NEW L4M6 TEST OBJECTIVES & L4M6 REAL TESTING ENVIRONMENT

New L4M6 Test Objectives & L4M6 Real Testing Environment

New L4M6 Test Objectives & L4M6 Real Testing Environment

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CIPS Supplier Relationships Sample Questions (Q170-Q175):

NEW QUESTION # 170
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

  • A. outsource
  • B. arms length
  • C. transactional
  • D. strategic alliance

Answer: D

Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier.
There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details


NEW QUESTION # 171
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.

  • A. Emphasis on the lowest price
  • B. Emphasis on short-term relationship
  • C. Emphasis on long-term relationship
  • D. Emphasis on quality with zero defects
  • E. Emphasis on inspection of incoming supplies

Answer: C,D

Explanation:
Partnerships emphasize mutual goals such as quality improvement and long-term collaboration, contrasting with adversarial relationships that focus on cost and short-term gains.


NEW QUESTION # 172
In public sector procurement, according to EU legislation, certain items must be procured via open- competition. What type of items are these?

  • A. Items that are imported from outside the EU
  • B. Items of high value
  • C. Items of strategic importance
  • D. Items that are produced by lots of suppliers

Answer: B

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 # 173
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn't hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?

  • A. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
  • B. Manage them closely- they're key players in this procurement activity
  • C. Minimal effort is required as they do not hold a lot of power in the business.
  • D. Keep them satisfied- they will be wearing the uniform so need to be happy with it

Answer: A

Explanation:
The housekeeping team have low power and high interest. According to Mendelow's stakeholder matrix, this puts them in the bottom right corner which is 'keep informed'. See p.81 for more information


NEW QUESTION # 174
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?

  • A. This allows staff to focus on other areas
  • B. The supplier will not perform as well as an internal team
  • C. There is dependency on the supplier, which increases risk
  • D. This will be more expensive than providing the service in house

Answer: C

Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'


NEW QUESTION # 175
......

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