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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 the key processes that can be applied to the analysis of potential external 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
  • 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 (Q158-Q163):

NEW QUESTION # 158
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?

Answer: B

Explanation:
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.
The other options are wrong:
1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi-sation is forced to comply with CIPS.
2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible
3) ISO 14001 is quality management so is irelevent.


NEW QUESTION # 159
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
* Review the insurance clauses in the contract
* Check that the supplier's internal policies are up to date
* Check the supplier's conflict of interest register for their contract
* Review the non-disclosure agreement for their contract

Answer: A

Explanation:
Regularly checking supplier policies and conflict of interest registers helps ensure that suppliers are upholding ethical standards, which supports responsible sourcing practices. This governance activity aligns with ethical guidelines to promote transparency and prevent conflicts that could affect the integrity of the supply chain.


NEW QUESTION # 160
When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?

Answer: A

Explanation:
In a 'Credit Account' payment mechanism- the supplier receives payment after the goods are delivered, in line with agreed payment terms (which may be 30 days or something like that).


NEW QUESTION # 161
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: C

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 # 162
Which of the following would be considered a strategic sourcing activity?

Answer: B

Explanation:
a factory ordering a new machine is the correct answer.
Strategic sourcing is for high value, high risk items. The other options given are tactical sourcing as they are low value (eggs, paper and plastic cups).
See p.3 for the differences between tactical and strategic sourcing


NEW QUESTION # 163
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