CIPS Supplier Relationships (L4M6) paper *2 Leave a Comment / By Admin / May 7, 2024 Before you begin ✍️ You are about to practice the questions set for CIPS Supplier Relationships (L4M6) paper *2. Please put away any distractions and focus all your efforts on passing. ⏱️Time limit: 1 hour 30 minutes At the end of your examination practice, you will 📝 View your grade ✅ View the correct answers NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification. To begin your exam practice, wait a few seconds for the start button to appear, then tap the START button. "We're rooting for you all the way!" All the best. 😃 1. XYZ Ltd produces various equipment for the civil engineering industry as a medium-sized engineering company. However, its sales have dropped in the past five years due to competition from companies in developing countries that can offer lower prices with cheaper labour and materials. To deal with this strategic challenge, XYZ has suggested the following action plan:What recongised approach is the souce of its competitive advantage? 1.Keep its market share by innovating and offering excellent technical service to its UK and international customers2.Eliminate waste from its supply chain3.Foster innovation from its suppliers4.Achieve cost parity or proximity with its competitors Niche market Cost leadership Cost focus Differentiation None 2. Which factors typically drive the formation of partnership relationships? Choose TWO that are relevant. Geographically close proximity Ensuring security of supply Similar management philosophy Access to the new market Compatible corporate cultures 3. In what ways does procurement directly enhance an organization's value creation? Choose TWO options that are relevant. Maintaining relationships with distribution channels and consumers Selecting appropriate suppliers and managing their costs Managing quality of input Adopting tactical ploys when negotiating with strategic supplier Sourcing from low-cost suppliers who exploit child labour 4. Which of the following are the benefits of using the Kraljic supply positioning model? Select TWO that apply. It helps to identify the optimum relationship for each supplier Including all external risks Better understanding of products' importance It helps to understand the supplier's perspective Anticipating the future changes 5. To get more benefits from their existing relationship, Company A and Company B plan to use some relationship-based KPIs in addition to the conventional KPIs. What are the characteristics of relationship-based key performance indicators? Select TWO that apply. Affecting the performance outcomes More qualitative measures Measuring delivery outcomes Applicable to transactional relationships More quantitative measures 6. GS Ltd., a prominent tobacco company in the US, faces significant challenges due to recent regulatory changes and shifting societal attitudes toward smoking. With the government imposing stringent regulations to reduce nicotine levels in cigarettes and younger generations increasingly abandoning the habit due to heightened health awareness, GS is primarily influenced by which macro factors? Choose TWO options that are relevant. Technological Legislative Social Economic Environmental 7. What fundamental principle guides ABC analysis? Trivial few, significant many Significant few, trivial many Selected few, trivial many Trivial few, selected many None 8. Is it accurate to assert that only internal suppliers can produce products or services that significantly impact profits? No, since high-value products also face high risk of supply shortage Yes, since producing a product or service internally is always less costly Yes, since high value products or services are essential for any company’s core business No, since external suppliers who are very skilled may save more money None 9. How can procurement procedures and processes aid an organization in attaining value for money by...? Prioritising branded products or services Mandating user departments to do purchase strategic items Fostering competition among potential suppliers Eliminating all financial thresholds None 10. In anticipation of a critical negotiation with its primary supplier, BAH Ltd intends to develop cost models. Recognizing the inherent challenge in crafting precise cost models, how can BAH Ltd improve the accuracy of its cost modeling process? 1. Make a business continuity plan2. Form a cross-organisational team3. Create the best alternative to negotiated agreement4. Use multiple data points on supplier's costs 2 and 3 only 2 and 4 only 3 and 4 only 1 and 3 only None 11. How can we identify the strongest signal of a high-trust bond between two parties? Both parties perform joint innovation activities Each party compromises on their demands One party wins at the expense of the other One party yields to the demand of the other None 12. Given RC Inc's situation, the procurement function should prioritize assessing the escalating material costs for the branded electrical, gas, and water equipment. This involves conducting a comprehensive analysis to understand the factors driving the cost increases. By pinpointing the root causes, RC Inc can explore strategies such as renegotiating contracts, seeking alternative suppliers, or implementing cost-saving measures to mitigate the impact on margins. Addressing this concern promptly will enable RC Inc to maintain its profitability amidst rising production demands. Target at more affluent customers and reward customers' loyalty Review whether any current inputs could be substituted by non-branded alternatives Switch to conformance specification to encourage supplier's innovation Terminate the contracts with current suppliers immediately None 13. What strategies can a buyer employ to refine the selection of suppliers that align with their requirements? 1. Use Pareto analysis2. Use pre-qualification questionnaire3. Use request for information4. Use Mendelow's matrix 2 and 3 only 2 and 4 only 3 and 4 only 1 and 4 only None 14. What key elements contribute to the formation of high-performance teams? Flattering the team leader Criticising every minor errors of other team members Intensifying the competition among team members Creating a shared sense of purpose None 15. In accordance with Mendelow's framework, what specific insights should procurement practitioners gather about their stakeholders? Choose TWO options below. Supply risk Creativity The level of interest The ability to influence The level of assertiveness 16. What attributes enhance a buyer's attractiveness to a supplier? 1. The buyer has a leading brand2. The buyer insists on longer credit terms3. The buyer exercises a stringent code of conduct4. The buyer is very bureaucratic in working with the supplier 1 and 2 only 4 and 3 only 2 and 4 only 1 and 3 only None 17. What is the legislative name safeguarding workers' employment rights, which procurement should take into account when proposing to internalize a service? NDA TUPE SLA GDPR None 18. Toyota operates a supplier development initiative designed to nurture its most promising vendors, with Gemba Ltd standing out as a key supplier, producing subsystems for Toyota. With a strong interest in fostering a robust partnership, Toyota's procurement team aims to engage in comprehensive collaboration with Gemba. To facilitate this collaboration effectively, the agreement between Toyota and Gemba should include clauses that promote mutual cooperation and alignment. These provisions may include clear communication channels, joint problem-solving mechanisms, shared goals and objectives, performance metrics and benchmarks, continuous improvement initiatives, confidentiality agreements to protect proprietary information, and dispute resolution mechanisms to resolve any conflicts amicably. By incorporating these clauses into the agreement, Toyota and Gemba can establish a solid foundation for their collaborative efforts, ensuring mutual success and long-term growth in their partnership. Ultra vires Continous improvement Just in time A business case None 19. Typically, when in the relationship cycle is the request for information commonly employed? Performance management Segmentation and risk management Phase out Qualification None 20. According to the Thomas-Kilmann model, the competing style is the best conflict management style in every situation. Is this statement true? Yes, because it requires a party to refrain from their demands No, because compromising style is always the best approach No, because it won't fully satisfy the concerns of both parties in long-term relationship Yes, because it benefits both parties in a conflict None 21. What strategies can procurement professionals employ to garner backing from senior leadership and other departments for partnership sourcing? Choose THREE approaches from the following options. Finding out the level interest and influence of the concerned stakeholders Embedding force majeure into contracts Conducting a competitive tendering Creating corporate social responsibility policies Handling the changes in the organisation Presenting the business case to senior management 22. In his role as a senior buyer at a mobile manufacturing company, Eric encounters a challenge with a supplier crucial to the company's operations. Despite the importance of the supplier's delivery of a key component, the supply market offers limited alternatives. What course of action should Eric pursue in this scenario? Tell the procurement team to amend KPI targets to become more achievable Request the supplier for a reduction of price Ask the supplier to provide a hospitality package Schedule a review session with the supplier None Your comment matters to us😊. Please share your experience. Please proceed to view your grade. Fingers crossed🤗 Time's upTime is Up!
