CIPS L4M4 Exam Dumps (V11.02): Continue to Check L4M4 Free Dumps (Part 2, Q41-Q80) for Ethical and Responsible Sourcing Exam Preparation

1. A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance.

Which Incoterm has been agreed?

2. A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market.

Which of the following is a benefit of using a full competitive tendering process for this new contract?

3. What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

4. Which of the following would be considered a strategic sourcing activity?

5. Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25.

is this the correct thing to do?

6. The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:

Current Assets: Stock $200; Debtors $60; Cash $40; Total $300

Short Term Liabilities: Bank overdraft $150

Which calculation will the procurement manager use to find out the current ratio?

7. Many organisations prefer a multi-sourcing approach because of the advantages it provides.

Which of the following might be an advantage of multi-sourcing?

8. What are the risks of outsourcing?

1. Loss of control of project

2. Loss of assets

3. Loss of future business opportunities

4. Loss of private information

9. When looking at credit scores, a supplier may be classified as a high risk for reasons that are notlinked to poor credit.

Which of the following could these be? Select TWO

10. The use of Incoterms will eliminate all risks involved in international trade transactions.

Is this statement true?

11. Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

12. Incoterms are designed to be understood and interpreted on a worldwide basis.

What is the interpretation for FOB (Free on Board)?

13. Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X.

What should Tracey do?

14. It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.

15. The gross profit of a company can be calculated by using a simple formula.

What is this?

16. Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

17. Which of the following are primary sources of data? Select TWO.

18. A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asks Questions relating to how they will deliver the service and gives a deadline for bids to be submitted.

Which document have the suppliers ben sent?

19. Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business.

What should Greg do about his concerns?

20. 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?

21. Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio.

What would this suggest?

22. Azram is a facilities category buyer within the UK police force and is managing an overseas sourcing

project for police uniform and personal protective equipment. Azram is of the opinion that international sourcing will help deliver much-needed financial savings, which can be utilized in other areas of the UK police force. Azram is aware that exchange rate fluctuations can create risk for his organisation.

How can Azram remove this risk?

23. In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony.

Which negotiation tactic is the supplier using?

24. A company's balance sheet will show you which of the following?

25. Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector.

Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

26. Which of the following is an example of intracompany trading? Select TWO

27. If a company is described as 'liquid' what does this mean?

28. A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally.

Which of the following factors is likely to justify the decision to make the requirements internally?

29. Incoterms are divided into four main groups to follow the movement of goods covering the exporter’s premises, export and import points, and cost and risk.

Which letters represent the four groups of Incoterms?

30. Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.

Which type of sourcing arrangement has Ramesh began?

31. 'Phishing' is an activity that can occur when an employee within an organisation receives an email that appears to be from a genuine supplier but is false. These types of emails expose the organisation to the activities of expert cyber criminals.

Which type of crime category does this activity fall within?

32. Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment.

Which of the following should Robert look at?

33. Other than price, what should a buyer consider when evaluating supplier quotations?

1. Lead times

2. Add-on costs

3. Wastage rates

4. Past performance

34. Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

35. Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.

What relationship style would be best suited?

36. The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements.

Was this an appropriate approach to use in the circumstances?

37. Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these.

Which of the following items would be C category items?

38. Which of the following factors are typically considered when assessing a supplier's financial capacity?

39. In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?

40. A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year’s purchase orders and has been asked to confirm the month of order placement.

The buyer has found three trends:

In January and April, the supplier's local currency is stronger

November typically has the lowest demand

May typically has the highest demand

Which month should the buyer plan to place the purchase order?