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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 (Q78-Q83):

NEW QUESTION # 78
Tracey Collum is a procurement professional and married to Nick Collum.
Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids.
After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems.
Nick has asked Tracey to award the contract to Supplier X.
What should Tracey do?

Answer: B

Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.


NEW QUESTION # 79
Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

Answer: A

Explanation:
A credit rating is one of many tools used to assess a supplier's financial health. Responsible sourcing requires a comprehensive assessment of suppliers, considering multiple factors, to ensure a balanced and ethical approach to supplier selection.


NEW QUESTION # 80
It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.

Answer: C,D

Explanation:
Informing suppliers of non-conformances and improvement opportunities supports responsible sourcing by promoting continuous improvement. Preparing a report for supplier review also aligns with transparency and collaborative improvement, integral to ethical sourcing standards.


NEW QUESTION # 81
One approach to managing supply risk is by having multiple suppliers of a given product or category of requirements. This approach has both advantages and disadvantages. Which of the following conditions would be a reason for multiple sourcing arrangements?

Answer: D

Explanation:
Multiple sourcing is most effective for strategically important, high-value requirements such as raw materials.
These are continuous, large-volume needs where supply disruptions can be costly and damaging. By using more than one supplier, buyers reduce dependency risks, improve resilience, and increase competitive leverage. One-off requirements like machinery (A) don't benefit from multiple sourcing, while options B and D describe disadvantages rather than reasons for adopting the approach. Responsible sourcing promotes balancing cost, risk, and resilience - and multiple sourcing is a key strategy for critical, ongoing supply categories.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies and risk management.


NEW QUESTION # 82
Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector. Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

Answer: C

Explanation:
DDP (Delivered Duty Paid) requires the supplier to cover all delivery costs, including import duties and taxes.
This term ensures that the buyer receives the goods without additional charges, aligning with public sector procurement practices for cost-effective and transparent sourcing.


NEW QUESTION # 83
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