviours should change during the different stages of a negotiation Compare the key communication skills that help achieve desired outcomes
Topic 7	Team management and the influence of stakeholdebest alternative to a negotiated agreement (BATNA)rs in negotiations Definitions of commercial negotiation
Topic 8	Organisational power: comparing the relative power of purchasers and suppliers Explain how the balance of power in commercial negotiations can affect outcomes
Topic 9	Analyse the application of commercial negotiations in the work of procurement and supply Negotiation in relation to the stages of the sourcing process
Topic 10	Analyse how to assess the process and outcomes of negotiations to inform future practice Protecting relationships after the negotiation
Topic 11	Building relationships based on reputation, and trust Repairing a relationship The relationship spectrum
Topic 12	Costing methods such as absorption, marginal or variable and activity-based costing Know how to prepare for negotiations with external organisations
Topic 13	How purchasers can improve leverage with suppliers The importance of power in commercial negotiations

Reference: https://www.cips.org/learn/qualifications/diploma-in-procurement-and-supply/commercial-negotiation-l4m5/

CIPS Commercial Negotiation Sample Questions:

Question #1

At the first stage of CIPS Procurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?

A. Undertaking 'reverse marketing'
B. Evaluating the interests from suppliers
C. Demand management
D. Deciding whether RFQ or ITT should be used

Reveal Solution Discussion 0

Correct Answer: C 🗳️