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| Section | Weight | Objectives |
|---|---|---|
| Improving Supplier Relationships | 15% | - Sustainability and ethical considerations - Risk management and resilience - Process improvement and value creation |
| Approaches to Managing Supplier Relationships | 35% | - Communication and stakeholder engagement
|
| Conflict and Dispute Resolution | 20% | - Approaches to negotiation and resolution
|
| Dynamics of Relationships in Supply Chains | 30% | - Types of commercial relationships
|
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NEW QUESTION # 48
Which of the following would you use to qualify new suppliers? Select THREE.
Answer: A,C,D
Explanation:
This is based on a real exam question- it's looking to see if you can remember Carter's 10 Cs. These are; cash, cost, consistency, culture, clean, communication, competency, capacity, commitment and control. (p.12 in the text book)
NEW QUESTION # 49
Which of the following activities are likely to be undertaken in Pareto Analysis?
* Focusing on items that will leverage procurement's time in order to add value
* Identifying items into leverage and strategic, thus helping to prioritise procurement activities
* Separating items into critical few and trivial many to determine areas of higher spend
* Helping to determine the buyer's attractiveness to the supplier
Answer: A
Explanation:
Pareto Analysis is based on the 80/20 principle, which CIPS uses to help procurement professionals:
* Identify the small number of items accounting for the majority of spend or value
* Focus effort where it adds the most value
Key activities include:
* Prioritising procurement time and resources (Statement 1 #)
* Separating spend into critical few and trivial many (Statement 3 #)
Statement 2 relates to Kraljic portfolio analysis, and Statement 4 relates to supplier preferencing, not Pareto.
L4M6 Reference:
* Learning Outcome 1: Understand procurement analysis and segmentation tools
* Topic: Pareto (80/20) analysis
* CIPS L4M6 Study Guide - Spend analysis and prioritisation
NEW QUESTION # 50
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 # 51
Which circumstances make a buyer more attractive to the supplier?
Answer: A,D
Explanation:
Buyers with a strong brand profile and adherence to ethical standards attract suppliers, as they provide market prestige and assurance of fair practices. This aligns with CIPS's emphasis on ethical procurement.
NEW QUESTION # 52
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyse its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?
Answer: D
Explanation:
In the context of the IT equipment industry,Technologicalfactors are paramount. The rapid pace of technological advancement influences product development, supply chain processes, and market competitiveness. Utilizing the STEEPLED framework, technological considerations would significantly impact the company's supply chain strategy.
As per the CIPS Intelligence Hub:
"STEEPLED analysis is a strategic planning methodology that can be used across all business functions to discover, evaluate, organise, and track external risk."
- CIPS Intelligence Hub: Using STEEPLED analysis to develop your supply chain
NEW QUESTION # 53
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