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CIPS L4M6 - Supplier Relationships

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Page: 8 / 8
Total 263 questions

According to the STEEPLED analysis framework, what considerations are likely to be evaluated under the ‘political’ factor?

    Consumerism in the supply chains

    Grants and subsidies to the supply chains

    Civil unrest and war in the supply chains

    Wage rates in the supply chains

A.

1 and 2 only

B.

2 and 3 only

C.

3 and 4 only

D.

1 and 4 only

Pablo has run an open- competition to secure a new contract for a supplier of paper for his Birthday Card making company. He has received 10 submissions from various suppliers and needs to put a team together to evaluate the bids. What type of team should Pablo consider?

A.

A team composed of internal stakeholders

B.

A cross-functional team

C.

A team of procurement experts

D.

A team composed of internal and external stakeholders

Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.

A.

Request for Information

B.

Request for Quotation

C.

Pre-Qualification Questionnaire

D.

Invitation to Tender

In the relationship spectrum, which of the following describes the most competitive relationship?

A.

Outsourcing

B.

Transactional

C.

Single sourced

D.

Adversarial

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

A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers. What would be the most beneficial way for them to initially narrow down the supply options?

A.

Look at lowest-cost suppliers only

B.

Predefine minimum standards suppliers must meet

C.

Go only to companies they have bought other products from

D.

Preselect companies who have the largest market share

The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modelling activity. This will be undertaken with a cross-organisational team of internal stakeholders and key strategic suppliers. What would be the buyer's initial objective from the cost modelling activity?

A.

To understand the supplier's investment plans

B.

To understand the supplier's financial status

C.

To understand the supplier's pricing strategy

D.

To understand the supplier's competitive threats

The purpose of supplier pre-qualification is to identify suppliers that have the financial stability to assist in continuous supply. Is this statement TRUE?

A.

Yes, because profitability ratios are always used to determine the most suitable potential supplier

B.

Yes, although the sustainability of supply should be determined by considering other factors

C.

No, financial stability can be determined by accountants only

D.

No, the most important aspect of determining supplier suitability is by trial orders