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CIPS L4M5

L4M5

Exam Code: L4M5

Exam Name: Commercial Negotiation

Updated: Jul 05, 2026

Q&A Number: 387 Q&As

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CIPS L4M5 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Organisational power: comparing the relative power of purchasers and suppliers
  • Explain how the balance of power in commercial negotiations can affect outcomes
Topic 2
  • Setting objectives and defining the variables for a commercial negotiation
  • Use of telephone, teleconferencing or web-based meetings
Topic 3
  • How behaviours should change during the different stages of a negotiation
  • Compare the key communication skills that help achieve desired outcomes
Topic 4
  • 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 5
  • Costing methods such as absorption, marginal or variable and activity-based costing
  • Know how to prepare for negotiations with external organisations
Topic 6
  • Team management and the influence of stakeholdebest alternative to a negotiated agreement (BATNA)rs in negotiations
  • Definitions of commercial negotiation
Topic 7
  • Analyse how to assess the process and outcomes of negotiations to inform future practice
  • Protecting relationships after the negotiation
Topic 8
  • Macroeconomics and its influence on commercial negotiations
  • Contrast the economic factors that impact on commercial negotiations

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

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