CIPS Updated L4M4 Exam Questions and Answers by dana

Explanation

According to p.75 "a RFQ attempts to assess which supplier can achieve the Five Rights of Procurement". Although price is the only factor considered when using a RFQ- it's important to consider this price in detail; can the supplier deliver the right QUALITY of product for this price?, can they deliver the item WHEN we need it for this price? etc.

The answer is not 'who will deliver it the cheapest' because Jamilla might not pick the cheapest sup-plier. If the cheapest supplier has inferior quality paper, or can only make deliveries every other Tuesday then Jamilla may not select them.

Unscheduled audits can provide an unbiased view of supplier practices and help identify compliance issues that might be hidden during scheduled audits. This approach supports responsible sourcing by ensuring accurate assessments of ethical and quality standards.

Restricted tendering involves filtering suppliers through a prequalification stage and then evaluating proposals. The selection focuses on ensuring suppliers have adequate production capacity and financial stability to deliver on requirements. These are critical to continuity, quality, and risk management. Decommissioning costs are not typically part of supplier selection, and total life cost is an award criterion considered later in evaluation. By checking production capacity and financial stability, buyers mitigate risks of underperformance or financial collapse. This approach aligns with responsible sourcing, where due diligence ensures suppliers can sustainably meet obligations.

Internal production is often justified when a company has the necessary competencies and capacity. This approach aligns with responsible sourcing by leveraging internal capabilities for better control over quality, cost, and compliance with ethical and environmental standards.