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Free L4M4 Exam Braindumps (page: 12)

Page 12 of 31
PDF with 120 Questions

A procurement manager who works in the public sector has received 8 submissions to a tender op- port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'.
What should be the procurement manager's course of action?

  1. automatically dismiss the low bid
  2. award the contract to the low bid as this represents better value for money
  3. investigate the low bid
  4. award the bid a 0 for price

Answer(s): C

Explanation:

You should investigate automatically low tenders by clarifying the bid with the supplier. It could be they have misunderstood the requirement. Or the bid could be genuine and they can really provide best value for money. But without enquiring, you just don't know.



Zeb is a Procurement Manager at Zig Zag Zips manufacturing. The organisation has a complex supply chain and works with 46 different suppliers, many of these international.
Which of the follow-ing would be the most useful for Zeb to address issues of Modern Slavery?

  1. carry out regular due diligence checks on the supply base
  2. ensure all 46 suppliers publish an Anti Slavery Statement in line with the Modern Slavery Act
  3. work with less suppliers to reduce the risk of slavery entering the supply chain
  4. ask all suppliers to get Fair Trade accredited

Answer(s): A

Explanation:

Carry out due diligence is the correct answer. The other answers are incorrect:
- ensure all 46 suppliers publish an Anti Slavery Statement in line with the Modern Slavery Act is wrong because the question states that some suppliers are international. The legislation is UK, meaning international suppliers don't have to do the statement. It also only applies to companies with a turnover of £36m, and some of Zeb's suppliers may be smaller than this.
- work with less suppliers to reduce the risk of slavery entering the supply chain is a silly answer be- cause Zeb probably needs all of his suppliers. There's probably a reason he uses that many.
- ask all suppliers to get Fair Trade accredited is also a silly answer. Fair Trade only exists in some industries such as cocoa and bananas. Zig Zag Zips is in manufacturing so it's probably not going to be able to fairtrade accredit some of the stuff it buys.



Which of the following Incoterms has the lowest risk for the supplier?

  1. ex works
  2. delivered at terminal
  3. free on board
  4. delivered duty paid

Answer(s): A

Explanation:

Ex-Works has the lowest risk to the supplier- in Exworks the buyer collects the items directly from the supplier - so they have all the issues and risks of transporting it back home. There are many question on Incoterms CIPS can ask. But as there's such a huge bank of questions it's really hit or miss if you'll get one of those question. Two students sitting the exam at the same time in the same study centre can get different question sets. One person can get 3 Incoterm questions and the other gets 0.

I would learn the major ones- the ones at the ends of the table in particular because these are the ones question are likely to be about. Ex works / Free carrier and Delivered at Place Unloaded/ De- livered Duty Paid in particular.

I like this graph as I'm a visual person. I think it makes it easier to understand than the study guide:
Shipping Incoterms: the Complete Guide - Guided Imports



Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?

  1. No- audits will only reveal financial issues not ethical ones
  2. No- Ali should simply ask the supplier's about their ethical practices
  3. Yes- audits always uncover ethical violations such as modern day slavery
  4. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations

Answer(s): D

Explanation:

The correct answer is 'yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations'. The other options are incorrect:
1) you can do many types of audit- financial, ethical, Health and Safety etc
2) asking a supplier about their ethical practices isn't likely going to get you accurate information. They'll just tell you what they think you want to hear
3) audits are great- but they don't ALWAYS uncover issues. Always is the key word in that sentence which makes it incorrect.



Page 12 of 31



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Kgalaletso commented on September 17, 2024
This is a beautiful tool thank you for making ot available
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upvote