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CIPS Supplier Relationships Sample Questions (Q117-Q122):
NEW QUESTION # 117
Which of the following are advantages of partnering?
- A. Continual improvement
- B. Prioritization of transactions
- C. Hard to displace
- D. Supply chain consolidation
Answer: A,D
Explanation:
Partnering supports supply chain consolidation and continual improvement by fostering collaboration and shared objectives. These benefits align with the strategic goals of building resilient and efficient supply chains.
NEW QUESTION # 118
Which of the following are typical examples of partnering between companies? Select the TWO that apply.
- A. Limited company
- B. Sole trader
- C. Strategic alliance
- D. Joint venture
- E. Public limited company
Answer: C,D
Explanation:
Joint ventures and strategic alliances are examples of partnerships as they involve collaboration between entities to achieve shared objectives. Sole traders and public limited companies describe organizational structures, not partnership types.
NEW QUESTION # 119
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Marketing and Sales
- B. Inbound Logistics
- C. Procurement
- D. Operations
- E. Human Resources
Answer: A,B,D
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 # 120
Which of the following factors are considered when using the Kraljic Model to determine the kind of supply relationships and sourcing approaches for a category of items? Select TWO that apply.
- A. Supplier pre-qualification
- B. The type of tendering
- C. Key performance indicators
- D. The market structure
- E. The level of spend
Answer: D,E
Explanation:
Comprehensive and Detailed Explanation:
The Kraljic Matrix is a strategic tool used to segment the supply base and develop differentiated purchasing strategies based on two key dimensions:
* Profit Impact (Level of Spend):This refers to the financial significance of the item or service to the organization. High expenditure items have a greater impact on profitability and thus require more strategic sourcing approaches.
* Supply Risk (Market Structure):This pertains to the complexity and dynamics of the supply market, including factors like the number of suppliers, market competitiveness, and potential for supply disruptions. Understanding the market structure helps in assessing the risk associated with sourcing particular items.
By analyzing these two factors, organizations can categorize their purchases into four quadrants-non-critical, leverage, bottleneck, and strategic items-and tailor their sourcing strategies accordingly.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 121
Which of the following is not a type of tender process used in the Public Sector?
- A. Unrestricted
- B. Competitive Procedure with Negotiation
- C. Restricted
- D. Competitive Dialogue
Answer: A
Explanation:
Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77
NEW QUESTION # 122
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