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CIPS L4M8 Exam Syllabus Topics:

CIPS Procurement and Supply in Practice Sample Questions:

1. Explain three strategic decisions that could be made or enhanced by using the STEEPLE or SWOT analysis

2. What matrix helps to define how to manage stakeholders?

3. What do STEEPLE and SWOT stand for?

4. Maximum Score: 25
Examine FIVE methods OrganiBake could use to monitor suppliers' performance against Environmental, Social and Governance (ESG) principles.
(25 marks)
OrganiBake, a rapidly growing bakery business specialising in organic and sustainably sourced goods, is experiencing a significant increase in consumer demand. To meet this demand, OrganiBake needs to significantly expand its production capabilities, which will involve forging closer relationships with its network of ingredient suppliers. The Chief Procurement Officer (CPO) at OrganiBake is aware that the company's brand reputation is built on its commitment to ethical and sustainable practices throughout its supply chain, from sourcing organic grains to packaging its final products. The CPO is concerned that scaling up production volumes quickly might expose OrganiBake to additional Environmental, Social and Governance (ESG) risks within its extended supply chain. The CPO recognises the critical need for transparent and consistent communication with suppliers to maintain robust ESG standards as they grow.
Recent scrutiny from environmental groups has raised concerns regarding the industry's water usage and potential pesticide runoff associated with some grain suppliers' farming practices. Allegations have also surfaced about unfair labour practices in the industry and low wages at key suppliers Of packaging materials. OrganiBake's current reliance on a basic supplier self-assessment questionnaire for ESG assessment is now considered to be insufficient to provide the proactive monitoring required to manage these increasingly complex supply chain sustainability challenges effectively.
The CPO understands the need to move beyond a simple self-assessment questionnaire to ensure the viability of suppliers and mitigate reputational risks.

5. Which Incoterm applies here?
The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination and must also cover the cost of this. The supplier bears all risks until the goods are delivered to the buyer at their named place.

A) AS - Free Alongside Ship
B) CIF - Cost Insurance and Freight
C) DAP - Cost and Freight
D) FOB - Free On Board

Solutions: