The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?
The balance sheet (Statement of Financial Position) is one of the financial statements used in providing important information required in determining the supplier's financial stability. The balance sheet contains information on such items as...
Azram is a facilities category buyer within the UK police force and is managing an overseas sourcing project for police uniform and personal protective equipment. Azram is of the opinion that international sourcing will help deliver much-needed financial savings, which can be utilized in other areas of the UK police force. Azram is aware that exchange rate fluctuations can create risk for his organisation. How can Azram remove this risk?
Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?
An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?
The sourcing process is considered to include the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include ...
Which of the following are primary sources of data? Select TWO.
An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
What type of relationship should a buyer seek when making strategic sourcing for their business?
A company's balance sheet will show you which of the following?
Which of the following are signs that modern-day slavery might be taking place within the supply chain? Select THREE.
Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?
The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?
Which of the following factors are typically considered when assessing a supplier's financial capacity?
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.
What is the best way to prevent potential issues of conflicts of interest?
When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?
When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored. Which of the following questions would be assessing any of the ESC criteria?
Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
How do you promote equal opportunity for your employees, customers, and suppliers?
What is the annual turnover and profitability of your company?
Does your company have an anti-bribery policy?
When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making. The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.
When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?
What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?
Which of the following are primary sources of data? Select TWO.
A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year’s purchase orders and has been asked to confirm the month of order placement. The buyer has found three trends:
In January and April, the supplier's local currency is stronger
November typically has the lowest demand
May typically has the highest demand
Which month should the buyer plan to place the purchase order?
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
Which of the following Incoterms has the lowest risk for the supplier?
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?
What would an EBITDA ratio show you?
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
Which award criteria can be applied when sourcing requirements from external suppliers?
Which of the following is an example of intracompany trading? Select TWO
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
'Phishing' is an activity that can occur when an employee within an organisation receives an email that appears to be from a genuine supplier but is false. These types of emails expose the organisation to the activities of expert cyber criminals. Which type of crime category does this activity fall within?
Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?
Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
What is the best way to prevent potential issues of conflicts of interest?
If a company is described as 'liquid' what does this mean?
Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?
As a procurement officer for a large organisation, a supplier approaches you on social media offering to take you out for dinner to discuss a recent open opportunity and mentions a financial reward if you help them win the business. You accept the invite. Was this the right thing to do?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
Which of the following is an advantage to the TUPE regulations?
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender. Which of the following should be considered?
Which of the following is an example of intracompany trading? Select TWO
A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?
Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?
A company's balance sheet will show you which of the following?
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender. Which of the following should be considered?
Which of the following is a UK legislation concerning product safety?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
Fraudulent activity
Bribery
Modern slavery
Breach of confidentiality
Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?
An emphasis on long-term supplier relationships where possible
Maintaining service levels within value and cost parameters
All dealings between buyers and suppliers are kept confidential
A competitive tendering process is usually encouraged
When looking at credit scores, a supplier may be classified as a high risk for reasons that are notlinked to poor credit. Which of the following could these be? Select TWO
It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?
What are the risks of outsourcing?
Loss of control of a project
Loss of assets
Loss of future business opportunities
Loss of private information