©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
CIPS L4M4 - RESPONSIBLE AND
ETHICAL SOURCING. Exam Questions
and Answers 100% Pass
What does sourcing mean? - Answer✔When procurement professionals try to find suitable
suppliers, products or services for the right money, quantity etc
What are the two types of sourcing? - Answer✔Tactical and Strategic
What is Tactical Sourcing? - Answer✔This involves low level decision making
High profit, low risk items
Short term projects
Transactional relationships
What is strategic sourcing? - Answer✔Top level decision making
High profit, high risk items
Long term projects
Collaborative relationships
What factors are normally taken into account when sourcing? - Answer✔Price
Delivery
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Quality
Ethics
Sustainability
Availability
What are NOVACK and SIMCO'S 11 stage sourcing process? - Answer✔Identify needs
Define user requirements
Decide whether to make or buy
Identify purchase type
Carry out market analysis
Identify potential suppliers
Pre screen suppliers and create shortlists
Evaluate shortlisted suppliers
Supplier selection
Final product of service delivered
Evaluate supplier performance
What is outsourcing? - Answer✔Outsourcing means contracting an external supplier to manage
and run a function that was previously handled IN HOUSE
What reasons may procurement choose to outsource something? - Answer✔Financial
Technological
Resource
Skillset
Improved focus
Reduce risk
2
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
What is a MAKE OR BUY decision? - Answer✔This is whether to manufacture a product or to
find from an external supplier
What are Porter's Five Forces? - Answer✔Character of the rivalry, threat of new entrants,
threat of substitute products or services, bargaining power of suppliers, bargaining power of
buyers
What are leverage items? - Answer✔High cost, low risk
What are strategic items? - Answer✔High risk, high cost
What are non critical items? - Answer✔Low risk, low cost
What are bottleneck items? - Answer✔High risk, low cost
What are the 3 types of of buys? - Answer✔Straight re-buy
Modified re-buy
New buy
What is outsourcing? - Answer✔Contracting an external supplier to manage and run a function
that was previously handled in house.
What are Porter's 5 forces? - Answer✔supplier power, threat of substitutes, buyer power,
threat of new entrants, degree of rivalry
What is not recommended when outsourcing? - Answer✔Outsourcing core activities is NOT
recommended
3
CIPS L4M4 - RESPONSIBLE AND
ETHICAL SOURCING. Exam Questions
and Answers 100% Pass
What does sourcing mean? - Answer✔When procurement professionals try to find suitable
suppliers, products or services for the right money, quantity etc
What are the two types of sourcing? - Answer✔Tactical and Strategic
What is Tactical Sourcing? - Answer✔This involves low level decision making
High profit, low risk items
Short term projects
Transactional relationships
What is strategic sourcing? - Answer✔Top level decision making
High profit, high risk items
Long term projects
Collaborative relationships
What factors are normally taken into account when sourcing? - Answer✔Price
Delivery
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Quality
Ethics
Sustainability
Availability
What are NOVACK and SIMCO'S 11 stage sourcing process? - Answer✔Identify needs
Define user requirements
Decide whether to make or buy
Identify purchase type
Carry out market analysis
Identify potential suppliers
Pre screen suppliers and create shortlists
Evaluate shortlisted suppliers
Supplier selection
Final product of service delivered
Evaluate supplier performance
What is outsourcing? - Answer✔Outsourcing means contracting an external supplier to manage
and run a function that was previously handled IN HOUSE
What reasons may procurement choose to outsource something? - Answer✔Financial
Technological
Resource
Skillset
Improved focus
Reduce risk
2
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
What is a MAKE OR BUY decision? - Answer✔This is whether to manufacture a product or to
find from an external supplier
What are Porter's Five Forces? - Answer✔Character of the rivalry, threat of new entrants,
threat of substitute products or services, bargaining power of suppliers, bargaining power of
buyers
What are leverage items? - Answer✔High cost, low risk
What are strategic items? - Answer✔High risk, high cost
What are non critical items? - Answer✔Low risk, low cost
What are bottleneck items? - Answer✔High risk, low cost
What are the 3 types of of buys? - Answer✔Straight re-buy
Modified re-buy
New buy
What is outsourcing? - Answer✔Contracting an external supplier to manage and run a function
that was previously handled in house.
What are Porter's 5 forces? - Answer✔supplier power, threat of substitutes, buyer power,
threat of new entrants, degree of rivalry
What is not recommended when outsourcing? - Answer✔Outsourcing core activities is NOT
recommended
3
