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CIPS L4M4 Exam Syllabus Topics:

Topic
Details

Topic 1

Understand the key processes that can be applied to the analysis of potential external suppliers:

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 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 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 (Q130-Q135):

NEW QUESTION # 130
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. Ask suppliers to quote in GBP Sterling
B. Request to use the exchange rate applicable at the time of delivery
C. Carry out a competitive tender exercise
D. Evaluate international supplier's financial accounts

Answer: A

Explanation:
Requesting suppliers to quote in GBP Sterling removes exchange rate risk by fixing the cost in the buyer's local currency. This strategy aligns with responsible sourcing practices by providing cost stability and protecting the procurement budget from currency fluctuations.

NEW QUESTION # 131
Which of the following payment mechanisms is most beneficial to the buyer?

A. term / time draft
B. cash in advance
C. sight draft
D. open/ credit account

Answer: D

Explanation:
Open account (aka credit account) is most beneficial to the buyer. The supplier delivers the goods then the buyer pays.
Cash in advance is most beneficial to the supplier. The buyer pays for the item before receiving it.
This is a known exam topic.

NEW QUESTION # 132
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. transactional
D. collaborative

Answer: D

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 # 133
When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?

A. yes- the public sector should advertise through the Freedom of Information Act
B. no- buyers in the public sector do not source strategic items
C. no- buyers can approach known contractors
D. yes- the public sector should advertise the opportunity as a call for competition

Answer: D

Explanation:
The correct answer is 'yes- the public sector should advertise as a call for competition'. They do this in the Official Journal of the European Union (OJEU). Public Sector has to be transparent about everything and treat all suppliers equally. So they can't just approach the ones they like.
In the study guide it says OIEU and this is a typo. It's OJEU.
What is The OJEU in 2 minutes or less (trackerintelligence.com)

NEW QUESTION # 134
A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance. Which Incoterm has been agreed?

A. FCA - Free Carrier
B. CIP - Carriage and Insurance Paid
C. EXW - Ex Works
D. FOB - Free on Board

Answer: C

Explanation:
Under the EXW (Ex Works) Incoterm, the buyer assumes responsibility for transportation and export clearance from the seller's premises. This term aligns with cost-saving measures and the buyer's internal capabilities for logistics, supporting efficient and responsible sourcing.

NEW QUESTION # 135
......

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