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| Section | Objectives |
|---|
| Topic 1: Understand compliance issues when sourcing from suppliers | - Ethical sourcing and corporate social responsibility (CSR) - Regulatory and legal compliance - Anti-bribery and anti-corruption measures - Sustainability and environmental considerations - Global sourcing considerations and Incoterms - Codes of conduct and ethical standards - Modern slavery and human rights in supply chains
|
| Topic 2: Understand the key processes that can be applied to the analysis of potential external suppliers | - Supplier appraisal and evaluation methods - Use of Request for Information (RFI), Request for Proposal (RFP) and Request for Quotation (RFQ) - Financial analysis of suppliers - Supplier audits and due diligence - Risk assessment in supplier selection
|
| Topic 3: Understand options for sourcing of requirements from suppliers | - Insourcing vs outsourcing decisions - Factors influencing sourcing decisions - Single, dual and multiple sourcing - Sourcing strategies and approaches
|
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CIPS Ethical and Responsible Sourcing Sample Questions (Q100-Q105):
NEW QUESTION # 100
You have been asked to set some key performance indicators (KPIs) for your local stationery provider and you decide to set the following requirements:
To deliver all orders within a one-hour period
To collect any returns within one hour
Are these KPIs appropriate?
- A. No, because they are not realistic or achievable for a company to fulfil
- B. Yes, because the customer is always right so the supplier should do it
- C. No, because you do not want to make demands and ruin future relations
- D. Yes, because they are local so it should be easy for them if they want the business
Answer: A
Explanation:
KPIs must be realistic, measurable, and achievable to drive performance improvement without creating unfair or unworkable expectations. Requiring delivery and returns within one hour is unlikely to be practical, even for a local supplier, and could increase costs, operational strain, or service failure. Ethical and responsible sourcing promotes setting proportionate KPIs that support continuous improvement and sustainable supplier relationships. Unrealistic KPIs undermine collaboration, damage trust, and may result in non-compliance rather than improved performance.
Reference: CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - performance management; KPIs and supplier relationship management.
NEW QUESTION # 101
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
- A. Yes, you should follow the same procurement process irrespective of the circumstances
- B. No, it is not necessary, as in this case, you are mainly concerned with price
- C. Yes, a weighted points system is always the best way to evaluate suppliers' bids
- D. No, you should only use a weighted points system for high-spend procurement
Answer: B
Explanation:
For low-value, routine purchases where price is the primary consideration, employing a weighted points system may not be necessary. Such systems are more suitable for complex procurements where multiple factors, such as quality, delivery, and sustainability, need to be evaluated alongside price. In the case of purchasing standard items like pens, a straightforward price comparison is typically sufficient.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3.2: The use of weighted points systems for assessment
NEW QUESTION # 102
Added value can be objectively defined. Is this sentence TRUE?
- A. no- added value is always intangible
- B. Yes- added value should be assessed along with price
- C. Yes- added value is the same for all organisations
- D. no - added value may change from one company to another
Answer: D
Explanation:
The correct answer is 'no - added value may change from one company to another'.
Added value is very subjective. What one person thinks is excellent added value, another may not rate highly.
For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.
The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.
NEW QUESTION # 103
Why is it important to consider factors such as environmental, social, governance and ethics when analysing tender proposals from the market?
* To ensure adherence to sustainability initiatives
* To improve the process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain
- A. 2 and 3 only
- B. 3 and 4 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: D
Explanation:
Incorporating Environmental, Social, and Governance (ESG) and ethical considerations into tender analysis is crucial for:
* Adherence to Sustainability Initiatives:Ensuring that suppliers align with the organisation's sustainability goals and legal obligations.
* Risk Identification:Assessing ESG factors helps in identifying potential risks in the supply chain, such as environmental violations or unethical labour practices, which can impact the organisation's reputation and operations.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."
NEW QUESTION # 104
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
- A. Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit
- B. Immediately halt all orders and switch to an alternative source of supply
- C. Allow the supplier to complete current orders while pursuing alternatives
- D. Remove all business and inform press organisations to escalate to government authorities
Answer: A
Explanation:
CIPS promotes a constructive and corrective approach when suppliers fall short of ethical standards, especially on critical issues like human rights. Immediately cutting ties can harm workers further and disrupt supply without addressing root causes. A responsible sourcing approach requires buyers to engage suppliers, escalate the concern, and establish a corrective action plan with monitoring to ensure compliance. Only if the supplier refuses to act or breaches persist should termination occur. This supports continuous improvement, supplier development, and ethical due diligence, reflecting global standards such as the UN Guiding Principles on Business and Human Rights.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - audits, corrective action plans, ethical risk management.
NEW QUESTION # 105
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