A buyer might opt to do an Invitation to Tender (ITT) rather than a Request for Quotation (RFQ) because …

Economic indices track a market's stability and health. One of these indices is the Consumer Price Index (CPI). Which of the following are aspects of the Consumer Price Index? Select TWO that apply.

The balance sheet (Statement of Financial Position) is one of the financial statements used in providing important information required in determining the supplier's financial stability. The balance sheet contains information on such items as...

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?

What is the best way to prevent potential issues of conflicts of interest?

FTSE100 and Sensex are examples of what?

A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?

Fraudulent activity

Bribery

Modern slavery

Breach of confidentiality

The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40). Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?

Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

Supplier selection focuses on which of the following?

Supplier suitability and capability of meeting requirements

Which pre-qualified supplier represents the best outcome

Financial stability and quality culture of the supplier

Most time-efficient tender from a supplier

If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

Sourcing aims to achieve the best value for money by taking into account several factors. Freddy issourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?

Which of the following would you expect to find in an Invitation to Tender? Select THREE

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

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

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

Which of the following should form part of the initial evaluation process for non-domestic vendor proposals?

What type of relationship should a buyer seek when making strategic sourcing for their business?

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?

Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?

An emphasis on long-term supplier relationships where possible

Maintaining service levels within value and cost parameters

All dealings between buyers and suppliers are kept confidential

A competitive tendering process is usually encouraged

What might a buyer encounter if the supplier's government has introduced a protectionist measure?

Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

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?

Who was responsible for introducing the concept of Incoterms?

Bribery is considered an unethical business practice. What constitutes a bribe?

Which of the following are secondary sources of market and supplier data? (Select TWO)

Added value can be objectively defined. Is this sentence TRUE?

When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?

Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers. Which of the following is Luke now likely to know about the marketplace? Select THREE

ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?

Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.

It is important that buyers take an approach that is reasonable and fair when selecting suppliers to work with. Which of the following is a voluntary document which can help procurement professionals treat suppliers respectfully?

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?

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

What are some of the benefits of conducting unscheduled supplier audits? Select TWO that apply.

Which of the following is not a indices that measures economic data?

Which of the following is considered as part of ESG?

Tendering is a more formal and regimented process than sending out requests for quotations. Which of the following are services that are often put out to tender? Select THREE.

A buyer of bakery and cereal products has tracked wheat prices. Severe weather has reduced wheat supply globally, but demand remains high. How can this research help the buyer?

One approach to managing supply risk is by having multiple suppliers of a given product or category of requirements. This approach has both advantages and disadvantages. Which of the following conditions would be a reason for multiple sourcing arrangements?

When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making. The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.

Amnesty International, Oxfam and CIPS are examples of what type of organisation?

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?

Phishing is a type of fraud that is commonly associated with which industry?

A buyer might opt to do an 'Invitation to Tender' (ITT) rather than a 'Request for Quotation' (RFQ) process because …

Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?

Which of the following payment mechanisms is most beneficial to the supplier?

Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?

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

Ramesh is an IT category manager within the UK’s NHS and is responsible for the procurement of a new high-value network system. Ramesh has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

Azram, a facilities category buyer for UK police, is sourcing uniforms internationally. Concerned about exchange rate risk, how can Azram remove this risk?

A company has a requirement for an item that has been identified as strategic on the positioning model. The company needs to invite competitive tenders and ensure the selected supplier of this item is in a good financial position. What should the company ask the suppliers to send to show that their current assets cover their current liabilities?

Which of the following should form part of the initial evaluation process for non-domestic vendor supply proposals?

Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract. What type of tender should he use?

The sourcing process is considered to include the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include ...

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

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

Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?

Which of the following incoterms has the lowest risk to the buyer?

Sourcing is part of the procurement cycle and is likely to be used in conjunction with which activities? (Select TWO)

When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation. What is meant by 'functional fit'?

The bill of lading is one of the main documents associated with sea freight within international sourcing. Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

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?

Chantelle is a procurement apprentice working in the public sector for an education organisation. As a result of studying towards the CIPS qualification, Chantelle has become aware of the importance of incorporating sustainability and environmental award criteria into tender exercises and has informed her manager of this. For the purchase of IT supplies, which requirement could be evaluated within the sustainability and environmental award criterion?

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?

Which of the following are key areas of regulations that govern organisations in responsible procurement and supply?

When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored. Which of the following questions would be assessing any of the ESC criteria?

Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?

How do you promote equal opportunity for your employees, customers, and suppliers?

What is the annual turnover and profitability of your company?

Does your company have an anti-bribery policy?

Which of the following would you use to work out a company's gearing ratio? Select TWO.

0current liabilities

Which of the following are key areas of regulations governing responsible procurement and supply?

Jack Green is planning to use competitive tendering to source a new component for a new product that the customer research department has been developing for the domestic market. Jack is intending to use an open tender process. Which of the following aspects must Jack consider if an open tender procedure is to be used?

What mechanism helps buying organisations achieve a best value outcome in a tender exercise?

A procurement manager analyses total company expenditure on goods and services. What can expenditure by product category or supplier achieve? (Select TWO)

The Universal Declaration of Human Rights means that member states cannot restrict their citizens of any of the rights listed. Which of the following rights may apply to employees who make a complaint about unfair pay and conditions that are not comparable to others in the company?

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?

A buyer is considering trading with a new supplier who is based in a country they have not traded with before. The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.

Which of the following is a measure of liquidity?

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?

Which of the following can be undertaken by the buyer in relation to the governance of a supplier’s ethical and sustainable behaviours?

Review the insurance clauses in the contract

Check that the supplier’s internal policies are up to date

Check the supplier’s conflict of interest register for their contract

Review the non-disclosure agreement for their contract

Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?

When would a procurement professional use the Pareto principle?

A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?