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| Section | Objectives |
|---|---|
| Responsible Sourcing | - Social responsibility and human rights - Sustainability in supply chains - Environmental considerations and impacts |
| Ethics in Procurement and Supply | - Principles of professional ethics - Codes of conduct and ethical decision-making |
| Supply Chain Risk and Compliance | - Managing ethical risks in sourcing - Supplier compliance and monitoring |
| Corporate Social Responsibility (CSR) | - CSR frameworks and standards - Stakeholder expectations and governance |
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NEW QUESTION # 145
Why should procurement collate and review the buying organisation's historic supplier spend data prior to tendering?
* To identify opportunities where savings can be achieved
* To ensure suppliers deliver goods and services on time
* To eliminate supplier corruption and favouritism
* To make informed decisions about the suppliers to work with
Answer: D
Explanation:
Reviewing historical supplier spend data enables procurement professionals to identify areas wherecost savings can be achieved by analyzing past expenditures and supplier performance. This analysis also aids in making informed decisions about future supplier engagements by understanding previous spending patterns and supplier reliability.
Exact Extract from Study Guide:
"Spend analysis is a process that analyses the historical spend data of your organisation to provide answers to questions concerning spend visibility, compliance, and cost-saving opportunities."
NEW QUESTION # 146
Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?
Answer: D
Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.
NEW QUESTION # 147
Economic indices track a market's stability and health. One of these indices is the Consumer Price Index (CPI). Which of the following are aspects of the Consumer Price Index? Select TWO that apply.
Answer: A,E
Explanation:
The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a market basket of goods and services. It reflects price variations in specific geographical locations and tracks the weighted average prices of selected commodities, providing insights into inflation and cost of living.
Exact Extract from Study Guide:
"The Consumer Price Index (CPI) tracks variations in prices for a range of consumer goods and services over time, in a particular geographic location."
NEW QUESTION # 148
The balance sheet (statement of financial position) is one of the financial statements used in assessing a supplier's financial stability. The balance sheet contains information on such items as ...
Answer: C
Explanation:
A balance sheet sets out assets, liabilities and equity at a point in time. Current (short-term) liabilities such as overdrafts and tax creditors are part of it. Cash receipts (A) sit in cash-flow statements; expenses and profit (B) are in the income statement; ratios (C) are derived metrics, not items on the statement.
Reference: CIPS L4M4 Study Guide (v2): LO "Application" - supplier financial appraisal; interpreting the statement of financial position.
NEW QUESTION # 149
When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?
Answer: A
Explanation:
In a 'Credit Account' payment mechanism- the supplier receives payment after the goods are delivered, in line with agreed payment terms (which may be 30 days or something like that).
NEW QUESTION # 150
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