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?
Answer(s): A
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?
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?
Answer(s): D
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 etc2) 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 hear3) audits are great- but they don't ALWAYS uncover issues. Always is the key word in that sentence which makes it incorrect.
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?
Answer(s): C
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.The other options are wrong:1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi- sation is forced to comply with CIPS.2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible3) ISO 14001 is quality management so is irelevent.
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?
Answer(s): B
Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations. 'Preferential Origin' goods have no duties or tariffs.The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.
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