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| Section | Objectives |
|---|---|
| Ending and Reconfiguring Supplier Relationships | - Managing relationship dissolution professionally - Contract termination processes - Exit strategies and transition planning - Supplier base rationalisation |
| Supplier Segmentation and Categorisation | - Supplier classification criteria - Strategic, tactical, and transactional suppliers - Kraljic matrix and portfolio analysis |
| Supply Chain Context | - Understanding the supply chain environment - Stakeholder relationships in procurement - Supplier market analysis |
| Developing Supplier Relationships | - Trust and commitment in supplier partnerships - Partnership models and collaboration approaches - Relationship lifecycle stages - Supplier relationship management (SRM) frameworks |
| Managing Supplier Performance | - Continuous improvement processes - Performance measurement tools and techniques - Key Performance Indicators (KPIs) - Scorecards and supplier audits |
| Supplier Risk and Resilience | - Risk mitigation strategies - Business continuity planning - Supplier vulnerability analysis - Risk identification and assessment |
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NEW QUESTION # 132
Which of the following are not stages of team development? Select TWO.
Answer: A,B
Explanation:
This question is very, very similar to a real exam Question: and is
a really mean one. The CIPS study guide describes stages of team development as forming, storming, norming and performing. Of those listed in the book only forming is listed above. What the textbook fails to tell you is that some people add on two additional stages to this model which are mourning and adjourning. I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model) as it comes up a lot in the exam and the study guide doesn't really go into enough detail.
NEW QUESTION # 133
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
Answer: D
Explanation:
Political factors in STEEPLED analysis relate to:
* Government policy
* Political stability
* State intervention in markets
CIPS identifies grants and subsidies and civil unrest or war as political influences that can significantly impact supply chains.
Consumerism is a social factor, and wage rates are economic factors.
L4M6 Reference:
* Learning Outcome 1: Understand external influences on procurement
* Topic: STEEPLED / PESTLE analysis
* CIPS L4M6 Study Guide - Political and macro-environmental factors
NEW QUESTION # 134
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?
Answer: B
Explanation:
The first step is to obtain business approval to terminate. If Senior Management don't give approval, then the rest of the stages can't happen and Sandra will be stuck with her current banana supplier. There's a good diagram on p.109 detailing the steps to supplier termination.
NEW QUESTION # 135
Red Manufacturing work with around 40 different suppliers. One of these suppliers is Blue Business. Red Manufacturing order regularly from Blue Business, and have never had any issues with their performance. The materials Blue Business supply are of low value and there are several other suppliers of these materials in the market. What type of relationship should Red Manufacturing seek to have with Blue Manufacturing?
Answer: A
Explanation:
The correct answer is 'arms length'. This is a tactical purchase (as it is low value) and keeping the supplier at arms-length means that Red Manufacturing could possibly exploit them to reduce their prices (think back to the Kraljic matrix and where Blue Business would likely fall). A Partnership or Single- Source relationship requires investment into the relationship, and as the products are low value and Red Manufacturing have a lot of other suppliers, they should not be investing time in developing that relationship with Blue Business. An adversarial relationship wouldn't be advantageous as it may lower the performance of the supplier. See the relationship spectrum on p.5 - this is a hot topic for the exam
NEW QUESTION # 136
A large manufacturer is reviewing its most important supplier relationships and is considering introducing a partnership approach with its top-tier suppliers. Which of the following characteristics will this approach incorporate, compared to a more traditional contracting arrangement?
Answer: C
Explanation:
Partnership arrangements promote shared responsibility and joint ownership of outcomes. CIPS highlights that partnerships typically involve:
* Shared risks and rewards
* Joint performance measurement
* Continuous performance review
* Collaborative problem resolution
Traditional contracts often place risk entirely on the supplier, rely on adversarial pricing, and use infrequent reviews. Therefore, risk sharing is a defining feature of a partnership.
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Partnership characteristics and governance
* CIPS L4M6 Study Guide - Risk allocation and collaboration
NEW QUESTION # 137
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