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| Section | Objectives |
|---|---|
| Supplier Segmentation and Categorisation | - Kraljic matrix and portfolio analysis - Supplier classification criteria - Strategic, tactical, and transactional suppliers |
| Developing Supplier Relationships | - Partnership models and collaboration approaches - Trust and commitment in supplier partnerships - Relationship lifecycle stages - Supplier relationship management (SRM) frameworks |
| Supplier Risk and Resilience | - Risk identification and assessment - Supplier vulnerability analysis - Business continuity planning - Risk mitigation strategies |
| Ending and Reconfiguring Supplier Relationships | - Supplier base rationalisation - Exit strategies and transition planning - Contract termination processes - Managing relationship dissolution professionally |
| Managing Supplier Performance | - Performance measurement tools and techniques - Scorecards and supplier audits - Continuous improvement processes - Key Performance Indicators (KPIs) |
| Supply Chain Context | - Stakeholder relationships in procurement - Understanding the supply chain environment - Supplier market analysis |
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NEW QUESTION # 111
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?
Answer: D
Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'. These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75
NEW QUESTION # 112
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 # 113
A company's analysis shows that some of their products from a supplier fall into the 'strategic' segment of the supply positioning grid. They are meeting with the supplier with the intention that they enter into a partnership. The supplier views the company as 'core' to their business. Which one of the following factors would be most important in determining that a partnership agreement would be good for both companies?
Answer: C
Explanation:
For partnerships to succeed, both buyer and supplier must see significant value in the relationship. High spend indicates strategic importance, ensuring mutual commitment. If the buyer is a core customer for the supplier, and has a high spend, partnership sourcing is mutually beneficial.
NEW QUESTION # 114
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?
Answer: D
Explanation:
The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.
NEW QUESTION # 115
Which of the following are NOT one of the four key principles of procurement in the EU?
Answer: C
Explanation:
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75
NEW QUESTION # 116
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