CIPS Ethical and Responsible Sourcing - L4M4 Exam Practice Test

You have been asked to set some key performance indicators (KPIs) for your local stationery provider and you decide to set the following requirements:
To deliver all orders within a one-hour period
To collect any returns within one hour
Are these KPIs appropriate?

Which of the following is a strategic cost associated with outsourcing cyber-security from an in-house IT function to a specialist supplier?

A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?

When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored.
Which of the following questions would be assessing any of the ESC criteria?
Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
How do you promote equal opportunity for your employees, customers, and suppliers?
What is the annual turnover and profitability of your company?
Does your company have an anti-bribery policy?

Jack Green is using an open tender to source a new component for a product. What must be considered if using an open tender?

What mechanism helps buying organisations achieve a best value outcome in a tender exercise?

What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

As a procurement officer for a large organisation, a supplier approaches you on social media offering to take you out for dinner to discuss a recent open opportunity and mentions a financial reward if you help them win the business. You accept the invite. Was this the right thing to do?

Why is it important to consider factors such as environmental, social, governance, and ethics (ESG) when analysing tenders?
* To ensure adherence to sustainability initiatives
* To improve process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain

What are the risks of outsourcing?
Loss of control of project
Loss of assets
Loss of future business opportunities
Loss of private information

A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

Placing varied importance on different sections of a tender submission is known as what?

A procurement manager has developed some reports in order to analyse total company expenditure on bought- in goods and services from external suppliers. Expenditure information by product category or supplier can achieve which of the following? Select TWO that apply.

Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.