CIPS Exam L4M4 Topic 1 Question 19 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 19
Topic #: 1

[All L4M4 Questions]

Which of the following would be considered a strategic sourcing activity?

Aan office ordering copier paper

Ba bakery ordering eggs

Ca factory ordering a new machine

Da restaurant ordering plastic cups

Show Suggested Answer

Suggested Answer: D

This is a facilitation payment. It's when a sum of money is given for 'helping to facilitate' a contract. E.g. a procurement manager may accept a facilitation payment from a supplier for selecting him to be a new supplier for a big contract.

In the UK this is definitely considered a bribe. It's also against the CIPS Code of Conflict

by Stefania at Sep 07, 2024, 09:00 AM

Limited Time Offer

25%

Off

Get Premium L4M4 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Yoko

2 days ago

I agree with Shalon. Ordering a new machine is a long-term investment that can impact the entire production process.

upvoted 0 times

...

Shalon

4 days ago

I think C) a factory ordering a new machine would be a strategic sourcing activity.

upvoted 0 times

...

Vicky

9 days ago

A new machine? That's like ordering a Ferrari for my tricycle business. Strategic sourcing is all about the big moves, not just restocking the essentials.

upvoted 0 times

...