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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
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
  • 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 (Q105-Q110):

NEW QUESTION # 105
During the quality assurance of a supplier, Margaret is looking for an international standard thatshows the supplier's commitment to sustainable procurement. What document should the supplier provide to show this?

Answer: B

Explanation:
ISO 20400 is sustainable procurement.
14000 is environment
9001 is quality management
27001 is information security


NEW QUESTION # 106
What type of ratio measures a company's ability to meet short-term obligations, focusing on converting assets to cash?

Answer: B

Explanation:
Liquidity ratios (e.g., current ratio, quick ratio) measure whether a company can cover short-term debts with liquid assets like cash, receivables, and inventory. These ratios provide insight into a supplier's ability to remain operational without defaulting on immediate obligations. Profitability ratios show long-term returns; EPS and dividends per share apply to shareholders, not supply continuity. Responsible sourcing emphasises liquidity as a key measure of supplier stability, as poor liquidity can cause supply interruptions or business failure, jeopardising contracts and buyer obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal, liquidity assessment.


NEW QUESTION # 107
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender.
Which of the following should be considered?

Answer: B

Explanation:
Social value is about benefitting the local community / society. Therefore of those options listed, use of local labour is the most appropriate to consider.


NEW QUESTION # 108
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

Answer: D

Explanation:
A risk of pre-planning an audit is the supplier has time to prepare for it. It's a good thing in that they can get their paperwork in order but the downside is they can overprepare so you don't get a realis-tic representation of what they're doing. One way they can do this is coaching staff in what to say to the auditors.


NEW QUESTION # 109
What might a buyer encounter if the supplier's government has introduced a protectionist measure?

Answer: B

Explanation:
Protectionist measures are policies implemented by governments to protect domestic industries from foreign competition. One common protectionist measure is the imposition of import duties, which are taxes levied on imported goods. These duties make imported products more expensive, encouraging consumers to buy domestic products instead. Buyers sourcing internationally must be aware of such duties as they directly impact the total cost of procurement.
Exact Extract from Study Guide:
"Furthermore, there are many potential cost considerations when importing goods which can include taxes & duties or storage costs. By understanding all key legal, regulatory and organizational requirements prior to sourcing from international suppliers, businesses can ensure compliance while also maximizing cost savings."


NEW QUESTION # 110
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