CIPS Level 4 Diploma in Procurement and Supply L4M5 Question # 47 Topic 5 Discussion
L4M5 Exam Topic 5 Question 47 Discussion:
Question #: 47
Topic #: 5
A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process. Would this be the best course of action?
A.
Yes, as all procurement processes should go through competitive bidding to achieve the best value for money
B.
Yes, the process will be opened up to many suppliers and therefore will result in a cheaper price for the pens
C.
No, competitive bidding should only be used when the value justifies the time spent on the process
D.
No, competitive bidding should only be used in public sector organisations
Competitive bidding is generally recommended for high-value or complex purchases where the cost and time required for the bidding process are justified. For low-value, routine items like pens, the time and resources required for competitive bidding may outweigh the potential cost savings, as noted in CIPS best practices. Hence, Option C is the best answer.
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