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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing
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CIPS Ethical and Responsible Sourcing Sample Questions:
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
- A. Yes- audits always uncover ethical violations such as modern day slavery
- B. No- Ali should simply ask the supplier's about their ethical practices
- C. No- audits will only reveal financial issues not ethical ones
- D. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations
Correct Answer: D 🗳️
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A buyer might opt to do an Invitation to Tender (ITT) rather than a Request for Quotation (RFQ) because ...
- A. The supplier market is an oligopoly where a few large suppliers dominate the market
- B. Time is of the essence and decisions need to be made quickly without additional stakeholder involvement
- C. The contract will be low value and there are many suppliers, therefore a simpler approach is required
- D. The nature of the goods or services being purchased is complex and high value
Correct Answer: D 🗳️
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A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?
- A. No - quotations provide samples too
- B. Yes- price is the only factor considered
- C. Yes- this ensures the cheapest supplier is appointed
- D. No - specifications, technical details and quantities can also be provided
Correct Answer: D 🗳️
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AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?
- A. Regardless of value and importance, vehicle livery should be treated the same as low-value categories
- B. There are several suppliers, so only moderate time and effort should be spent using a transactional approach
- C. Strategic high-value expenditure categories should be prioritised, requiring a closer and more collaborative supplier relationship
- D. Vehicle livery is high value but needs little attention; an arm's length approach is required
Correct Answer: C 🗳️
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A public sector buyer ran a tender with eight bidders, all meeting minimum standards. How is the award decision made?
- A. Weighted criteria
- B. Supplier location
- C. The bidder's price
- D. Framework agreement terms
Correct Answer: A 🗳️
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