Responsible Procurement Quiz

A company wants to implement responsible procurement practices. Which of the following would be the best application of this concept?

• Selecting suppliers solely based on the lowest price

• Choosing suppliers based on environmental and ethical criteria alongside cost

• Ignoring supplier labor practices to meet deadlines

• Using a single supplier to reduce complexity

A manufacturing firm is revising its CSR strategy. Which of the following actions demonstrates CSR in procurement?

• Reducing supplier payments to cut costs

• Sourcing raw materials from companies that ensure fair wages and safe working conditions

• Prioritizing suppliers who provide the fastest delivery times

• Increasing the company's profit margins by lowering supplier costs

A company is conducting a STEEPLED analysis for expansion. Which of the following represents an economic factor in its decision-making?

• Changes in government environmental policies

• Consumer demand fluctuations and inflation rates

• Shifts in cultural preferences for eco-friendly products

• Stricter labor laws affecting workforce management

A company is considering low-cost country sourcing to improve competitiveness. What is an example of an operational challenge they might face?

• Enhanced brand image due to cost savings

• Increased lead times and potential quality control issues

• Reduced trade barriers and tariff-free imports

• Instant improvement in customer satisfaction

A company expands into a new global market and faces stricter environmental regulations. What should they do?

• Comply with the regulations by adopting sustainable sourcing practices

• Avoid compliance since it increases operational costs

• Shift production to a country with lenient regulations

• Reduce investment in sustainable initiatives

A logistics company wants to minimize bribery and corruption in its supply chain. Which of the following actions would be most effective?

• Establishing strict ethical procurement guidelines and conducting supplier audits

• Ignoring minor ethical violations to maintain supplier relationships

• Increasing reliance on a single supplier without due diligence

• Reducing transparency in financial transactions

A logistics firm wants to improve its competitive advantage through global sourcing. Which of the following is a strategic approach?

• Partnering with suppliers that offer both cost efficiency and ethical compliance

• Sourcing only from domestic suppliers to avoid risks

• Reducing supplier evaluation criteria to increase speed

• Ignoring sustainability factors in decision-making

What is a key driver of globalization in logistics?

• Increasing trade barriers and regulations

• Advances in transportation and digital supply chains

• Reducing international supplier networks

• Limiting cross-border e-commerce expansion

A retailer is analyzing the impact of supply chain disruptions. Which action would best apply?

• Ignoring supplier delays

• Focusing on a single supplier for efficiency

• Diversifying suppliers to mitigate risks

• Reducing inventory safety stocks drastically

A firm discovers that one of its suppliers engages in fraudulent financial reporting. What should they do?

• Continue business as usual to avoid disruption

• Conduct a forensic audit and terminate contracts if violations are confirmed

• Ignore the issue unless external pressure is applied

• Reduce transparency in supply chain operations