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CIPS L4M4 Exam Syllabus Topics:

Topic
Details

Topic 1

• 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 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 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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CIPS Ethical and Responsible Sourcing Sample Questions (Q47-Q52):

NEW QUESTION # 47
Which is an example of a criterion for supplier selection during a tender for a hospital build to demonstrate the people element of the 'triple bottom line'?

• A. Specifications are designed with appropriately certified materials
• B. Demonstrated commitment to a labour industry code of conduct
• C. Project plan is designed to use reverse logistics
• D. Building design is thermal efficient to meet carbon trust targets

Answer: B

Explanation:
The 'people' element of the triple bottom line focuses on social responsibility, including fair labor practices and community engagement. A supplier's demonstrated commitment to a labor industry code of conduct indicates adherence to ethical labor standards, such as fair wages, safe working conditions, and respect for workers' rights, aligning with the social sustainability goals of the project.
Exact Extract from Study Guide:
"The triple bottom line - profit, people and planet
* Adopt sustainable practices, standards and specifications in the supply chain
* Consider the social impact of the organisation's behaviours
* Design procurement processes to deliver social outcomes as well as, or as an alternative to, normal economic measures of value"

 

NEW QUESTION # 48
The sourcing process is considered to include the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include ...

• A. Engaging with suppliers to ensure that they are achieving the KPIs set in the contract
• B. Reminding the design manager to approve the drawings which will accompany the invitation to tender documents
• C. Processing the requisitions to facilitate call-offs against a newly created framework contract
• D. Comparing the supplier's delivery note with the purchase order to confirm the specification

Answer: B

Explanation:
In the sourcing process, obtaining necessary approvals (such as drawings for the invitation to tender) is critical to ensure clarity and readiness before engaging with suppliers. Responsible sourcing emphasizes structured preparation, ensuring compliance and accuracy in supplier expectations.

 

NEW QUESTION # 49
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

• A. quantity
• B. ethics
• C. time
• D. quality
• E. environment

Answer: B,E

Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.

 

NEW QUESTION # 50
A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. There are many factors that need to be considered before arriving at such a decision. Which of the following factors is likely to justify the decision to make the requirements internally?

• A. The availability of in-house competencies and capacity to carry out the production
• B. External suppliers are likely to be overcharging
• C. The other suppliers are using older technology
• D. External sourcing involves cumbersome tendering procedures

Answer: A

Explanation:
The decision to make a product internally rather than sourcing it externally is influenced by several factors.
One of the primary considerations is the availability of in-house competencies and capacity. If an organisation possesses the necessary skills, technology, and resources to produce the required goods or services efficiently, it may opt for internal production to maintain control over quality, reduce costs, and protect proprietary information.
Exact Extract from Study Guide:
"Make or buy decisions take into account: product/service is core, the organisation's capacity to make, current market (cost saving with economy of scales and/or logistics), amount of competition."

 

NEW QUESTION # 51
In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

• A. Return on Equity
• B. Gross Profit Margin
• C. Acid Test
• D. Gearing Ratio

Answer: A

Explanation:
"Meet current liabilities" is a posh way of saying "can you pay your bills". You're therefore looking for a liquidity ratio- a ratio that looks at assets vs liabilities (i.e. money in the bank vs money owed out). The Acid Test is a liquidity ratio. It's sometimes called the 'quick ratio'. Both terms come up on the exam. The other options are financial ratios but aren't for liquidity.

 

NEW QUESTION # 52
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