L5M6 Category Management – paper 13

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 analysing the direct costs for his car manufacturing organisation. Dave is analysing the costs of steel components, plastic sub-assemblies, and tyres. Is Dave analysing 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 organisation. 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 relationships would be most suited to this approach?

Which of the following are economic factors that might have an impact on an organisation’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 is 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 organisation is protected against cybercrime and other high-risk events. Is this correct?

For Category Management to be a success, it is important to have business commitment and stakeholder buy-in. Is this TRUE?

Supply chain mapping is a useful tool for category managers to identify which of the following? Select THREE that apply.

Which of the following are key activities during the ‘kick off’ phase when implementing a category management approach from the CIPS category management model?

George works for an international manufacturing organisation. Some of the Categories at this organisation are outsourced. Which of the following are likely to be outsourced? Select THREE

Zelensky Ltd is an international retailer of soft toys for children. Within its Supply Function, it has developed a virtual cross-functional team composed of technical experts and procurement professionals from different divisions of the company. Which of the following could become a barrier to the team's success?

The ‘cost of goods sold’ within a supplier’s financial statements show the supplier’s direct costs of producing finished goods. Is this correct?

Which of the following is not one of Cialdini's Principles of persuasion?

Angela is the Lead Negotiator for her Category. She is renewing a contract with an existing supplier and her negotiation technique is based on being passionate and creating a shared sense of purpose. Which of the following negotiation styles does she employ?

The process of designing a product with a trusted supplier in order to eliminate costs that may appear at the delivery stage, is known as which of the following cost management strategies?

A new category head (CH) has recently joined Health Care International (HCI), a large private healthcare organisation. The category management concept is new to the organisation and a number of important stakeholders have yet to fully embrace it. The CH has identified the stakeholders and has analysed their involvements and needs. They have so far had meetings with the two most important stakeholders. They first introduced themselves and immediately said to the CH “I'm interested in what you're going to tell me, but just so you know, I am the budget holder and ultimately I decide what happens”. The second stakeholder was less forceful saying “It’s good to meet you. I'm interested in hearing all about it and discovering what we can do to help each other”. These two stakeholders used different influencing techniques. Identify the two techniques.

Standard Industry Classification (SIC) codes are sets of four-digit codes widely used around the world used to classify what?

Which of the following industries is the only one that doesn't have a specific SIC Code?

Lisa is a procurement manager for Summer & Sons, which is developing its procurement team to be a category management focused team. It has been identified that a key area that needs improving for Summer & Sons is its supplier relationship management process as currently suppliers are only contacted by procurement when new sourcing requirements arise or when internal stakeholders request procurement’s support in rectifying a quality issue. Esther is planning to use a Pareto analysis to initially segment Summer & Sons’ spend. How will this help her to develop a supplier relationship strategy?

Which category of spend item would be most suitable to purchase through an e-auction?

ABC Ltd wishes to ensure compliance across its supply chain. Which of the following are steps that can be taken to ensure compliance with regulations and standards including CRS? Select TWO