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Updated: Sep 14, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Strategic Sourcing and Category Management | 20-25% | - Category segmentation - Strategic sourcing process - Supplier segmentation and criticality analysis - Spend analysis techniques |
| Topic 2: Ethical and Sustainable Procurement | 15-20% | - Ethical sourcing considerations - Environmental sustainability in procurement - Corporate Social Responsibility (CSR) - Supply chain transparency - Modern slavery and fair trade |
| Topic 3: Procurement Process and Procedures | 25-30% | - Supplier selection methods - Requirements gathering and specification - Contract award criteria - Procurement cycle stages - Purchase ordering and goods receipt |
| Topic 4: Practical Application Scenarios | 15-20% | - Applying theory to real-world procurement situations - Case study analysis - Problem-solving and decision-making - Recommendation and justification skills |
| Topic 5: Supplier Relationship Management | 20-25% | - Supplier performance measurement (KPI, scorecards) - Supplier development and improvement - Supplier relationship types - Partnership and collaboration models - Risk management in supplier relationships |
How does positive social impact present itself?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Organizations which display good behavior create a positive social impact. The community in which they are based and to which they supply will benefit from the following.
1. High employment
2. Fair wages
3. low pollution
4. sustainable resources
5. Engagement and movement with local organization
Describe what should be considered when creating damages terms in a contract.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Damages are 'sum of money that the supplier pays if it fails to carry out its contractual obligation.
When creating terms for damages in the contract, it should be considered that Damages are categorized into two types (liquidated and un-liquidated). And which or if both are applicable to the contract in hand.
Liquidate Damages are fixed amount of money agreed between the parties that is payable if a contract is breached. For example, knowing that supplier not being able to install a device properly in a power transformer may destroy the device and going ahead to include a fee in the contract if the device was destroyed.
Un-liquidated damages are unfixed amount of money. It is used when the amount of money that will compensate the injured party cannot be known in advance. A court decides the amount when the damages occur. For example, knowing that supplier not being able to install a device properly in a power transformer may destroy the device, other appliances and equipment unknown, cause the buyer delay in the process and reputational damage as in customer dissatisfaction. Yet, unquantifiable as both parties are unable to fix a fee in advance on the damages and leaving it to the court to decide the damage if it may occur.
The supplier is responsible for delivering the goods to a named port or destination (such as an air-port or warehouse), as well as unloading them from the terminal from this point, risk passes to the buyer.
Correct Answer: B 🗳️
Explain which factors should be considered when deciding the quantity of a product to order.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
When reviewing supplier's response the procurement professional should consider the right quantity of product or service that has to be ordered at anytime as against the price to decide how to gain the best cost.
Factors to consider include the following
(1)Cost of inventory
(2) cost of insurance
(3) cost of transportation.
These three should be considered against price.
Note: Incoterms are versatile and procurement professionals should understand how they are ap-plied and what point the risk transfers from being the supplier's responsibility to being the buyer's responsibility. It is important to consult the ICC for the most recent definitions, but in the following questions (101-111) you can understand the rules.
Note: sharpen your knowledge on INCOTERMS. Please consider the following Objective Re-sponse questions
Describe two ways in which an organization with which you are familiar could use continuous im-provement as part of whole life asset management.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Continuous improvement relates to removing waste from the supply chain and improving processes to increase efficiency within whole life asset management in a full power project (a flour producing firm) can benefit from continuous improvement in the following ways;
1) Reduce cost of spears by recondition parts, instead of disposing them out rightly.
2) Can reduce down time by conducting routine maintenance after hours.
3) Can reducing accident by up skilling operators on safety
4) Can reduce waste oil by following owner's manual instead of relying on experience.
5) Create efficiencies by operating a 24/7 shift pattern.
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