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CIPS L4M6 - Supplier Relationships

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Total 243 questions

An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?

A.

1 and 2

B.

1 and 3

C.

3 and 4

D.

1 and 4

Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.

A.

Open Procedure

B.

Mini-Competition Procedure

C.

Restricted Procedure

D.

Two-stage Procedure

E.

Competitive Bidding Procedure

A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren't very expensive to buy. What type of supplier is the supplier of mixer valves?

A.

leverage

B.

strategic

C.

routine

D.

bottleneck

A supermarket is struggling with sales and has done an analysis on its competitors. It has discovered that it has two major competitors; one provides groceries at a much cheaper price and another that provides only organic products. The supermarket has decided that it wants to continue providing groceries to a wide target audience but that it will compete by offering superior customer service. What is the supermarket's source of competitive advantage?

A.

cost leadership

B.

differentiation

C.

cost focus

D.

differentiation focus

The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?

A.

It is important to keep the CEO informed of all decisions that are made

B.

It is important to keep the CEO satisfied as he runs the business

C.

The CEO is a key player- so it is important he is involved early in the process

D.

The CEO is a key player- so should be given regular updates on progress

Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?

A.

Obtain business approval to terminate the contract

B.

Develop an exit strategy

C.

Review the market and look for an alternative supplier

D.

Give written notice to the supplier of plans to terminate

A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?

A.

Sociocultural

B.

Technological

C.

Economic

D.

Ethical

Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

A.

cost leadership

B.

differentiation

C.

cost focus

D.

differentiation focus

What is collaborative inertia?

A.

the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts

B.

A situation when the apparent output from collaboration is considerably less than expected

C.

When a partnership is unable to create new ideas

D.

Where a third party is invited to join a partnership.

In a partnership who is responsible for decision making?

A.

The project steering committee

B.

Both the supplier and the buyer

C.

The buyer

D.

The supplier