Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?
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?
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?
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors’practices and community health centres. Ramesh has reviewed the different tender approaches and 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?
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.
Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?
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
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steeprise in inflation?
What is the best way to prevent potential issues of conflicts of interest?
Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?
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?
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.
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?
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
What type of relationship should a buyer seek when making strategic sourcing for their business?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
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.
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?
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance. Should the company go ahead with the recommendation?
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?
The gross profit of a company can be calculated by using a simple formula. What is this?
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 make sure 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?
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?
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?
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?
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?
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?
Which of the following is not a type of fraud that procurement professionals should be vigilant for?
Which of the following are signs that modern-day slavery might be taking place within the supply chain? Select THREE.
Which award criteria can be applied when sourcing requirements from external suppliers?
Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?
In which instance would multiple sourcing be the most applicable approach?
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?
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
Other than price, what should a buyer consider when evaluating supplier quotations?
Lead times
Add-on costs
Wastage rates
Past performance
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?
What is the best way to prevent potential issues of conflicts of interest?
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?
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?
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?
Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
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?
Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?
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?
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.
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 should be considered when calculating ratios relating to a supplier's liquidity?
An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
What are the risks of outsourcing?
Loss of control of a project
Loss of assets
Loss of future business opportunities
Loss of private information
Weighted points systems can be applied to evaluate and compare potential suppliers. For which of the following factors would it be appropriate to use this method?
Financial stability
Supplier reliability
Market demand
Negotiation styles