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NEW QUESTION 37
What is the purpose of using key performance indicators in procurement and supply?

  • A. To qualify which supplier is suitable
  • B. To ease the termination process
  • C. To monitor supplier's performance
  • D. To validate the supplier's bid or tender

Answer: C

Explanation:
Procurement teams use key performance indicators (KPIs) to ensure vendors comply with (and hopefully exceed) the obligations outlined in a contract. They help us better understand suppliers' performance, measure their output over a long period of time, and identify areas where improvement is needed.
Put simply, it's good business sense to make sure you're actually getting what you've paid for. This might be as straightforward as confirming a product or service is delivered on time, which means the KPIs you need to use will be minimal and basic.
Reference:
- Supplier KPIs | 7 Performance Indicators You Should Be Measuring - Una
- CIPS study guide page 101-102
LO 2, AC 2.2

 

NEW QUESTION 38
Which of the following is regulated by standard ISO 14001?

  • A. Energy management
  • B. Quality management systems
  • C. Environmental management
  • D. Information security management

Answer: C

Explanation:
ISO has about 22,000 international standards covering a vast range of aspects of product or service quality. Below are some of the most common ISO standards:
- ISO 9001: Quality management system
- ISO 27001: Information security management
- ISO 5001: Energy management
- ISO 14001: Environmental management
Reference:
- ISO 14001:2015 Environmental management systems - Requirements with guidance for use
- CIPS study guide page 86
LO 2, AC 2.1

 

NEW QUESTION 39
Which of the following are always considered as minimum preconditions for a contract? Select TWO that apply:

  • A. Intention to be bound
  • B. Specification
  • C. Omission
  • D. Consideration
  • E. Promise

Answer: A,D

Explanation:
In order to form a contract to come into being, there are five conditions:
- Offer
- Acceptance
- Consideration
- Intention to be legally bound
- Capacity to contract
Reference:
LO 1, AC 1.2

 

NEW QUESTION 40
A purchase order can become a contract between supplier and purchaser if it is...?

  • A. Accepted by the supplier
  • B. Issued by the buyer
  • C. Received by the supplier
  • D. Edited by the supplier

Answer: A

Explanation:
A purchase order is a document sent from a buyer to a seller, with a request to order a product. The purchase order often has its number, description and quantity of the goods, unit prices and total price, name of issuer, time of delivery, standard terms and conditions, etc. It is effectively an offer to supplier. The purchase order will become a formal contract if supplier accepted it by written notice or by performance (such as deliver the goods to the buyer's premise).
Reference:
LO 1, AC 1.2

 

NEW QUESTION 41
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