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| Section | Objectives |
|---|---|
| Managing Supplier Relationships | - Supplier performance management
|
| Partnering and Collaboration | - Supply chain integration
|
| Dynamics of Supplier Relationships | - Nature of buyer-supplier relationships
|
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NEW QUESTION # 11
A buyer is seeking to set up an agreement for one year for the purchase of paper. They complete a tender exercise and supplier X wins the contract, and all other suppliers are told that they will not be needed for the next 12 months. Where would the buyer place supplier X on the relationship spectrum?
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
When a buyer selects a single supplier for a specific period, such as a one-year contract, and excludes other suppliers during this time, this is referred to as asingle sourcedrelationship. This approach is often used to consolidate purchases, achieve economies of scale, and build a more streamlined procurement process for specific goods or services.
Reference:
"Single sourcing involves selecting one supplier for a particular item or service, often for a defined period, to streamline procurement and potentially achieve better terms."- CIPS L4M6 Study Guide
NEW QUESTION # 12
A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?
Answer: A
Explanation:
Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.
NEW QUESTION # 13
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: C
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 # 14
Kyle Crant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over ยฃ10,000. What is the primary aim of this policy?
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
Obtaining multiple quotations for contracts over a certain value ensures that the organization assesses various options, promoting competition and transparency. This practice helps in achieving value for money by comparing different suppliers' offerings.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 15
Which of the following relationship types would you consider using for a Main Contractor on a building construction project, who will be responsible for co-ordinating the activities of other suppliers?
Answer: B
Explanation:
in tiered supply chains, a closer-tactical relationship could be used between a buyer and a supplier who will be responsible for co-ordinating the activities of other suppliers (p.8 of the textbook).
NEW QUESTION # 16
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