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CIPS L4M6 Certification is widely recognized by employers and can help procurement professionals to advance their careers and secure more senior roles within their organizations. CIPS Supplier Relationships certification also provides professionals with the skills and knowledge necessary to build and maintain strong relationships with suppliers, which can help to improve the quality and reliability of goods and services provided by suppliers.
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CIPS Supplier Relationships Sample Questions (Q34-Q39):
NEW QUESTION # 34
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce.
Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?
- A. strategic
- B. routine
- C. Bottleneck
- D. leverage
Answer: B
Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)
NEW QUESTION # 35
Red Manufacturing work with around 40 different suppliers. One of these suppliers is Blue Business. Red Manufacturing order regularly from Blue Business, and have never had any issues with their performance.
The materials Blue Business supply are of low value and there are several other suppliers of these materials in the market. What type of relationship should Red Manufacturing seek to have with Blue Manufacturing?
- A. adversarial
- B. arms-length
- C. single-source
- D. partnership
Answer: B
Explanation:
The correct answer is 'arms length'. This is a tactical purchase (as it is low value) and keeping the supplier at arms-length means that Red Manufacturing could possibly exploit them to reduce their prices (think back to the Kraljic matrix and where Blue Business would likely fall). A Partnership or Single- Source relationship requires investment into the relationship, and as the products are low value and Red Manufacturing have a lot of other suppliers, they should not be investing time in developing that relationship with Blue Business. An adversarial relationship wouldn't be advantageous as it may lower the performance of the supplier. See the relationship spectrum on p.5 - this is a hot topic for the exam
NEW QUESTION # 36
Which of the following relationship types are listed on the relationship spectrum?
* Partnership
* Contractual
* Transactional
* Conspiratorial
- A. 2 and 3 only
- B. 2 and 4 only
- C. 1 and 3 only
- D. 1 and 2 only
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:
* Transactional:Short-term, price-focused relationships with minimal collaboration.
* Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.
While "contractual" refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. "Conspiratorial" is not a recognized relationship type in procurement contexts.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 37
In which procurement process is a PQQ not issued?
- A. Restricted
- B. Competitive Procedure with Negotiation
- C. Competitive Dialogue
- D. Open
Answer: D
Explanation:
Open Tender processes are a one-stage process which issues and ITT. It has no PQQ (selection) stage. P. 77
NEW QUESTION # 38
Partnership sourcing is often considered a 'high-risk' strategy for a buyer. Which of the following is not a risk generally associated with partnership sourcing?
- A. Single-sourcing may leave the buyer without a supply if the supplier goes into liquidation
- B. Reduced waste in the supply chain
- C. Sharing commercially sensitive data with another party
- D. Supplier may become complacent
Answer: B
Explanation:
The correct answer is 'Reduced waste in the supply chain' - this is not a risk, this is a benefit P.134
NEW QUESTION # 39
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