L4M4 Ethical and Responsible Sourcing

Hi-Tech Products Inc (HTPI) has developed a new product, the patent for which has been registered worldwide.

It has identified target customers and potential distributors for the product to be sold around the world. HTPI realises that profit margins will be tight and so finding the best suppliers will be key. It is open to ideas in terms of production processes and is keen to learn more from the supply market, before running a formal competition.

Which of the following should HTPI conduct as a priority?

• Competitive negotiation

• ITT

• RFI

• Supplier Appraisal

In which of the following approaches, the negotiator will focus on finding a mutually benefit outcome where the supplier has significant potential to help buyer innovate and launch new product/service? A...

• Competitive style

• Collaborative style

• Compromising style

• Avoiding style

Which of the following items should the procurement professional allocate the least amount of time and resources to when evaluating supplier’s proposals?

• Routine

• Bottleneck

• Strategic

• Leverage

Which of the following best describes the restricted tendering process

• The supplier can submit the bid anytime after the deadline

• Any unqualified supplier can submit the bid

• There is no competition among the bidders

• The use of pre-qualified suppliers

Which of the following is the best description of in-sourcing?

• A private network within an organisation or group of organisations

• To source goods or services from functions within a company or an organisation

• To bring a function of activities back in-house after previously being outsourced

• To source goods or services from companies which belong to the same group

Procurement professionals need to focus their time and resources on finding the right supplier for the items that have high profit impact and high supply risk. These items are scarce in the supply market and there may be few or no competing suppliers. What is the name of this group of items?

• Strategic items

• Leverage items

• Non-critical items

• Bottleneck items

Under Incoterm Free On Board (FOB), typically used for sea freight, who is responsible for delivering the goods onto the vessel?

• The ship’s Master

• The buyer’s agent

• The buyer

• The seller

When awarding a contract for a complex specification Total Cost of Ownership (TCO) should be used. When purchasing an additional truck for a vehicle fleet, annual vehicle servicing costs and annual government inspection costs need to be considered. Under which category should these costs be captured?

• Maintenance

• Acquitision

• Operating

• Purchase Price

There are three main approaches to tendering; Open, Restricted and Negotiated which one of the following is another option:

• Tri Party Agreement

• Competitive

• Framework Agreement

• Panel Agreement

There are 4 stages to Direct Award...Preparation and Closing...Choose TWO that apply

• Information Exchange

• Knowledge Transfer

• Bargaining

• Compromising