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CIPS L4M8 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Supplier Relationships and Performance | - Performance improvement
|
| Procurement Process and Sourcing | - Sourcing strategies
|
| Procurement and Supply Context | - External business environment
|
| Procurement Technology and Innovation | - Innovation in supply management
|
| Risk, Ethics and Sustainability | - Ethical and sustainable procurement
|
| Contracting and Legal Principles | - Contract formation
|
CIPS Procurement and Supply in Practice Sample Questions:
Why is it important to have adequate procedures in place within an organization in relation to bribery?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Bribery is the act of giving someone something of value to persuade them to do something that benefits you.
Ethical and responsible sourcing requires conducting due diligence on bribery before going into contractual relationship because failure to this might lead to loss in reputation.
In other for an organization to defend itself against a case of suspected bribery, the United Kingdom bribery Act introduced in 2010 suggests that organizations should have adequate procedures' in place.
The following are six procedures an organization should have in place to be able to defend itself against bribery
1) Proportionate procedure
2) Top level commitment
3) risk assessment
4) due diligence
5) communication
6) monitoring and reviewing
What matrix helps to define how to manage stakeholders?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Stakeholders are individuals or organizations who are directly affected by a decision for example, community, shareholders, employees, suppliers, distributors, customers etc. stakeholders can be internal (employers, staffs), connected (such as suppliers, shareholders, financers and customers) external (Government, pressure groups, and community).
The matrix that helps define how to manage stakeholders is mendelow's stakeholders manage-ment matrix.
This matrix is based on the theory that the level of management stakeholders require depends on the level of their power and interest within the project or organization The matrix groups stakeholders in to four quadrants according to their power and interest and ad-vice how to manage them.
1) Low power - Low interest (minimum effort)
2) Low power - High interest (keep inform)
3) High power - Low interest (keep satisfied)
4) High power - high interest (manage closely)
* Refer to the question column for response
Which four procurement cycle stages happen after the award of the contract?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
The procurement cycle is the heart of purchasing, sourcing and supplying and should be followed in day-to- day practice in the industry. The procurement cycle has thirteen stages. Contract award is stage 9, and the stages after the contract award are; Stage 10: ware house, logistic and receipt Stage 11: Contract performance review and continuous improvement Stage 12: SRM/SCM and contract management Stage 13: Asset management, lessons learned, end of life.
Which Incoterm applies here?
The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination and must also cover the cost of this. The supplier bears all risks until the goods are delivered to the buyer at their named place.
- A. CIF - Cost Insurance and Freight
- B. DAP - Cost and Freight
- C. FOB - Free On Board
- D. AS - Free Alongside Ship
Correct Answer: B 🗳️
Describe one implied term and one expressed term from a contract with which you are familiar.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Terms are the right and duties agreed between parties which are then documented in contract. Terms can be implied or expressed.
Implied terms are always present in a contract and are set by national laws; implied terms do not have to be written or verbally agreed : they always exist, for example sales of Gods Act, good being fit for purpose, Negligence, confidence, whereas expressed terms are negotiated and agreed rather than being automatically included, express terms are agreed between, parties negotiating the contract. For example; payment terms, specification, delivery detail and quantities
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