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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Gary

1 months ago

I bet the procurement team is feeling 'green' with envy, trying to come up with all these benefits. Maybe they should just say 'because it's the right thing to do'.

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Lilli

9 days ago

A) Fulfilment of a business objective

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Hoa

1 months ago

Increased capacity (B)? That's about as relevant as a unicorn riding a skateboard. This is a sustainability initiative, not an expansion plan.

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Leatha

10 days ago

Leverage of technology (C) could also play a role in implementing a sustainable sourcing strategy.

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Jaleesa

14 days ago

Reduced cost (E) is also a significant business benefit that would be mentioned in the business case.

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Gertude

19 days ago

Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.

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Milly

1 months ago

Leverage of technology (C)? Really? I don't see how that would be a key benefit in this case. They're talking about sourcing and materials, not tech upgrades.

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Niesha

2 months ago

Reduced cost (E) is an interesting one. I'm not sure if that would be a benefit, since sustainable practices often come with a higher price tag.

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Eden

3 days ago

Reduced cost (E) is definitely a benefit. Sustainable practices can actually lead to cost savings in the long run.

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Vi

1 months ago

D) Improved brand equity

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Christiane

1 months ago

A) Fulfilment of a business objective

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Casandra

2 months ago

Fulfilment of a business objective (A) is a no-brainer. This aligns with the corporate goal of sustainability, so it has to be in the business case.

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Sherell

2 months 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

2 months ago

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

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Ryann

2 months ago

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

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Freida

2 months ago

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

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Cyril

2 months ago

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

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Xenia

2 months 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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James

29 days ago

Increased capacity (B) and leverage of technology (C) may not be directly related to a CSR sourcing strategy, but they could still play a role in overall business success.

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Shad

1 months ago

Fulfilment of a business objective (A) is important to show alignment with overall corporate goals.

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Lavelle

1 months ago

Reduced cost (E) could also be a significant business benefit of sourcing ethically and sustainably.

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Carey

2 months ago

Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.

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Mona

2 months ago

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

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