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| Topic | Details |
|---|
| 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.
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| Topic 2 | - 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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| 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 | - Understand the key processes that can be applied to the analysis of potential external suppliers:
|
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CIPS Ethical and Responsible Sourcing Sample Questions (Q55-Q60):
NEW QUESTION # 55
The Universal Declaration of Human Rights means that member states cannot restrict their citizens of any of the rights listed. Which of the following rights may apply to employees who make a complaint about unfair pay and conditions that are not comparable to others in the company?
- A. The right to beliefs
- B. The right to be treated equally
- C. The right to free speech and expression
- D. The right to freedom
Answer: B
Explanation:
The Universal Declaration of Human Rights (UDHR) Article 23(2) states that "Everyone, without any discrimination, has the right to equal pay for equal work." This underscores the principle of equality in the workplace, ensuring that employees are treated equally regarding pay and conditions. Therefore, employees raising concerns about unfair pay compared to their colleagues are exercising their right to be treated equally.
Reference:
Universal Declaration of Human Rights, Article 23(2):
NEW QUESTION # 56
For what type of purchase would you use a Futures Exchange?
- A. Tail Spend
- B. High value, high risk
- C. Commodity
- D. Capital Expenditure
Answer: C
Explanation:
Futures exchanges are used to trade commodities. It's when a buyer and supplier agree a price and deal for something in the future. For example a carrot farmer may agree to sell his carrots to Gary in 3 months time when they're finished growing. It's used when the product / commodity isn't ready yet.
It's also used for hedging and other complex financial stuff- but you don't need to know that yet. Commodities and Future contracts are a big part of L5M4 to warn you though. Futures Contract Definition: Types, Mechanics, and Uses in Trading (investopedia.com)
NEW QUESTION # 57
What information would you expect to find on a supplier's response to a 'Request for Information'? Select TWO
- A. their ethical and sustainability policies
- B. their marketing strategy
- C. their capability and capacity to fulfil a contract
- D. detailed information regarding their costing structure
Answer: C,D
Explanation:
A RFI typically finds the following information from potential suppliers; ethical and sustainability policies and their capacity / capability to fulfil a contract. It could also include financial position, mission and vision.
NEW QUESTION # 58
A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance. Which Incoterm has been agreed?
- A. EXW - Ex Works
- B. FCA - Free Carrier
- C. FOB - Free on Board
- D. CIP - Carriage and Insurance Paid
Answer: A
Explanation:
Under the EXW (Ex Works) Incoterm, the buyer assumes responsibility for transportation and export clearance from the seller's premises. This term aligns with cost-saving measures and the buyer's internal capabilities for logistics, supporting efficient and responsible sourcing.
NEW QUESTION # 59
Why do tenders often have longer timescales in the public sector when compared with those of the private sector?
- A. There is a more detailed debrief requirement in the public sector
- B. There is wider stakeholder involvement in the public sector
- C. Regulation of the public sector usually dictates minimum timescales
- D. All public sector purchases are mandated to use a tendering procedure
Answer: C
Explanation:
Public sector procurement is governed by specific regulations that stipulate minimum timescales for various stages of the tendering process. These regulations are designed to ensure transparency, fairness, and adequate time for suppliers to prepare their bids. For instance, under the Procurement Act 2023, certain procedures have defined minimum periods for tender submissions to allow sufficient time for supplier participation.
Exact Extract from Study Guide:
"Public sector procurement is subject to specific regulations that dictate minimum timescales for tendering processes to ensure fairness and transparency."
NEW QUESTION # 60
......
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