NEW 2025 CIPS L4M4 ETHICAL AND RESPONSIBLE
SOURCING QUESTIONS AND ANSWERS
What are the two types of sourcing? - ANSWER Tactical/Operational &
Strategic
What is tactical sourcing? - ANSWER Low level sourcing for low risk or
routine items
What is strategic sourcing? - ANSWER High level sourcing for core products
or services
Benefits of make decision? - ANSWER Strategy of organisation is to be self
sufficient
Enhanced control over processes
Improved quality control
Workforce remains stable
Continuity of supply
No suitable suppliers to buy from
Economies of scale available
Reduced risk
Easier to amend volumes/specs
Benefits of buy decision? - ANSWER Specialised knowledge available
Technological advances available
, Small volumes not cost effective to make
Cheaper to buy in than make
Economies of scale available
No capacity in house
Less inventory
Reduced overheads
Four categories of the Kraljic Matrix - ANSWER Non-critical
Leverage
Strategic
Bottleneck
Should core functions be outsourced? - ANSWER No, they should remain in
house
Which functions are frequently outsourced? - ANSWER IT
Catering
Cleaning
Marketing
Social Media
HR
Accountancy
Payroll
Carter's 10 C's - ANSWER Competency
Capacity
SOURCING QUESTIONS AND ANSWERS
What are the two types of sourcing? - ANSWER Tactical/Operational &
Strategic
What is tactical sourcing? - ANSWER Low level sourcing for low risk or
routine items
What is strategic sourcing? - ANSWER High level sourcing for core products
or services
Benefits of make decision? - ANSWER Strategy of organisation is to be self
sufficient
Enhanced control over processes
Improved quality control
Workforce remains stable
Continuity of supply
No suitable suppliers to buy from
Economies of scale available
Reduced risk
Easier to amend volumes/specs
Benefits of buy decision? - ANSWER Specialised knowledge available
Technological advances available
, Small volumes not cost effective to make
Cheaper to buy in than make
Economies of scale available
No capacity in house
Less inventory
Reduced overheads
Four categories of the Kraljic Matrix - ANSWER Non-critical
Leverage
Strategic
Bottleneck
Should core functions be outsourced? - ANSWER No, they should remain in
house
Which functions are frequently outsourced? - ANSWER IT
Catering
Cleaning
Marketing
Social Media
HR
Accountancy
Payroll
Carter's 10 C's - ANSWER Competency
Capacity