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CIPS Ethical and Responsible Sourcing Sample Questions (Q71-Q76):

NEW QUESTION # 71
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

A. yes- because a low rating would have a negative impact on the company's reputation
B. yes- because a low rating would indicate the supplier is financially unstable
C. no- because a low rating would not affect the quality of the products supplied
D. no- because a low credit rating would have a negative impact on the supply chain

Answer: B

Explanation:
The correct answer is 'yes- because a low credit rating would indicate the supplier is financially un-stable'.
The two options beginning with no should automatically be discounted. The other option is incor-rect because credit ratings are private and would therefore not affect reputation.

NEW QUESTION # 72
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

A. contract award
B. asset management
C. supplier selection
D. develop strategy

Answer: C

Explanation:
At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk). At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need.
At contract award and asset management it's too late.
CIPS procurement cycle - Procurement Supply Cycle | CIPS

NEW QUESTION # 73
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?

A. it is hard to be objective
B. it is easy to manipulate
C. it is time-consuming to create
D. it allows transparency

Answer: D

Explanation:
Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.

NEW QUESTION # 74
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE

A. cost plus pricing
B. bulk discount
C. sustainability
D. innovation
E. on time in full deliveries

Answer: C,D,E

Explanation:
The correct answers are innovation, on time in full deliveries and sustainability.
The other options are pricing mechanisms rather than 'added value'. Added Value is giving the buyer something extra that's not necessarily financial. It can be as simple as delivering orders quicker than expected, or having a dedicated customer service phone line. Something that makes their lives a little easier.

NEW QUESTION # 75
A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...

A. The nature of the goods or services being purchased is complex and high value
B. The supplier market is an oligopoly where there are a few large suppliers dominating the market
C. The contract will be low value and there are many suppliers, so a simpler approach is required
D. Time is of the essence, and decisions need to be made quickly without additional stakeholder involvement

Answer: A

Explanation:
An Invitation to Tender (ITT) is typically used for complex, high-value procurements where the quality and specific features of the goods or services are of paramount importance. This approach ensures that ethical and responsible sourcing criteria are met, aligning with best practices in procuring specialised goods or services.

NEW QUESTION # 76
......

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Pass Guaranteed Quiz L4M4 - Ethical and Responsible Sourcing–Trustable Reliable Test Experience

2025 Realistic L4M4 Reliable Test Experience - Latest Ethical and Responsible Sourcing Test Practice

CIPS Ethical and Responsible Sourcing Sample Questions (Q71-Q76):

L4M4: Ethical and Responsible Sourcing dumps & PassGuide L4M4 exam

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