Ethical and Responsible Sourcing (L4M4)

• Understand different options for sourcing requirements from suppliers.
• Understand processes used to analyse potential external suppliers.
• Learn how supplier selection and award criteria can be applied.
• Understand quotation and tendering processes.
• Understand compliance requirements when sourcing from suppliers.
• Understand international sourcing requirements, including Incoterms, customs and payment mechanisms.
• Apply environmental, social and governance practices to responsible sourcing.
• Understand the use of audits, supplier monitoring and KPIs to evaluate ESG standards.

1. Options for sourcing requirements from suppliers

• Sourcing and outsourcing.
• Make-or-buy decisions.
• Intracompany trading.
• Strategic and tactical sourcing.
• Costs and benefits of outsourcing.
• Single, dual and multiple sourcing.
• Tendering approaches.
• Direct negotiation with suppliers.
• Supplier selection criteria.
• Financial indicators including profitability, liquidity, gearing and cash.
• Award criteria including price, whole-life costs, technical merit, added value, environmental, social, governance and ethical factors.

2. Processes for analysing potential external suppliers

• Supplier spend data.
• Economic activity and commodity pricing indices.
• Market and supplier information.
• Financial statements and their limitations.
• Credit rating agencies.
• Advertising requirements.
• Requests for information and quotations.
• Tendering processes.
• Assessment of supplier proposals.
• Weighted points systems.
• Assessment of ESG and ethical elements.
• Added-value assessment.
• Recommendations and contract award procedures.

3. Compliance issues when sourcing from suppliers

• International, national and local regulatory requirements.
• Environmental, social and governance considerations.
• Bribery, corruption and fraud.
• Human rights and modern slavery.
• Public, private and third-sector procurement requirements.
• International sourcing requirements.
• Import documentation, duties and tariffs.
• Customs controls and clearance.
• Incoterms®.
• Payment mechanisms, including credit accounts, bills of exchange and letters of credit.
• Applicable law and jurisdiction.
• CIPS Code of Conduct.
• Supplier monitoring and KPIs.
• Audits and supplier dialogue.
• Triple bottom line: profit, people and planet.
• ESG standards and reporting frameworks.
• Environmental and social outcomes as part of value for money.

10 days

Certification: CIPS Level 4 Diploma in Procurement and Supply – Ethical and Responsible Sourcing (L4M4)

Duration: 1.5 hours

Questions: 60 Objective Response questions

• Individuals planning a career in procurement and supply.
• Professionals in operational procurement and supply roles.
• Individuals managing or supervising procurement and supply functions.
• CIPS Level 4 Diploma learners.
• Professionals seeking to develop their procurement and supply career and work towards MCIPS.

• A minimum of two A-levels or international equivalent, or a CIPS Level 3 Advanced Certificate qualification.
• Alternatively, a minimum of two years' relevant experience in a business environment.