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| Section | Objectives |
|---|---|
| Corporate Social Responsibility (CSR) | - CSR frameworks and standards - Stakeholder expectations and governance |
| Ethics in Procurement and Supply | - Codes of conduct and ethical decision-making - Principles of professional ethics |
| Supply Chain Risk and Compliance | - Managing ethical risks in sourcing - Supplier compliance and monitoring |
| Responsible Sourcing | - Sustainability in supply chains - Environmental considerations and impacts - Social responsibility and human rights |
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NEW QUESTION # 21
A restricted tender process involves supplier selection. This process focuses on which of the following?
* Production capacity
* Decommissioning costs
* Total life cost
* Financial stability
Answer: C
Explanation:
Restricted tendering involves filtering suppliers through a prequalification stage and then evaluating proposals. The selection focuses on ensuring suppliers have adequate production capacity and financial stability to deliver on requirements. These are critical to continuity, quality, and risk management.
Decommissioning costs are not typically part of supplier selection, and total life cost is an award criterion considered later in evaluation. By checking production capacity and financial stability, buyers mitigate risks of underperformance or financial collapse. This approach aligns with responsible sourcing, where due diligence ensures suppliers can sustainably meet obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - supplier qualification and restricted tendering.
NEW QUESTION # 22
An organisation within the European Union (EU) wants to import an item from outside of the EU. Which of the following is a valid shipping document?
Answer: A
Explanation:
A Bill of Lading is a critical shipping document in international trade, serving as a receipt for shipped goods and a contract between the shipper and carrier. It is essential for customs clearance and is recognized as a valid document for importing goods into the EU.
Exact Extract from Study Guide:
"The Bill of Lading (B/L) is a document issued by the shipping company to the operating shipper, which acknowledges that the goods have been received on board."
NEW QUESTION # 23
What is a major benefit to using Incoterms when sourcing goods internationally?
Answer: D
Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.
NEW QUESTION # 24
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally.
Which of the following is described by Incoterms? Select THREE.
Answer: A,C,E
Explanation:
Incoterms describe who out of the buer and seller; organises transport and what type of transport this is, who pays for insurance, and who organises duty / tariff arrangements when the goods go through customs. See p.131. Note- some students report a lot of questions on Incoterms in the exam, some say they only had 1. If you can, I'd learn them just to be safe.
NEW QUESTION # 25
There are a number of models that can be used to appraise suppliers before commencing a full tendering process. Which of the following could be considered when appraising a supplier?
* Capacity
* Control
* Compatibility
* Commodity
Answer: D
Explanation:
Capacity and compatibility are critical factors in supplier appraisal. Evaluating these factors ensures that the supplier can meet the buyer's requirements in terms of production capacity and aligns with responsible sourcing by ensuring the supplier's values and practices are compatible with the buyer's expectations.
NEW QUESTION # 26
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