L5M6 Category Management – paper 17

Workshops, safety facilities and design engineers are indirect costs associated with which industry?

A large central government department is adopting a category management approach. Resources have been allocated and a project team has been formed to commence the initial work. Differents takeholders have been identified and their respective roles and importance within the project have been assessed. Stakeholder A will be making all of the decisions and is ultimately in charge but will not be completing any of the tasks themselves. Stakeholder B will need to be kept updated on how the project is progressing but has no direct input into decision making. These two stakeholders are best described as which of the following?

When applying Porter's Five Forces tool, which of the following will have the greatest impact on the likelihood of new entrants to the industry?

Customers who are perceived as ‘exploitable’ by suppliers will receive poor quality service. Is this true?

A category manager has identified a number of ‘bottleneck’ suppliers on which the organisation has a high level of critical dependency. They plan to identify alternative sources of supply as a contingency. Is this the right course of action?

Which of the following are steps of AT Kearney’s 7-step model for the adoption of category management?

A list of Direct Costs within a manufacturing organisation could be found on which of the following?

Which of the following plays a fundamental role in establishing categories when developing a category management strategy?

Strategic sourcing is concerned with the alignment of long-term organization-wide goals and objectives. Strategic procurement’s key tools include which of the following?

Price acceptance is the least transparent approach to cost among the given options. In price acceptance, the buyer simply accepts the price quoted by the supplier without much scrutiny or negotiation. There is little transparency into how the supplier arrived at the quoted price or what the underlying costs are. Cost down involves working with suppliers to reduce costs through product redesign, manufacturing process improvements, supply base rationalization etc. This requires a high degree of transparency into supplier operations and cost drivers, Cost out involves identifying and eliminating unnecessary costs in a product or service through target costing, value engineering, lean principles etc. This again requires clear visibility into cost components. Price management leverages markets dynamics and competitive bids to negotiate better pricing through tenders, auctions etc. It enables some transparency into pricing across suppliers. Thus, price acceptance represents a non-transparent, passive approach compared to the other active, collaborative approaches that require supplier engagement and cast visibility. Which of the following approaches to cost is the least transparent?

Dick is a Supply Chain Manager at XYZ Manufacturing, which is based in Botswana. He is completing a risk assessment on a supplier who delivers raw materials from a low-cost country located 10,000 kilometers away. He is using a scale of 1-5 to mark the severity and likelihood of a particular risk in which the supplier fails to deliver the goods on time for a large order. He has noted that this risk is a major risk. Which of the following scores would most likely be attributed to this risk?

To determine the right sourcing business model for an organization’s situation, the stakeholders must answer two important questions. Select the TWO important questions they must answer from the following:

From the items listed below, which of the following options is the earliest stage in establishing a category management approach?

alcolm is using the CIPS Procurement and Supply Cycle to run a tender to find a supplier for a new item of spend within his business. He has decided he needs to do a Make vs. Buy assessment. Under which stage of the CIPS Procurement and Supply Cycle should Malcolm complete this?

Which of the following are key behavioral skills required to implement category management?

Which of the following are legal aspects of a contract with which a Procurement Manager should be familiar? Select THREE.

Dave, a category manager, has been tasked with analyzing the direct costs for his car manufacturing organization. Dave is analyzing the costs of steel components, plastic sub-assemblies, and tyres. Is Dave analyzing the correct types of costs?

Frank is a Category Manager. He acknowledges that he has limited control over the continuing financial condition of suppliers after they have been appointed but wishes to limit damage and risk as much as possible. Which of the following would be the most effective way for Frank to do this? Select TWO.

When completing a tender exercise, as well as price and quality, it may be relevant to look at additional factors relating to a supplier. These factors include environmental performance, ethics, and sustainability. What are these factors commonly known as?

Claire is a Category Manager at a shoe manufacturing organization. She is working with a key supplier of raw materials (leather and rubber) and is employing a cost-out approach to sourcing. Which type of relationship would be most suited to this approach?

Which of the following are economic factors that might have an impact on an organization’s direct and indirect expenditures? Select THREE that apply.

When implementing procurement projects, it is important for Category Managers to consider the ‘human side’ of change. Why is this?

When applying total cost of ownership models, which of the following are relevant disposal costs? Select TWO that apply.

The mitigation of risks which can occur in the supply chain involves the development of contingency planning and risk protocols. In assessing a potential risk, which two factors should be considered?

An effective technology route map will ensure the organization is protected against cybercrime and other high-risk events. Is this correct?

Sue is a Category Manager at an automobile company. Which of the following would be the best way to decide on categories in this industry?