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| Section | Objectives |
|---|---|
| Topic 1: Procurement Technology and Innovation | - Digital procurement tools
|
| Topic 2: Procurement Process and Sourcing | - Supplier selection and evaluation
|
| Topic 3: Supplier Relationships and Performance | - Performance improvement
|
| Topic 4: Contracting and Legal Principles | - Contract management
|
| Topic 5: Procurement and Supply Context | - Role of procurement in organisations
|
| Topic 6: Risk, Ethics and Sustainability | - Procurement risk management
|
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NEW QUESTION # 162
What Incoterm applies here?
The goods are considered 'delivered' at the point of release from the supplier's premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance - this must be arranged by the buyer. The risk is on the buyer from this point.
a) EXW - Ex Works
b) FCA - Free Career
c) CPT - Carriage Paid To
d) CIP - Carriage and Insurance Paid to
Answer: B
NEW QUESTION # 163
What Incoterm applies here?
The supplier is responsible of placing the goods in the hands of a chosen carrier by the buyer, at which point the buyer takes on the risk.
Answer: B
NEW QUESTION # 164
Why is it important to have adequate procedures in place within an organization in relation to bribery?
Answer:
Explanation:
See the answer in explanation.
Explanation:
Bribery is the act of giving someone something of value to persuade them to do something that benefits you.
Ethical and responsible sourcing requires conducting due diligence on bribery before going into contractual relationship because failure to this might lead to loss in reputation.
In other for an organization to defend itself against a case of suspected bribery, the United Kingdom bribery Act introduced in 2010 suggests that organizations should have adequate procedures' in place.
The following are six procedures an organization should have in place to be able to defend itself against bribery
1) Proportionate procedure
2) Top level commitment
3) risk assessment
4) due diligence
5) communication
6) monitoring and reviewing
* Refer to the question column for response
NEW QUESTION # 165
Create a list of tangible, intangible, direct and indirect needs within an organization with which you are familiar.
Answer:
Explanation:
See the answer in explanation.
Explanation:
Tangible costs are the cost an organization incur acquiring items that can be physically touched and or seen.
Examples includes; 1) Capital Purchase 2) Raw materials 3) Sundry items 4) Vehi-cles/transport 5) Utilities Intangible costs are the cost an organization incurs acquiring something that cannot be physically seen or touched. Examples include; 1) Insurance 2) Marketing 3) Research and development 4) Salaries and/pension
5) Services 6) Training.
Direct costs - These are costs that an organization incurs acquiring product and services directly attributable
/traceable to its production, for example, the cost of labour and materials directly uses to produce the goods
/services which the organization sells. In the case of buying and running a Lorry for transport fleet, this would be 1) total cost of acquiring the lorry,) Tooling 3) Operation.
Indirect cost - These are costs that are not directly associated to production, for example, materials and services not used in production, labour/ staff cost not directly attributed to production, such as management, sales and marking, ICT support, rents. In the case of buying and running a Lorry for transport fleet. Examples are; 1) Insurance 2) Disposal.
NEW QUESTION # 166
Why do some specifications need to adapt?
Answer:
Explanation:
Specification is a detailed description of what is required or needed. Due to certain reasons, needs sometimes increase in importance or lose their essence, therefore specifications need to adapt and develop to reflect the changing requirements of the consumer and also to comply with regulations and legislatures as this are amended.
Standard, regulations and legislation are continually evolving and new updated versions of existing guideline, as well as completely new initiatives one being released.
NEW QUESTION # 167
......
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