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You must improve your skills and knowledge to stay current and competitive. You merely need to obtain the L4M4 certification exam badge in order to achieve this. You must pass the Ethical and Responsible Sourcing (L4M4) exam to accomplish this, which can only be done with thorough exam preparation. Download the CIPS L4M4 Exam Questions right away for immediate and thorough exam preparation. We have thousands of satisfied customers around the globe so you can freely join your journey for the Ethical and Responsible Sourcing (L4M4) certification exam with us.
| Topic | Details |
|---|
| Topic 1 | - Understand the key processes that can be applied to the analysis of potential external suppliers:
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| 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.
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| Topic 3 | - 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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| 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 (Q221-Q226):
NEW QUESTION # 221
Which remedial actions may be undertaken by a purchasing organisation following a supplier audit? (Select TWO)
- A. Violating the terms of the supplier contract
- B. Daily brainstorming meetings with the supplier
- C. Employing the supplier's staff for job training
- D. Running supplier development programmes
- E. Defining corrective actions for the supplier
Answer: D,E
Explanation:
When supplier audits reveal issues, buyers should implement constructive measures. Supplier development programmes (A) help improve performance through training, mentoring, and joint improvement initiatives.
Corrective action plans (E) outline specific steps and timelines to address identified gaps. Options like hiring supplier staff or informal brainstorming do not provide structured improvements, while violating contracts would undermine governance. Responsible sourcing emphasises supplier engagement and continuous improvement, ensuring suppliers meet ethical, quality, and sustainability expectations rather than simply penalising them.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - supplier audits and corrective actions.
NEW QUESTION # 222
A buyer is assessing a supplier's proposal in terms of any added value offered. Which of the following are examples of added value?
* The supplier has submitted the lowest price compared to competitors
* The supplier is offering solutions to reduce costs in the supply chain
* The supplier is committed to reducing plastic and waste in operations
* The supplier is personally known by the Operations Director
- A. 3 and 4
- B. 1 and 3
- C. 2 and 3
- D. 1 and 4
Answer: C
Explanation:
Added value refers to benefits beyond basic price and compliance. Examples include suppliers proposing innovations or cost-reduction strategies in the supply chain (2) and sustainability commitments like reducing plastics and waste (3). Lowest price is part of baseline evaluation, not added value. Personal connections (4) are not a valid or ethical procurement criterion and could breach fairness. Responsible sourcing emphasises identifying suppliers who contribute to continuous improvement, sustainability, and efficiency beyond contractual minimums.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - evaluating added value in supplier proposals.
NEW QUESTION # 223
A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was ยฃ1m but one supplier has submitted a price of ยฃ200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?
- A. award the bid a 0 for price
- B. investigate the low bid
- C. award the contract to the low bid as this represents better value for money
- D. automatically dismiss the low bid
Answer: B
Explanation:
You should investigate automatically low tenders by clarifying the bid with the supplier. It could be they have misunderstood the requirement. Or the bid could be genuine and they can really provide best value for money.
But without enquiring, you just don't know.
NEW QUESTION # 224
Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.
- A. payments by electronic bank transfer
- B. lower operating costs
- C. importation rules and tariffs
- D. exportation rules and tariffs
Answer: C
Explanation:
The correct answer is importation rules and tariffs. This is because in offshoring some of the manufacturing will be done in another country then shipped back to the UK. The products will have to go through customs so may be subject to tariffs and duties.
Steff's not exporting anything in the scenario and paying electronically and getting lower costs are not RISKS.
NEW QUESTION # 225
Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?
- A. The buyer takes responsibility for the goods after they are loaded on the ship, plus all subsequent costs, including freight charges
- B. The buyer takes responsibility for transferring the goods from the seller's premises to the ship, plus all subsequent costs
- C. The buyer takes responsibility for taking the goods from the departure quayside to the ship, plus all subsequent costs
- D. The buyer takes responsibility for the goods after they are loaded on the ship, plus subsequent costs, excluding freight charges
Answer: A
Explanation:
Under FOB (Free on Board), the buyer assumes responsibility once the goods are loaded onto the ship, including costs and risks beyond this point. This Incoterm is commonly used in international trade, helping both parties clarify responsibilities and promote fair risk distribution.
NEW QUESTION # 226
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