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| Section | Objectives |
|---|---|
| Topic 1: Responsible Sourcing | - Social responsibility and human rights - Environmental considerations and impacts - Sustainability in supply chains |
| Topic 2: Supply Chain Risk and Compliance | - Managing ethical risks in sourcing - Supplier compliance and monitoring |
| Topic 3: Ethics in Procurement and Supply | - Principles of professional ethics - Codes of conduct and ethical decision-making |
| Topic 4: Corporate Social Responsibility (CSR) | - Stakeholder expectations and governance - CSR frameworks and standards |
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NEW QUESTION # 291
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?
Answer: A
Explanation:
tactical is the correct answer; items that are short-term or low value are considered tactical.
Strategic sourcing is long term and high value.
Outsourcing is moving a key business function to an external company.
Insourcing is bringing a previously outsourced part of the company back in-house.
NEW QUESTION # 292
Which of the following should form part of the initial evaluation process for non-domestic vendor supply proposals?
Answer: C
Explanation:
In the initial evaluation of non-domestic vendor supply proposals, understanding and applying the correct Incoterm classifications is crucial. Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international transactions, including the point at which risk transfers from seller to buyer.
Evaluating these terms early ensures clarity in logistics, costs, and risk management.
Exact Extract from Study Guide:
"When sourcing from international suppliers, it is important to be aware of the key legislative and regulatory requirements in both the home country as well as the country of origin. Depending on product and service type, for example, you may need to consider product safety measures, industry regulations, and environmental regulations. In terms of organizational requirements, it is important to pay attention to details such as applicable payment terms and local labor practices."
NEW QUESTION # 293
A supplier of copper cable has notified the buyer that the price of the cable is increasing by 6% due to increases in the cost of copper, a key component of the cable.
Which of the following indices could be utilised to check the validity of the supplier's proposed changes in the price of the cable?
Answer: D
Explanation:
Commodity Price Indices track movements in the prices of raw materials such as metals, oil, and agricultural products. Since copper is a traded commodity, changes in its market price can be independently verified through commodity indices. This allows buyers to validate supplier claims objectively and ensure price increases are justified and transparent. Purchasing Managers' Index measures business confidence, CPI measures consumer inflation, and stock indices reflect equity performance rather than raw material costs.
Ethical and responsible sourcing requires procurement professionals to use reliable market data to challenge unjustified price increases and maintain fairness in supplier negotiations.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - market analysis, price indices, cost drivers.
NEW QUESTION # 294
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 # 295
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.
Answer: D,E
Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.
NEW QUESTION # 296
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