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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential 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
  • 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.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q187-Q192):

NEW QUESTION # 187
Which of the following should form part of the initial evaluation process for non-domestic vendor proposals?

Answer: B

Explanation:
When sourcing internationally, one of the first evaluation considerations is the use of Incoterms (B), which define the allocation of transport costs, risks, and responsibilities between buyer and supplier. They are essential for evaluating total cost and risk implications of international offers. Contract management and supplier development are post-award activities, while benchmarking is an internal tool. Responsible sourcing stresses the importance of clear Incoterm agreements to avoid disputes, ensure compliance, and fairly allocate responsibilities in global supply chains.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - Incoterms in international evaluation.


NEW QUESTION # 188
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?

Answer: A

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 # 189
The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?

Answer: A

Explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated by dividing current assets by current liabilities. In this case:
Current Assets = $300
Current Liabilities = $150
Current Ratio = 300 ÷ 150 = 2.0
This indicates that the supplier has twice as many current assets as current liabilities, suggesting good short- term financial health.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers


NEW QUESTION # 190
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?

Answer: D

Explanation:
weighted points systems for assessments should add up to 100. This is 100%.
An example is how this would work is
Price = 50%
Health and Safety questions= 30%
Qualifications = 20%


NEW QUESTION # 191
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies.
Will this reduce the risk posed to Khalid?

Answer: A

Explanation:
So you can immediately discount the options starting with yes.
Quoting in GBP / £ rather than the supplier's currency reduces the risk to the buyer. It will not re-duce the cost of the import, and will probably increase it as the supplier is then taking on the risk of currency fluctuations.


NEW QUESTION # 192
......

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