CIPS Foundation Diploma
The Foundation Diploma is CIPS’ Level 4 qualification; when you complete it, you will become a Diploma Member of CIPS. It’s intended for people who have previously worked in the supply chain in a largely administrative role, or who have suitable Level 3 qualifications.
By the time you have finished the Foundation Diploma, your supply chain knowledge and skills should allow you to:
- be organised and targeted in further developing your knowledge and skills,
- use a range of specialised skills,
- determine solutions to a variety of unpredictable problems,
- come up with a choice of responses, some of which may be creative, to well defined but often unfamiliar problems,
- evaluate information, using it to plan and develop investigative strategies,
- operate in a range of varied and specific contexts involving unusual and non-routine activities,
- show appropriate judgement in planning, selecting or presenting information, methods or resources,
- organise your own work to goals set for you and set limited goals for others,
- operate within broad general guidelines or functions,
- take responsibility for the nature and quantity of outputs, and
- meet specified quality standards.
If you don't think this is the right qualification for you, try Certificate or Advanced Diploma or Graduate Diploma.

Study programme
There are five units in the Foundation Diploma. You can study them in any order except that Purchasing Contexts must be the last one that you do. It is what CIPS call an “integrative unit”; it is where you show that you can bring your studies of the entire level together.
Developing Contracts in Purchasing and Supply (Course 260)
This unit outlines the complexities of both the legalities and commercial issues of contractual arrangements entered into with external organisations. It provides an underpinning knowledge of the legalities of the formation of contracts as well as the key ingredients of any commercial arrangement – a specification, the contractual terms and key performance indicators.
You will be able to apply a variety of terms to contracts in given situations, and be aware of the significance of a range of different contractual terms that are typically applied to a range of procurements affecting both direct and indirect expenditures. The unit also analyses the processes used for tendering or for requests for proposals from external suppliers through to contract award.
Effective Negotiation in Purchasing and Supply (Course 261)
This unit prepares you to apply a variety of theories relating to negotiation in respect of preparation, planning and participating in the negotiation process. It includes activities such as cost and market analysis, and using information to support the planning of negotiation with suppliers to achieve best value. You will also apply your knowledge of various legal implications affecting negotiations.
By the end of the unit, you should be able to plan, prepare and undertake effective negotiations, demonstrating high levels of personal effectiveness and achieving best value within the supply chain. This includes managing a range of complex relationships, and avoiding conflict while maintaining the balance of power.
Measuring Purchasing Performance (Course 262)
This unit helps you to measure the effectiveness of the supply chain and its contribution towards aiding the competitiveness and effectiveness of the organisation. You will learn to apply a range of measurement techniques used to monitor the performance of a variety of individual suppliers, how they perform against financial targets, compliance to contract/specification, and potential risks that they may present. Measurement will take place on three levels, organisational, functional and individual. You should also be able to provide results that evaluate supplier performance, and make suggestions for future improvements.
Managing Purchasing and Supply Relationships (Course 263)
This unit focuses on developing and managing effective relationships, old and new, within the supply chain. This includes methods for review, identifying opportunities for establishing new relationships, enhancing the performance of the supply chain, and exploring the benefits and risks of relationships.
Purchasing Contexts (Course 264)
This unit enables you to apply the fundamental principles of purchasing and supply in a variety of different contexts, including a range of private sector organisations (multi-nationals and SMEs), the public sector, national and local government, the NHS, and the not-for profit sector (charities and the voluntary sector). You will be able to consider the procurement cycle as it applies to a diverse range of purchased products and services including raw materials, commodities, components, utilities and services, both domestically and in an international context. The underpinning goals are to achieve best value, quality, effectiveness and competitiveness within the broader supply chain, whilst employing and developing transferable best practice.



