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| Section | Weight | Objectives |
|---|
| Topic 1: Conflict and Dispute Resolution | 20% | - Sources of conflict in relationships - Approaches to negotiation and resolution
- 1. Negotiation styles and techniques
- 2. Formal and informal dispute resolution
|
| Topic 2: Improving Supplier Relationships | 15% | - Process improvement and value creation - Sustainability and ethical considerations - Risk management and resilience
|
| Topic 3: Dynamics of Relationships in Supply Chains | 30% | - Types of commercial relationships
- 1. Relationship spectrum and life cycle
- 2. Internal and external relationships
- Competitive forces and external factors
- 1. STEEPLED influences
- 2. Porter's five forces
- Portfolio analysis techniques
- 1. Developing improvement action plans
- 2. Matrices for positioning and assessment
- Sources of added value through relationships
|
| Topic 4: Approaches to Managing Supplier Relationships | 35% | - Supplier selection and evaluation
- 1. Criteria and methods for selection
- 2. Performance measurement and monitoring
- Relationship management strategies
- 1. Partnership and collaborative approaches
- 2. Contractual and relational governance
- Communication and stakeholder engagement
- 1. Managing internal and external stakeholders
- 2. Effective communication protocols
|
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CIPS Supplier Relationships Sample Questions (Q138-Q143):
NEW QUESTION # 138
Why is it more difficult for buyers in the public sector to build relationships with suppliers?
- A. There are regulations prohibiting public sector buyers from developing relationships
- B. There are regulations that state competitive tender processes must be undertaken regularly
- C. Buyer power is strong in the public sector
- D. Buyer power is weak in the public sector
Answer: B
Explanation:
It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).
NEW QUESTION # 139
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?
- A. No- partnerships have end dates as they are contractual relationships
- B. No- partnerships should have end dates so both parties have a way out if things don't work out
- C. Yes-partnerships do not have end dates because they involve significant investment
- D. Yes- partnerships do not have end dates because there is never a contract involved
Answer: C
Explanation:
The correct answer is 'Yes-partnerships do not have end dates because they involve significant investment'. This is explained on p.126. Partnerships can involve contracts - so the other 'yes' answer is incorrect.
NEW QUESTION # 140
Which of the following factors would you use to analyse the macro-environment? Select THREE.
- A. political
- B. social
- C. cultural
- D. legislative
- E. philosophical
Answer: A,B,D
Explanation:
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44
NEW QUESTION # 141
The main purpose of early supplier involvement (ESI) is:
- A. To ensure that the procurement budget is fully spent as early as possible
- B. To ensure that suppliers can set their pricing strategy as early as possible
- C. To enable the supplier to make proactive suggestions relating to improvements in product or service design
- D. To enable suppliers to receive and raise orders before 10am to relieve administrative burdens
Answer: C
Explanation:
Early Supplier Involvement (ESI) is a strategic procurement approach designed to add value during the early stages of specification, design, or development. CIPS highlights that suppliers often possess specialist technical knowledge, innovation capability, and market insight that buyers may lack.
By involving suppliers early, organisations can:
* Improve product or service design
* Reduce lifecycle costs
* Improve quality and functionality
* Reduce time to market
Options A, B, and D focus on administrative convenience, budget spend, or supplier pricing power, none of which represent the strategic intent of ESI.
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Early Supplier Involvement (ESI) and value creation
* CIPS L4M6 Study Guide - Collaboration and innovation with suppliers
NEW QUESTION # 142
Which of the following macro-environmental factors can affect supply chains?
- A. political, economic and social
- B. environmental, ergonomic and social
- C. social, economic and cost
- D. environmental, ethical and cost
Answer: A
Explanation:
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.
NEW QUESTION # 143
......
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