A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?
Why is it important to consider factors such as environmental, social, governance and ethics when analysing tender proposals from the market?
To ensure adherence to sustainability initiatives
To improve the process workflow
To perform supplier spend and monitoring
To identify potential risks within the supply chain
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?
When might a company send a Request for Information (RFI) to a supplier instead of a Request for Quotation (RFQ)? Select TWO that apply:
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?
In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?
A buyer might opt to do an 'Invitation to Tender' (ITT) rather than a 'Request for Quotation' (RFQ) process because …
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.
The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?
Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits. Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO
A procurement manager analyses total company expenditure on goods and services. What can expenditure by product category or supplier achieve? (Select TWO)
Which of the following are key areas of regulations governing responsible procurement and supply?
Incoterms are divided into four main groups to follow movement of goods covering exporter’s premises, export/import points, and cost/risk. Which letters represent the groups?
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?
A buyer is procuring metals. The following trends are observed:
January and April: supplier’s local currency is strong
November: demand is lowest
May: demand is highest
Which month should the buyer place the order?
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?
What are some of the benefits of conducting unscheduled supplier audits? Select TWO that apply.
“Phishing” occurs when an employee receives a false email that appears genuine, exposing the organisation to cybercrime. Which crime category does this fall under?
What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?
Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.
For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?
As a procurement officer for a large organisation, a supplier approaches you on social media offering to take you out for dinner to discuss a recent open opportunity and mentions a financial reward if you help them win the business. You accept the invite. Was this the right thing to do?
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?
In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?
Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?
A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of 0.6. What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?
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?
A 'carnet' provides evidence of the origin of goods shipped in an international trade transaction. Is this statement correct?
A procurement manager has developed some reports in order to analyse total company expenditure on bought-in goods and services from external suppliers. Expenditure information by product category or supplier can achieve which of the following? Select TWO that apply.
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?
Which of the following are procurement procedures permissible under EU Public Procurement rules? Select TWO that apply.
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?
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?
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?
Which of the following would you expect to find in an Invitation to Tender? Select THREE
When working closely with a supplier, waste can be reduced which can lead to improved business functions and cost savings. Which of the following are wastes that can be removed from the supply chain? Select THREE.
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.
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
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?
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?
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?
During the quality assurance of a supplier, Margaret is looking for an international standard that shows the supplier's commitment to sustainable procurement. What document should the supplier provide to show this?
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?
Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.
In which type of market would you be most likely to find a 'perfect competition'?
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?
A buyer has been working with managers on a tender and is now assessing supplier proposals. Is it good practice for the procurement buyer to make sourcing recommendations?
Which of the following should form part of the initial evaluation process for non-domestic vendor supply proposals?
A buyer is assessing a supplier’s proposal in terms of any added value offered. Which of the following are examples of added value?
The supplier has submitted the lowest price compared to competitors
The supplier is offering solutions to reduce costs in the supply chain
The supplier is committed to reducing plastic and waste in operations
The supplier is personally known by the Operations Director
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?
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?
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?
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
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?
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
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 ...
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?
Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?
Jack Green is using an open tender to source a new component for a product. What must be considered if using an open tender?
The bill of lading is one of the main documents in sea freight. Which of the following statements represent its uses? (Select TWO)
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?
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE
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
Which is an example of a criterion for supplier selection during a tender for a hospital build to demonstrate the people element of the 'triple bottom line'?
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
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.