CIPS Exam L4M2 Topic 2 Question 33 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 33
Topic #: 2

[All L4M2 Questions]

The procurement team of a global supermarket has created a business case for a corporate social responsibility (CSR) sourcing strategy to meet the corporate objective of sustainability. This would require sourcing only from suppliers who meet ethical standards, a reduction in plastic, and using recycled material where possible. Which of the following business benefits would be mentioned in the business case? Select TWO that apply:

AFulfilment of a business objective

BIncreased capacity

CLeverage of technology

DImproved brand equity

EReduced cost

Show Suggested Answer

Suggested Answer: B

Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.

LO 2, AC 2.1

by Arthur at Apr 28, 2024, 05:23 AM

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Sherell

9 days ago

I'm not sure about D), but I think E) Reduced cost could also be mentioned in the business case.

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Kristian

10 days ago

I agree with Ryann. I also think D) Improved brand equity would be mentioned as a business benefit.

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Ryann

12 days ago

I think A) Fulfilment of a business objective would be mentioned in the business case.

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Freida

14 days ago

Reduced cost could also be a significant benefit, as using recycled materials can lead to cost savings.

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Cyril

16 days ago

I agree with Mona. D) Improved brand equity would also be a key benefit mentioned.

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Xenia

18 days ago

A business case for a CSR sourcing strategy should definitely mention improved brand equity (D) as a key benefit. Customers these days really care about sustainability and ethical practices.

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Mona

21 days ago

I think A) Fulfilment of a business objective would be mentioned in the business case.

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