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[General] New L4M4 Test Online | Reliable L4M4: Ethical and Responsible Sourcing

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【General】 New L4M4 Test Online | Reliable L4M4: Ethical and Responsible Sourcing

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CIPS L4M4 Exam Syllabus Topics:
TopicDetails
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.
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 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 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 (Q106-Q111):NEW QUESTION # 106
When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO
  • A. The organisation is new
  • B. The organisation has lots of fixed assets
  • C. The organisation has no loans or credit cards
  • D. The organisation does not employ many people
Answer: B,C
Explanation:
New organisations or those with no loans/ credit cards may have low credit scores. This is simply because they do not have enough financial history to make their scores good. That means banks au-tomatically class them as higher risk, because they simply don't know that they're trustworthy yet.

NEW QUESTION # 107
In which instance would multiple sourcing be the most applicable approach?
  • A. Sourcing a specialised, unique component where the supplier's knowledge is key
  • B. Sourcing for the provision of a service, where close relationship management is required
  • C. Sourcing for high-cost, strategically important components
  • D. Sourcing for components required at short notice
Answer: D
Explanation:
Multiple sourcing reduces dependency risks and provides flexibility in urgent supply situations. For components needed at short notice, having multiple suppliers ensures continuity and responsiveness.
Strategic, high-value, or unique components (B, C) often require single or closer sourcing to ensure collaboration and expertise. Service provision (A) typically benefits from relationship-based sourcing rather than multiple arrangements. Responsible sourcing stresses that multiple sourcing is a risk management tool, best applied where speed, availability, and resilience are essential.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies (single vs multiple sourcing).

NEW QUESTION # 108
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.
  • A. Procedures on intra-company trading
  • B. The company's criteria for make or buy decisions
  • C. The company's code of ethics
  • D. The company's employee working conditions
  • E. The company's policy on carbon emissions
  • F. The financial stability of the company
Answer: C,D,E
Explanation:
Employee working conditions, a code of ethics, and a carbon emissions policy are all indicative of a supplier's commitment to ESG standards. Assessing these factors aligns with responsible sourcing practices, which prioritize sustainability and ethical considerations.

NEW QUESTION # 109
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.
What relationship style would be best suited?
  • A. non-critical
  • B. adversarial
  • C. collaborative
  • D. transactional
Answer: C
Explanation:
When single sourcing, you should aim to have a collaborative relationship with the supplier. They're the only ones who provide you with glass, which is a vital part of windows. So you need to make sure you have a good relationship with them and work with them to overcome any issues such as supply chain disruptions. If not- you've got no windows to sell!

NEW QUESTION # 110
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- all tender processes should include post-tender negotiation
  • B. no- it would be against the law for Damian to do this
  • C. no- this isn't necessary as Damian has selected the most appropriate supplier
  • D. yes- post-tender negotiation may result in a lower price and thus better value for money
Answer: B
Explanation:
Damian works in the Public Sector- it is against the law for the public sector to conduct 'post tender negotiation' after a contract has been awarded. This is because it's not transparent and equal opportunities, which are founding principles of public sector procurement.
Private sector can do whatever they want. They can do post-tender negotiations.
NOTE: this is currently the rules as per Public Contract Regulations 2015. These are being superseded in October by new legislation. The study guide doesn't mention this, but it's happening. At the time of writing (January 2023) we don't have the full details about what the new rules are but I doubt they will change on this particular topic. You can find out more about the changes to Public Sector Procurement here: Transforming Public Procurement - GOV.UK (www.gov.uk)

NEW QUESTION # 111
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