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NEW QUESTION # 35
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?
Answer: D
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 # 36
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
Answer: B,E
Explanation:
Price and Quality are the two considerations when marking a competitive tender.
Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.
NEW QUESTION # 37
A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?
Answer: A
Explanation:
A Bill of Exchange is a payment instruction - it says who will pay whom and when.
Bill of Exchange Definition: Examples and How It Works (investopedia.com)
NEW QUESTION # 38
A prequalification questionnaire can allow a buyer to determine whether or not a potential supplier shares the same ethical values at an early stage of a procurement process. Obtaining confirmation that a supplier has not previously been convicted of breaches of modern slavery legislation belongs to which form of evaluation criteria?
Answer: C
Explanation:
Modern slavery and human rights are social sustainability issues. Under the triple bottom line (environmental, social, economic), the social dimension covers labour rights, working conditions, equality, and compliance with modern slavery laws. Responsible sourcing requires buyers to integrate such social criteria in supplier prequalification to prevent unethical practices from entering supply chains. Environmental criteria cover impacts like carbon and waste; economic focuses on cost and competitiveness; quality addresses technical performance. Including modern slavery checks at the prequalification stage reflects due diligence and ensures alignment with legal and ethical obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - triple bottom line; ethical sourcing and social responsibility.
NEW QUESTION # 39
Weighted points systems can be applied to evaluate and compare potential suppliers. For which of the following factors would it be appropriate to use this method?
* Financial stability
* Supplier reliability
* Market demand
* Negotiation styles
Answer: D
Explanation:
Financial stability and supplier reliability are quantifiable factors suited to weighted points systems, allowing procurement professionals to objectively assess and compare suppliers. This method aligns with ethical sourcing practices by promoting fairness and transparency in supplier selection.
NEW QUESTION # 40
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