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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • 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.
Topic 2
  • 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 3
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 4
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q112-Q117):

NEW QUESTION # 112
Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these. Which of the following items would be C category items?

Answer: B

Explanation:
The C category is the 'tail spend' - it represents a large number of suppliers of small value items.
I recommend giving this a read ABC Classification & ABC Method | CIPS


NEW QUESTION # 113
A procurement manager suggests implementing an ISO environmental standard to improve procurement practices. Some colleagues worry about complexity and resistance. Should the company proceed?

Answer: A

Explanation:
ISO environmental standards (e.g., ISO 14001) provide a structured framework for managing environmental responsibilities. They support sustainability goals by embedding continual improvement, legal compliance, and stakeholder trust. They are relevant to organisations of all sizes and sectors, not just large firms. While they do not automatically guarantee compliance, they enhance systematic control, training, and supplier engagement. Resistance and complexity can be overcome with phased implementation and awareness- building. CIPS emphasises that adoption of recognised standards demonstrates responsible sourcing, aligns with CSR strategies, and reassures stakeholders about commitment to sustainability.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - standards, sustainability frameworks, ISO principles.


NEW QUESTION # 114
A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?

Answer: C

Explanation:
Request for Quotations can include more details than just prices. They can include specs and technical drawings and samples. It's like saying 'we can give you this price with these conditions'.
The other no answer is wrong because RfQ don't always include samples. A sample wouldn't be possible for a quote for an IT consultancy piece of work.


NEW QUESTION # 115
Ramesh is an IT category manager within the UK's NHS and is responsible for the procurement of a new high-value network system. Ramesh has concluded that the use of a restricted tender is the most appropriate.
Which of the following statements is true for a restricted tender process?

Answer: A

Explanation:
Restricted tendering is a two-stage process: first, a pre-qualification stage to ensure only capable, compliant suppliers are invited; second, the issue of the ITT to that shortlist. This method is appropriate when requirements are complex, high-value, or where assurance of supplier competence is essential. It is not based solely on price and does not rely on limited supplier numbers but on filtering through qualification. This balances transparency and efficiency, avoiding wasteful evaluation of unsuitable suppliers while still maintaining competitive tension. CIPS L4M4 highlights that restricted tendering strengthens governance, improves efficiency, and ensures due diligence in supplier selection.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - tendering methods (open, restricted, negotiated).


NEW QUESTION # 116
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: A

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 # 117
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