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| Section | Objectives |
|---|---|
| Supply Chain Context | - Understanding the supply chain environment - Supplier market analysis - Stakeholder relationships in procurement |
| Developing Supplier Relationships | - Trust and commitment in supplier partnerships - Relationship lifecycle stages - Supplier relationship management (SRM) frameworks - Partnership models and collaboration approaches |
| Supplier Segmentation and Categorisation | - Strategic, tactical, and transactional suppliers - Kraljic matrix and portfolio analysis - Supplier classification criteria |
| Managing Supplier Performance | - Performance measurement tools and techniques - Key Performance Indicators (KPIs) - Scorecards and supplier audits - Continuous improvement processes |
| Ending and Reconfiguring Supplier Relationships | - Contract termination processes - Supplier base rationalisation - Exit strategies and transition planning - Managing relationship dissolution professionally |
| Supplier Risk and Resilience | - Supplier vulnerability analysis - Risk mitigation strategies - Business continuity planning - Risk identification and assessment |
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NEW QUESTION # 110
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
Answer: A,C,E
Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service
NEW QUESTION # 111
Which of the following is characteristic of an adversarial relationship?
Answer: A
Explanation:
In an adversarial relationship "the outcome of the deal... is more important than maintaining the relationship over a long-term period" p.7. They can be characterised by poor communication and can be used for one-off purchases but be careful for words in answers such as 'only' and 'always', as these can be misleading; adversarial relationships aren't always for one-off purchases, and communication isn't always poor. The other answer is incorrect (price is more important) because it doesn't describe the relationship, which is what the question asked.
NEW QUESTION # 112
Expensive and technically complicated supplies generally carry high financial risk, but low supply risk for the buyer. Is this statement correct?
Answer: B
Explanation:
In CIPS L4M6, supply risk is analysed alongside financial risk. Expensive and technically complex items are frequently bespoke or highly specialised, meaning that:
* There are few alternative suppliers
* Switching suppliers is difficult, costly, or impossible
This significantly increases supply risk, not reduces it. While financial risk is high due to value and complexity, supply risk is also high due to dependency and limited market availability.
The incorrect options misunderstand supply risk:
* Single sourcing increases supply risk
* Easy switching is rarely possible for complex supplies
* High-value complex items never carry low combined risk
L4M6 Reference:
* Learning Outcome 2: Understand supply chain risk and resilience
* Topic: Financial risk vs supply risk
* CIPS L4M6 Study Guide - Risk positioning and Kraljic portfolio thinking
NEW QUESTION # 113
What is value mapping?
Answer: A
Explanation:
The definition of value mapping is given on p.69 this is; 'a process in which value is created through the elimination of waste and operational inefficiencies'. It ties into JIT / Lean.
NEW QUESTION # 114
A procurement manager has established a project steering committee to undertake regular reviews and audits, and to ensure a successful buyer/supplier long-term partnership. The committee membership will comprise the procurement manager (chairperson), three of their cross-functional colleagues, the supplier's partnership project manager, and an independent member. Which of the following is a potential disadvantage of the proposed committee structure?
Answer: A
Explanation:
Effective partnership governance requires balanced representation from both buyer and supplier. If the supplier has fewer members than the buyer, decision-making power becomes unequal, potentially undermining collaboration.
NEW QUESTION # 115
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