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| Topic | Details |
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| 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.
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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 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 (Q104-Q109):
NEW QUESTION # 104
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
- A. Immediately halt all orders and switch to an alternative source of supply
- B. Remove all business and inform press organisations to escalate to government authorities
- C. Allow the supplier to complete current orders while pursuing alternatives
- D. Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit
Answer: D
Explanation:
CIPS promotes a constructive and corrective approach when suppliers fall short of ethical standards, especially on critical issues like human rights. Immediately cutting ties can harm workers further and disrupt supply without addressing root causes. A responsible sourcing approach requires buyers to engage suppliers, escalate the concern, and establish a corrective action plan with monitoring to ensure compliance. Only if the supplier refuses to act or breaches persist should termination occur. This supports continuous improvement, supplier development, and ethical due diligence, reflecting global standards such as the UN Guiding Principles on Business and Human Rights.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - audits, corrective action plans, ethical risk management.
NEW QUESTION # 105
What is the best way to prevent potential issues of conflicts of interest?
- A. do not hire family members
- B. create a risk register
- C. do not work with suppliers who have relationships with the procurement team
- D. openly declare potential conflicts
Answer: D
Explanation:
The best way to deal with potential Conflicts of Interest is to openly declare these. Just because you have a relationship with someone doesn't mean this is going to be an issue or lead to fraud, but it is a good idea to keep a written record of these.
It wouldn't be a risk register, because how can you rate someone's risk of doing something dodgy? Risk registers are for objective risks such as Health and Safety.
NEW QUESTION # 106
Which award criteria can be applied when sourcing requirements from external suppliers?
- A. Plans and manpower numbers
- B. Price and total life-cycle costs
- C. Understanding of supplier operations
- D. Delivery promises of goods
Answer: B
Explanation:
Evaluating total life-cycle costs, including initial purchase price and long-term maintenance, aligns with ethical sourcing by promoting cost-effective and sustainable procurement. It ensures value for money and supports environmentally and financially responsible sourcing practices.
NEW QUESTION # 107
Which instance would multiple sourcing be the most applicable approach?
- A. Sourcing for high-cost, strategically important components
- B. Sourcing a specialised, unique component where the supplier's knowledge is key
- C. Sourcing for the provision of a service, where close relationship management is required
- D. Sourcing for components required at short notice
Answer: D
Explanation:
Multiple sourcing is particularly beneficial when requirements are time-sensitive and availability is critical.
By engaging more than one supplier, the buyer ensures supply continuity, reduces dependency on a single provider, and improves responsiveness to urgent needs. While sole or single sourcing may suit high-cost strategic components or unique expertise, these arrangements increase dependency risks. For short-notice requirements such as consumables or basic components, multiple sourcing provides resilience and flexibility.
CIPS L4M4 stresses that sourcing strategy should reflect risk, demand variability, and supply criticality, and multiple sourcing directly addresses supply risk mitigation.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies, single vs multiple sourcing.
NEW QUESTION # 108
One of the typical selection criteria applied in determining the right supplier is 'technical capabilities', which might include ...
- A. The supplier's financial ratios, revealing that they are very highly geared
- B. The supplier's ability to produce all required quantities and maintain contingency stocks
- C. The supplier's ability to keep its plant and machinery in a high state of repair and maintenance
- D. The supplier's brand name is highly reputed for being associated with the Ethical Trading Initiative
Answer: B
Explanation:
Technical capability focuses on the capacity to meet specification, volume, and reliability (including contingency). While maintenance is relevant, the clearest indicator among these options is the proven ability to deliver required quantities and hold contingency stock. Financial gearing and reputational associations are separate selection dimensions (financial/ethical).
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - supplier selection criteria (technical capability, capacity, quality, ethical credentials).
NEW QUESTION # 109
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