CIPS L4M6 - Supplier Relationships

Explanation

The correct answer is ‘greater creativity’. A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. P.160

Explanation

ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this

Explanation

The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.

Comprehensive and Detailed Explanation:

Collaborative partnering relationships are characterized by high levels of trust, mutual objectives, shared information, and long-term commitment. Among the options provided:

Co-destiny: This represents the highest level of collaboration, where both parties' futures are closely linked, and decisions are made jointly for mutual benefit.

Strategic alliance: This involves a formal agreement between organizations to pursue shared objectives while remaining independent entities.

These relationship types are positioned on the collaborative end of the relationship spectrum, emphasizing joint efforts and shared success.

Explanation

The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.

Cost leadership strategy (Porter’s Generic Strategies) is often called a “no-frills” approach. The focus is on being the lowest-cost producer in the industry, allowing the organisation to serve a broad market with minimal differentiation. This approach reduces cost while widening competitive scope, enabling companies to compete on price advantage.

Explanation

The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152

Explanation

This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.

Explanation

This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development