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NEW QUESTION # 29
Chantelle is a procurement apprentice working in the public sector for an education organisation. As a result of studying towards the CIPS qualification, Chantelle has become aware of the importance of incorporating sustainability and environmental award criteria into tender exercises and has informed her manager of this.
For the purchase of IT supplies, which requirement could be evaluated within the sustainability and environmental award criterion?
Answer: A
Explanation:
Incorporating sustainability and environmental criteria into procurement decisions is essential for promoting responsible sourcing practices.Consolidated deliveryrefers to combining multiple shipments into a single delivery, which can significantly reduce the carbon footprint associated with transportation. By minimizing the number of deliveries, organizations can decrease fuel consumption and emissions, aligning with environmental sustainability goals.
This practice is particularly relevant in the procurement of IT supplies, where frequent, small deliveries can be consolidated to improve efficiency and environmental performance. Evaluating suppliers based on their ability to provide consolidated deliveries demonstrates a commitment to sustainable procurement practices.
References:
CIPS Study Guide: Ethical and Responsible Sourcing - Study Guides - CIPS Quizlet: CIPS L4M4 Ethical and Responsible Sourcing Flashcards
NEW QUESTION # 30
Avram is a buyer for a private sector electrical components company and is promoting the advantages of competitive bidding.
When is competitive bidding appropriate?
Select TWO that apply.
Answer: A,E
Explanation:
Competitive bidding is most appropriate when there is asufficient number of capable suppliersto create genuine competition and whenadequate timeis available to conduct the process fairly and transparently.
These conditions allow suppliers to prepare robust bids and enable buyers to evaluate proposals properly.
Competitive bidding is less suitable where specifications are unstable or urgent decisions are required. Ethical and responsible sourcing emphasises proportionality and fairness, ensuring competition is used where it adds value and does not compromise delivery, governance, or stakeholder needs.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - competitive tendering; appropriateness of sourcing routes.
NEW QUESTION # 31
Intra-company trading allows business units within a large enterprise to supply goods or services to another.
What are the likely objectives of intra-company trading?
* Enhances production capacity utilisation
* Offsets some of the fixed costs of the supplying entity
* Compensates the supplying unit for the less effective technology applied
* Ensures internal technology always out-performs that of external suppliers
Answer: B
Explanation:
Intra-company trading aims to optimize internal resources by enhancing production capacity utilization and offsetting fixed costs. By supplying goods or services internally, organizations can achieve economies of scale and better allocate resources. However, compensating for less effective technology or ensuring superior internal technology over external suppliers are not primary objectives of intra-company trading.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.1.2: Make or buy decisions and the role of intra-company trading
NEW QUESTION # 32
A chief procurement officer (CPO) reviews a tender process and recommendation before making the final submission to the board of directors for approval. The CPO notices that the evaluation team assessed technical and financial capacity but did not conduct an assessment and due diligence on the supplier's environmental, social, governance, anti-bribery, and corruption practices and processes. The CPO has decided to forward the report to the board for approval and seek reassurance from the supplier at a later date once the contract has been signed. Was the CPO's decision the correct one?
Answer: A
Explanation:
Ethical and responsible sourcing requires that environmental, social, governance, anti-bribery and corruption (ESG/ABC) considerations are assessed before contract award, not after. Failure to conduct due diligence exposes the buying organisation to reputational damage, legal sanctions, financial losses, and supply chain disruption. Seeking reassurance post-contract removes leverage and weakens governance controls. CIPS guidance stresses that supplier evaluation must be holistic, covering technical, financial, and ethical compliance to ensure risks are identified and mitigated early. Strategic contracts, in particular, demand robust due diligence to protect organisational integrity and stakeholder trust.
Reference: CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - supplier due diligence; ESG and reputational risk management.
NEW QUESTION # 33
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
Answer: A
Explanation:
Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations.
'Preferential Origin' goods have no duties or tariffs.
The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.
NEW QUESTION # 34
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