Other than price, what should a buyer consider when evaluating supplier quotations?
Lead times
Add-on costs
Wastage rates
Past performance
Correct Answer: A
In addition to price, factors like lead times, add-on costs, and past performance are important to ensure the supplier meets the buyer’s requirements sustainably and reliably. These criteria align with ethical sourcing by promoting value and accountability beyond just cost considerations.
A multi-national company is seeking to negotiate an agreement with a global supplier for the delivery of fresh produce.
At which stage of the procurement process should the buyer consider Incoterms?
Correct Answer: A
Incoterms define the allocation of costs, risks, and responsibilities between buyer and seller in international trade. They must be agreed before the contract is finalised, as they form a fundamental part of the contractual terms. Considering Incoterms early ensures clarity on delivery obligations, customs responsibilities, insurance, and transport costs. Selecting Incoterms after contract agreement or at order placement would create ambiguity and risk disputes. Ethical and responsible sourcing requires clear contractual definitions to prevent misunderstandings, ensure compliance, and fairly allocate risk in global supply chains.
Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?
Correct Answer: B
A credit rating is one of many tools used to assess a supplier’s financial health. Responsible sourcing requires a comprehensive assessment of suppliers, considering multiple factors, to ensure a balanced and ethical approach to supplier selection.
A chief procurement officer (CPO) reviews a tender process and recommendation before making the final submission to the board of directors for approval. The CPO notices that the evaluation team assessed technical and financial capacity but did not conduct an assessment and due diligence on the supplier’s environmental, social, governance, anti-bribery, and corruption practices and processes. The CPO has decided to forward the report to the board for approval and seek reassurance from the supplier at a later date once the contract has been signed. Was the CPO’s decision the correct one?
Correct Answer: B
Ethical and responsible sourcing requires that environmental, social, governance, anti-bribery and corruption (ESG/ABC) considerations are assessed before contract award, not after. Failure to conduct due diligence exposes the buying organisation to reputational damage, legal sanctions, financial losses, and supply chain disruption. Seeking reassurance post-contract removes leverage and weakens governance controls. CIPS guidance stresses that supplier evaluation must be holistic, covering technical, financial, and ethical compliance to ensure risks are identified and mitigated early. Strategic contracts, in particular, demand robust due diligence to protect organisational integrity and stakeholder trust.
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?
Correct Answer: A
Weighted criteria allow the buyer to evaluate multiple factors, not just price, to make a fair and balanced decision. This approach ensures responsible sourcing by considering quality, sustainability, and other relevant factors alongside cost, which aligns with public procurement ethics and standards.
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