Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
Correct Answer: D,E
Price and Quality are the two considerations when marking a competitive tender. Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.
L4M4 Exam Question 57
When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?
Correct Answer: A
Compliance with fair trade standards demonstrates the supplier's commitment to social responsibility, including fair wages and ethical working conditions. This aligns with responsible sourcing practices, ensuring that suppliers maintain ethical labor standards, as advocated in the principles of ethical sourcing.
L4M4 Exam Question 58
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?
Correct Answer: D
The most effective way to demonstrate zero tolerance is by embedding a comprehensive anti-bribery framework: clear policies, mandatory staff and supplier training, reporting channels, and monitoring. Simply requesting suppliers' policies or avoiding known offenders is reactive, not proactive. Requiring suppliers to read policies without internal enforcement lacks substance. CIPS highlights that robust governance structures, supported by recognised frameworks such as the UK Bribery Act or FCPA, reinforce organisational credibility, protect reputation, and ensure compliance. This builds trust across supply chains and ensures ethical standards are maintained. Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethics, anti-bribery and corruption frameworks.
L4M4 Exam Question 59
A buyer for a large manufacturing organisation is assessing a sole-supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole-supplier proposal?
Correct Answer: A
Where price leverage is limited, buyers should seek value-adds: extended warranties, service levels, training, spares, delivery schedules, sustainability commitments, or risk-sharing. This aligns with total value and ethical outcomes beyond headline price. Reference: CIPS L4M4 Study Guide (v2): LO "Application" - value analysis/negotiation with limited competition; non-price value levers and responsible outcomes.
L4M4 Exam Question 60
A 'carnet' provides evidence of the origin of goods shipped in an international trade transaction. Is this statement correct?
Correct Answer: A
A carnet (specifically an ATA Carnet) is a customs document that allows for the temporary duty-free and tax- free movement of goods across international borders. It is commonly used for exhibitions, fairs, and professional equipment but is not proof of origin. Proof of origin is instead provided by a certificate of origin or other trade documents. It is also not an insurance policy. Responsible sourcing requires buyers to distinguish between documents used for temporary movement (carnet), origin evidence (certificate of origin), and risk transfer (insurance). Correct understanding avoids compliance failures, delays, or unexpected costs in international trade. Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - international sourcing documentation.
