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CIPS L4M4 - Ethical & Responsible
Sourcing. Exam Questions and Answers
100% Pass
What does RFQ stand for and what does it mean? - Answer✔Request for quote - It is an
invitation to suppliers to ask them to give a quotation to supply goods and services.
What does ITT stand for and what does it mean? - Answer✔Invitation to tender - It is a formal
invitation sent to suppliers inviting them to make an offer to supply goods and services.
What is the key difference between a RFQ and an ITT? - Answer✔An RFQ is less formal and less
detailed whereas an ITT is more formal and more detailed.
What can a RFQ involve? - Answer✔Specification
Technical drawings
Samples
Quantities
What are the two types of sourcing? - Answer✔Tactical & Strategic
What is the difference between tactical & strategic sourcing? - Answer✔Tactical is short term
low risk, low value items (routine items)
1
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Strategic is longer term more critical and high risk items (core products/services)
What are the 6 stages of the sourcing process? - Answer✔Identification of the requirement
Sourcing plan
Market analysis
Pre-qualification of suppliers
Evaluating supply offers and options
Creation of contract or relationships
What is make vs buy? - Answer✔Deciding whether a product or service should be made within
the organisation or brought in from an external supplier
What are 3 factors to consider when thinking about make vs buy? - Answer✔Is the
product/service core to the organisation?
Would it create EOS (economies of Scale) if you nought in from an existing supplier? may result
in cost saving.
How much competition is there? If there is no/little suppliers, the buying organisation may not
be able to negotiate a favourable price.
What are the benefits of a make decision? - Answer✔Strategy of the organisation is to be self
sufficient.
Enhanced control over process
Improved quality control
Workforce remains stable
Continuity of supply
No suitable 'buy' suppliers
2
CIPS L4M4 - Ethical & Responsible
Sourcing. Exam Questions and Answers
100% Pass
What does RFQ stand for and what does it mean? - Answer✔Request for quote - It is an
invitation to suppliers to ask them to give a quotation to supply goods and services.
What does ITT stand for and what does it mean? - Answer✔Invitation to tender - It is a formal
invitation sent to suppliers inviting them to make an offer to supply goods and services.
What is the key difference between a RFQ and an ITT? - Answer✔An RFQ is less formal and less
detailed whereas an ITT is more formal and more detailed.
What can a RFQ involve? - Answer✔Specification
Technical drawings
Samples
Quantities
What are the two types of sourcing? - Answer✔Tactical & Strategic
What is the difference between tactical & strategic sourcing? - Answer✔Tactical is short term
low risk, low value items (routine items)
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Strategic is longer term more critical and high risk items (core products/services)
What are the 6 stages of the sourcing process? - Answer✔Identification of the requirement
Sourcing plan
Market analysis
Pre-qualification of suppliers
Evaluating supply offers and options
Creation of contract or relationships
What is make vs buy? - Answer✔Deciding whether a product or service should be made within
the organisation or brought in from an external supplier
What are 3 factors to consider when thinking about make vs buy? - Answer✔Is the
product/service core to the organisation?
Would it create EOS (economies of Scale) if you nought in from an existing supplier? may result
in cost saving.
How much competition is there? If there is no/little suppliers, the buying organisation may not
be able to negotiate a favourable price.
What are the benefits of a make decision? - Answer✔Strategy of the organisation is to be self
sufficient.
Enhanced control over process
Improved quality control
Workforce remains stable
Continuity of supply
No suitable 'buy' suppliers
2
