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CIPS Supplier Relationships (L4M6) paper *2.
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1.
Grauchi Ltd is a medium-sized company that manufactures various types of equipment for the civil engineering sector. In recent years, however, its sales have significantly decreased, primarily due to increasing competition from companies in developing nations that benefit from lower labor and material costs. To address this strategic challenge, Grauchi Ltd has proposed the following action plan: What recognized strategy forms the basis of its competitive edge?
1. Maintain market share through innovation and providing excellent technical service to both UK and international clients.
2.Streamline its supply chain to eliminate waste
3.Encourage innovation from its suppliers.
4.Achieve cost parity or close alignment with competitors.
2.
What are the common driving factors for establishing partnership relationships? Choose TWO that are most relevant.
3.
How does procurement directly contribute to an organization’s value creation? Choose TWO relevant actions
4.
Which advantages does the Kraljic supply positioning model offer? Select TWO that apply.
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.
6.
Ngwai LTD., a leading US-based tobacco company, is grappling with several challenges, including government regulations that mandate reduced nicotine levels in cigarettes and a decline in smoking rates among younger generations. Which macro factors influence Ngwai LTD. the most? Choose TWO relevant factors.
7.
What principle underpins ABC (Activity-Based Costing) analysis?
8.
Is it correct to say that only internal suppliers can produce products or services that have a significant impact on profits?
9.
How can procurement processes help an organization achieve value for money?
10.
In preparation for a key negotiation with its primary supplier, BAH Ltd. is developing cost models. To enhance the precision of these models, what strategies should BAH Ltd. employ?
1. Create a business continuity plan
2. Assemble a cross-functional team
3. Develop a BATNA (Best Alternative to Negotiated Agreement)
4. Gather multiple data points on supplier costs
11.
What is the clearest sign of a high-trust relationship between two parties?
12.
When considering RC Inc.'s situation, where increasing material costs are a concern, what actions should the procurement function prioritize?
13.
What strategies can a buyer use to improve supplier selection that aligns with their needs?
1. Use Pareto analysis
2. Issue a pre-qualification questionnaire
3. Send out requests for information (RFIs)
4. Apply Mendelow's matrix
14.
What are the key elements that contribute to the formation of high-performance teams?
15.
According to Mendelow’s matrix, what insights should procurement practitioners gain about their stakeholders? Choose TWO relevant factors.
16.
What factors improve a buyer’s appeal to a supplier?
1. The buyer has a strong brand
2. The buyer demands longer credit terms
3. The buyer enforces a strict code of conduct
4. The buyer is highly bureaucratic
17.
Which legislative act safeguards employee rights in relation to transferring services? Procurement should be aware of this when considering internalizing a service.
18.
Toyota has a supplier development program that focuses on nurturing its promising suppliers, such as Gemba Ltd., which produces subsystems. In order to ensure the success of this partnership, the agreement between Toyota and Gemba should contain provisions that promote collaboration. What should this agreement include?
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.
19.
In the relationship cycle, at what stage is a Request for Information (RFI) typically used?
20.
According to the Thomas-Kilmann model, is the competing style always the best conflict management approac
21.
What strategies can procurement professionals use to gain support from senior leadership and other departments for partnership sourcing? Choose THREE relevant approaches.
22.
As a senior buyer at a mobile manufacturing company, Paul faces an issue with a key supplier. Despite the supplier's importance, there are few alternatives in the market. What should Paul do in this situation?
