Ace Your L4M4 CIPS Level 4 Diploma in Procurement and Supply Exam

Incorporating standards within specifications provides clear guidelines for suppliers, reducing ambiguity and helping ensure consistency in quality and performance. This aligns with ethical and responsible sourcing practices by promoting transparency and setting consistent expectations for suppliers.

Strategic sourcing focuses onlong-term value creation, alignment with organisational objectives, and cross-functional stakeholder involvement. Reviewing product design modifications with stakeholders directly influences cost, sustainability, quality, and supply risk over the product lifecycle. Similarly, evaluating quotations for major systems such as accounting software represents a high-value, long-term sourcing decision with strategic impact. In contrast, sourcing office chairs and routine stationery purchases are low-value, repetitive activities and are therefore classified as tactical sourcing. Ethical and responsible sourcing requires procurement professionals to prioritise strategic activities that affect long-term performance, risk management, and sustainability outcomes.

Explanation

The Pareto Principle can be used when considering changing a supplier. It helps to categories suppliers by how strategically important the item is that they provide to the business.

Explanation

The correct answer is 'no - added value may change from one company to another'.

Added value is very subjective. What one person thinks is excellent added value, another may not rate highly. For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.

The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.