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CIPS L4M4 - Ethical and Responsible Sourcing

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Total 282 questions

Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?

A.

yes- post-tender negotiation may result in a lower price and thus better value for money

B.

yes- all tender processes should include post-tender negotiation

C.

no- this isn't necessary as Damian has selected the most appropriate supplier

D.

no- it would be against the law for Damian to do this

Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?

A.

send out a RFI

B.

send out a RFQ

C.

speak with his current suppliers

D.

conduct an open competition

A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?

A.

Weighted criteria

B.

The supplier location

C.

Framework agreement terms

D.

The bidder's price

Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

A.

data protection

B.

product safety standards

C.

marketplace competition

D.

ethical practice

In which type of market would you be most likely to find a 'perfect competition'?

A.

monopoly

B.

oligopoly

C.

commodity

D.

monopolistic competition

Azram is a facilities category buyer within the UK police force and is managing an overseas sourcing project for police uniform and personal protective equipment. Azram is of the opinion that international sourcing will help deliver much-needed financial savings, which can be utilized in other areas of the UK police force. Azram is aware that exchange rate fluctuations can create risk for his organisation. How can Azram remove this risk?

A.

Evaluate international supplier’s financial accounts

B.

Carry out a competitive tender exercise

C.

Request to use the exchange rate applicable at the time of delivery

D.

Ask suppliers to quote in GBP Sterling

The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?

A.

to state which products can be exported from which countries

B.

to ensure buyers and suppliers pay the correct level of tax on imported and exported goods

C.

to describe the point at which an item is considered delivered

D.

to provide internationally recognized product descriptions

Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?

A.

No, because single sourcing should only be used where there is just one supplier in the market

B.

Yes, because many suppliers tend to increase stock variety and stock proliferation

C.

No, because single sourcing may also be used when a requirement demands expensive set-up costs

D.

Yes, because single sourcing works well within a volatile supply environment

Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?

A.

yes- suppliers should quote in their own currencies so there is no risk to the importing company

B.

yes- when suppliers quote in local currencies you are more likely to get better prices

C.

no- quoting the prices in GBP / £ will provide Khalid with better security against cur-rency fluctuations

D.

no- prices should be quoted in GBP / £ as this will reduce the cost of imports

A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance. Should the company go ahead with the recommendation?

A.

Yes, as it would align with, and help to achieve, sustainability goals

B.

No, ISO standards are too complex for staff and suppliers to understand and follow

C.

No, because ISO standards are only relevant to large organisations

D.

Yes, implementation would guarantee that the company is compliant with all environmental laws