CIPS – Supplier Relationships (L4M6) paper 1

As per Charles Handy, which type of organizational culture is characterized by a significant degree of formalization and standardization of authorities, rules, and procedures?

Effective communication between the purchaser and supplier in the partnership ought to be...?

For Company A to incorporate the patented HPP technology owned by Company B into its products and improve their quality, what authorization or agreement must Company A obtain from Company B?

What are the primary factors that shape a supplier's perception of a buyer?

Which of the following can be identified as secondary stakeholders?

In which of the following contracts should the buying organization establish adversarial relationships with suppliers?

CW Ltd is in the market for a new supplier to handle its facilities management contract. It extends invitations to multiple suppliers to submit bids, providing them with Invitation to Tender (ITT) documents. Among the respondents, three suppliers present their quotes along with their quality certificates. While the price discrepancies are marginal, CW's procurement team must weigh several factors to identify the optimal supplier. These factors may include not only pricing but also considerations such as service quality, reliability, previous track record, adherence to deadlines, and flexibility in accommodating CW Ltd's specific needs and preferences. By assessing these multifaceted aspects, the procurement team can make an informed decision in selecting the most suitable supplier for CW Ltd's facilities management contract.

Katton Ltd is in the process of implementing a new computer system, with the majority of their existing computers exceeding five years in age. The IT buyer has been tasked with procuring new computers for all staff, marking one of Katton's significant purchases for the year. With a detailed specification already approved by internal stakeholders, and the procurement department having pinpointed at least three potential suppliers, the question arises: Should Katton Ltd initiate a competitive bidding process?

What factors have the potential to harm the partnership between a buyer and a supplier?

Lene Group wants to launch a Supplier Development Programme (SDP) initiative. This initiative targets small and medium sized suppliers who have potential to grow and work in areas that are important for the Group. Lara’s task is to find out what goals and benefits the Group and the suppliers can achieve from the initiative. What is true about supplier development programme?

When acquiring items with significant profit impact and high supply risk, selecting effective strategies to foster relationships with suppliers is crucial. The two most applicable strategies include:

Company A's top executives are revising their value chain to uphold their low-cost strategy. They believe that each activity within the value chain operates independently, without influencing others. Is this assumption valid?

The Community Housing Agency is managing several housing projects. The project team meets in the conference room to plan for the next big project: the Bradbury Housing. The housing manager says: “I am a major sponsor of this project and I used my own budget to fund it. I want to be involved in choosing the main building contractor from the start.” The project manager and project engineers have agreed with most of the housing manager’s opinions and ideas since the beginning of the project design. How should the stakeholder like the housing manager be managed according to Mendelow’s theory?

BeautyWare (BW) specializes in producing premium hair and beauty products under its own brand. With a vast network of over 1,000 suppliers supplying raw materials, finished products, and services such as advertising, the company is currently grappling with declining margins. A discord arises between the finance and purchasing departments, as the former prioritizes savings, adhering to budgets, and reducing unit costs. Consequently, the purchasing department's actions often diverge from the needs and expectations of other organizational departments and stakeholders. How can the purchasing department effectively employ conflict management styles to address these disagreements with the finance department?

Identify three common attributes of a partnership relationship from the list below.

The overall profitability of a purchasing organization can significantly improve through successful partnership endeavors. Yet, identifying an appropriate partner presents its own set of challenges. What tools can aid in pinpointing the most suitable partner?

Friends Company is in need of a particular type of valves for its product, currently purchasing them from a supplier at $5 per unit. Despite diligent market research revealing no cheaper alternatives, the company possesses sufficient internal capacity to undertake valve production. Before opting for in-house production, what factors should the company carefully weigh? Choose TWO relevant considerations.

Before entering into a new partnership, both parties must believe that they will receive significant benefits in one or more areas and these benefits would not be possible without a partnership. These benefits are called drivers by Douglas M. Lambert. Which of the following are most likely to be the drivers towards partnering relationships?

Procurement plays a key role in an organisation’s strategy, especially for managing prices and costs. How can procurement create value for the organisation? Select TWO that apply.

For a 12-month supply contract of stationaries, what type of relationship is best suited

What are the factors that make an ESI project successful? Select the THREE that apply

Which category of items should the buyer utilize cost modeling for?