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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 2	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 3	Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 4	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q129-Q134):

NEW QUESTION # 129
Incoterms are divided into four main groups to follow movement of goods covering exporter's premises, export/import points, and cost/risk. Which letters represent the groups?

A. B, C, F, C
B. A, B, C, D
C. E, F, B, C
D. E, F, C, D

Answer: D

Explanation:
Incoterms are grouped into four categories:
* E: Departure (EXW)
* F: Main carriage unpaid (FCA, FAS, FOB)
* C: Main carriage paid (CFR, CIF, CPT, CIP)
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - Incoterms groupings and risk allocation.

NEW QUESTION # 130
A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asksQuestionsrelating to how they will deliver the service and gives a deadline for bids to be submitted. Which document have the suppliers ben sent?

A. Invitation to Quote
B. Request for Quotation
C. Invitation to Tender
D. Request for Tender

Answer: C

Explanation:
This is an Invitation to Tender.
The only other real document listed in Request for Quotation. This is incorrect because the document asks questions relating to how they will deliver the service. This means price isn't the only factor, which is the case for a RfQ.
Request for Tender and Invitation to Quote are not real things.

NEW QUESTION # 131
What are the risks of outsourcing?
* Loss of control of a project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

A. 3 and 4 only
B. 1 and 4 only
C. 1 and 2 only
D. 2 and 3 only

Answer: B

Explanation:
Outsourcing can lead to a loss of control over certain aspects of a project, as the organization relies on external parties to deliver services or products. Additionally, sharing sensitive information with third-party vendors increases the risk of data breaches or loss of private information. While there may be concerns about assets or future business opportunities, the primary risks in outsourcingrelate to control and information security.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 3.2: Risks Associated with Outsourcing

NEW QUESTION # 132
Which remedial actions may be undertaken by a purchasing organisation following a supplier audit? (Select TWO)

A. Employing the supplier's staff for job training
B. Violating the terms of the supplier contract
C. Running supplier development programmes
D. Daily brainstorming meetings with the supplier
E. Defining corrective actions for the supplier

Answer: C,E

Explanation:
When supplier audits reveal issues, buyers should implement constructive measures. Supplier development programmes (A) help improve performance through training, mentoring, and joint improvement initiatives.
Corrective action plans (E) outline specific steps and timelines to address identified gaps. Options like hiring supplier staff or informal brainstorming do not provide structured improvements, while violating contracts would undermine governance. Responsible sourcing emphasises supplier engagement and continuous improvement, ensuring suppliers meet ethical, quality, and sustainability expectations rather than simply penalising them.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - supplier audits and corrective actions.

NEW QUESTION # 133
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

A. Complete Due-Diligence on all new suppliers
B. Only work with suppliers who have a published Anti-Slavery policy
C. Complete formal tenders to find the best suppliers
D. Only work with known suppliers

Answer: A

Explanation:
Completing Due Diligence checks will help guard against concerns about unethical business practices.
Not all companies will have a published Anti-Slavery policy- this is only required for large companies.
Known suppliers might have issues that you don't know about so you should always do due-diligence checks on everyone you work with Formal tenders won't sort out ethical issues unless specifically addressed within the tender and strong contract management is put in place afterwards.

NEW QUESTION # 134
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