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CIPS L4M8 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Ethics, Responsibility & Compliance | 25% | - Ethical and responsible sourcing application
|
| Application of Procurement Cycle | 25% | - Key stages of procurement cycle in practice
|
| Whole Life Asset & Cost Management | 25% | - Total cost of ownership concept
|
| Sourcing Process & Supplier Management | 25% | - Stages of strategic sourcing
|
CIPS Procurement and Supply in Practice Sample Questions:
Which Incoterm applies here?
The supplier is responsible for delivering the goods to a carrier or to an intermediate agreed place and should ensure that the goods have at least minimal insurance cover until this point. Again, the buyer is responsible for ensuring these goods reach their named destination from here.
- A. FCA - Free Career
- B. CIP - Carriage and Insurance Paid to
- C. EXW - Ex Works
- D. CPT - Carriage Paid To
Correct Answer: B 🗳️
What is PQQ and what does it include?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Pre-qualification questionnaire (PQQ) is often standard forms that buyers send to potential suppli-ers. The purpose is to ensure that these potential suppliers could, if they win the contract, supply the product or service to the standard required. PQQ includes requesting details from the potential suppliers on the following information
1. Company Details
2. Environment policies
3. Trading history
4. Ethical policies
5. Financial information
6. Health and safety policies
7. Quality standards
8. References
9. Insurance.
Explain the difference between bonded and forced labor.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Bonded labour and forced labour are among the five types of modern slavery which is against ethical and responsible sourcing.
Bonded labour also known as debt bondage, this is an individual's promise to provide services through exploitation as repayment, or part of them, of a debt or other obligation whereas forced labour is work that people are forced to do with the heat of punishment if it is not carried out.
Create a list of assets of a company with which you're familiar and divide them into standard and bespoke categorizing.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Name of company: Full power projects
Business: Project management training and consultancy
If an organization is sourcing an asset that is readily available or mass produced then the cost associated with the design and manufacturing will be lower percentage of the total cost than if an organization commissions a bespoke piece of equipment to be designed and manufactured.
The following are a list of assets owned by fullpower projects.
Standard/off the shelf (Mass produced)
Projector from a shop-displayed files and document jackets from market
Desks and furniture
Bespoke/specialist - white board and marker
With extra, e.g. made with company color
Gift/ sovereign (bags and T. shirt) with coup any label, color and design Refer to the question column for response
What Incoterm applies here?
The goods are considered 'delivered' at the point of release from the supplier's premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance - this must be arranged by the buyer. The risk is on the buyer from this point.
a) EXW - Ex Works
b) FCA - Free Career
c) CPT - Carriage Paid To
d) CIP - Carriage and Insurance Paid to
- A. FCA - Free Career
- B. CIP - Carriage and Insurance Paid to
- C. EXW - Ex Works
- D. CPT - Carriage Paid To
Correct Answer: C 🗳️
