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| Section | Weight | Objectives |
|---|---|---|
| Approaches to Managing Supplier Relationships | 35% | - Relationship management strategies
|
| Conflict and Dispute Resolution | 20% | - Approaches to negotiation and resolution
|
| Improving Supplier Relationships | 15% | - Risk management and resilience - Sustainability and ethical considerations - Process improvement and value creation |
| Dynamics of Relationships in Supply Chains | 30% | - Portfolio analysis techniques
- Types of commercial relationships
|
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NEW QUESTION # 92
In the STEEPLED framework, which of the following is an economic factor?
Answer: C
Explanation:
Economic factors such as unemployment rates affect labor availability, wages, and consumer purchasing power, directly impacting business operations and supply chains.
NEW QUESTION # 93
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
Answer: B,D
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40
NEW QUESTION # 94
A car manufacturer orders engine components from a supplier. The engine is the most expensive component and without it production cannot continue. Where should the supplier be positioned in the supply chain?
Answer: B
Explanation:
Using Kraljic's Portfolio Matrix, CIPS classifies items based on:
* Financial impact
* Supply risk
Engines have:
* High financial value
* High supply risk, as production cannot proceed without them
This places the supplier firmly in the strategic quadrant, requiring close relationship management, risk mitigation, and long-term collaboration.
L4M6 Reference:
* Learning Outcome 2: Understand supply positioning and risk
* Topic: Kraljic portfolio analysis
* CIPS L4M6 Study Guide - Strategic items and supplier relationships
NEW QUESTION # 95
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.
Answer: A,C
Explanation:
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their 'core' business so they should retain this in-house
NEW QUESTION # 96
A university is working with a software company to develop a new research software package. What consideration would be particularly important before terminating the relationship?
Answer: C
Explanation:
When jointly developing software, intellectual property (IP) rights are a critical consideration. CIPS stresses that procurement professionals must clarify:
* Ownership of developed IP
* Rights to use, modify, or commercialise the software
* Licensing arrangements after contract termination
Before terminating the relationship, the university must ensure it retains the necessary IP rights to continue using or developing the software, or it may lose access to a key asset.
Security, employment, and financial rights are relevant but secondary compared to IP ownership in a collaborative software development arrangement.
L4M6 Reference:
* Learning Outcome 4: Understand legal and contractual aspects of supplier relationships
* Topic: Intellectual property in collaborative relationships
* CIPS L4M6 Study Guide - Contractual considerations and IP protection
NEW QUESTION # 97
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