L5M5 Practice Questions

The L5M5 study guide highlights several tools procurement can use to embed ethics and sustainability into supply chains. These include benchmarking (A), which compares practices against best-in-class organisations; supply chain mapping (C), which provides visibility of all tiers of suppliers to identify risks; and on-site audits (D), which verify supplier compliance with ethical standards directly. Supplier preferencing (B) is a portfolio analysis tool used to understand suppliers’ perspectives, not specifically an ethical improvement tool. Cost analysis (E) is primarily financial and does not ensure ethical compliance. Procurement professionals must apply tools like mapping and audits to identify risks such as forced labour, environmental harm, or corruption.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on supplier evaluation and sustainability tools

The L5M5 study guide (p.8) outlines the six key components of a CSR plan: CSR Assessment, CSR Strategy and Refinement, Implementation Plan and Activities (C), Commitment to Stakeholder Engagement (D), and Verification and Evaluation of Results (E). An introduction (A) and financial analysis (B) may support a CSR plan but are not listed as key components. Procurement professionals should ensure CSR plans are robust, measurable, and involve stakeholder engagement to gain legitimacy and trust.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.8

The Wine and Agricultural Ethical Trade Association (WIETA) is an organisation promoting fair trade and ethical practices in South Africa’s wine industry. The L5M5 study guide (p.262) outlines WIETA’s principles, which align with ILO standards. These include prohibition of forced labour, ensuring working hours are not excessive, and providing regular employment rather than temporary or exploitative contracts. Options D and E are not accurate—no workplace can be entirely free of risk, and sick pay is determined by national legislation, not WIET

A.  

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.262

Total Landing Costs include all costs incurred to bring goods to the buyer’s location. According to the L5M5 study guide (old p.81, new p.107), these include delivery costs (B), currency conversion costs (C), and import duties (E). Motor insurance (A) and disposal costs (D) are post-delivery expenses and not part of landing costs. Procurement professionals must calculate total landing costs to make accurate sourcing decisions and avoid hidden expenses that can erode cost savings from international procurement.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.107

The Supply Chain Operations Reference (SCOR) model is a widely adopted framework for analysing and improving supply chain performance. According to the L5M5 study guide (p.149), advantages of SCOR include its universality across industries (A) and its ability to improve and communicate organisational decisions (C) by providing a common language and structure for supply chain processes. A limitation of SCOR is that it focuses primarily on internal processes and does not adequately capture wider external environmental or social factors (making option B incorrect). While SCOR can help identify cost-saving opportunities, it does not guarantee low costs (D). For procurement professionals, SCOR is an important tool for benchmarking performance and driving improvements in ethical supply chain management.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.149