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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
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	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 3	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 4	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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CIPS Ethical and Responsible Sourcing Sample Questions (Q227-Q232):

NEW QUESTION # 227
Which of the following are signs that modern-day slavery might be taking place within the supply chain?
Select THREE.

A. poor quality products
B. workers that live on-site
C. suppliers who speak English as a second language
D. supplier based in a country with a low score on the Corruption Perception Index
E. suspiciously low labour costs

Answer: A,B,E

Explanation:
The correct answers are; suspiciously low labour costs, workers living on site and poor quality products (as this signals that the workforce may be unskilled).
A low score on the CPI is a good thing (high scores are more likely to signify slavery concerns) and just because someone speaks English as a second language doesn't mean you automatically need to be suspicious.
That would be prejudice.

NEW QUESTION # 228
Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?

A. less inventory
B. threat of substitutions
C. improved quality control
D. killset of supplier is higher

Answer: C

Explanation:
One of the biggest advantages to making an item over buying it is 'improved quality control'.
When you make the product yourself, you can set the quality parameters you require and aren't re-stricted to, or dependant on, what the supplier does. The other options are incorrect- making stuff inhouse would mean you hold more inventory. If the supplier has a higher skillset than you, you would outsource. Threat of substitutions wouldn't impact this decision.
For a list of pros and cons relating to the 'make or buy' decision see p.5. This is a hot topic for the exam.

NEW QUESTION # 229
Polygon Incorporated is a new company in the mining industry, which often gets bad press due to issues of sustainability. Which of the following should Polygon Incorporated consider when developing sustainable business practices?

A. people, profit, planet
B. efficiency, effectiveness, impact
C. economic, ethical and environmental
D. fraud, bribery and corruption

Answer: A

Explanation:
The three pillars of sustainability are profit, people and planet. This may also be referred to as social, economic and environmental.

NEW QUESTION # 230
A buyer might opt to do an Invitation to Tender (ITT) rather than a Request for Quotation (RFQ) because ...

A. The supplier market is an oligopoly where a few large suppliers dominate the market
B. Time is of the essence and decisions need to be made quickly without additional stakeholder involvement
C. The nature of the goods or services being purchased is complex and high value
D. The contract will be low value and there are many suppliers, therefore a simpler approach is required

Answer: C

Explanation:
ITT is appropriate for complex/high-value procurements needing detailed submissions and robust evaluation.
RFQ suits simple, well-specified, lower-value buys where price comparison is primary.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - sourcing procedures (RFI/RFQ/ITT) matched to complexity and risk.

NEW QUESTION # 231
AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?

A. Strategic high-value expenditure categories should be prioritised, requiring a closer and more collaborative supplier relationship
B. Regardless of value and importance, vehicle livery should be treated the same as low-value categories
C. Vehicle livery is high value but needs little attention; an arm's length approach is required
D. There are several suppliers, so only moderate time and effort should be spent using a transactional approach

Answer: A

Explanation:
Strategic, high-value categories requiregreater management attention, as they have a significant impact on organisational performance, brand image, and risk exposure. A collaborative relationship allows for innovation, quality improvement, continuity of supply, and alignment with ethical and sustainability objectives. Low-value or non-critical categories are more suited to transactional or arm's length relationships.
Ethical and responsible sourcing requires procurement resources to be prioritised according tovalue and strategic importance, ensuring high-risk categories receive appropriate governance and supplier engagement.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - category management; strategic vs non-critical spend.

NEW QUESTION # 232
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