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 Cost leadership Differentiation Niche market Cost focus None 2. Which factors typically drive the formation of partnership relationships? Choose TWO that are relevant. Compatible corporate cultures Ensuring security of supply Similar management philosophy Access to the new market Geographically close proximity 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 Sourcing from low-cost suppliers who exploit child labour Selecting appropriate suppliers and managing their costs Adopting tactical ploys when negotiating with strategic supplier Managing quality of input 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 It helps to understand the supplier's perspective Anticipating the future changes Better understanding of products' importance Including all external risks 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. Applicable to transactional relationships More qualitative measures More quantitative measures Measuring delivery outcomes Affecting the performance outcomes 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. Economic Legislative Environmental Technological Social 7. What fundamental principle guides ABC analysis? Trivial few, significant many Trivial few, selected many Significant few, trivial many Selected few, trivial many None 8. Is it accurate to assert that only internal suppliers can produce products or services that significantly impact profits? Yes, since producing a product or service internally is always less costly No, since high-value products also face high risk of supply shortage No, since external suppliers who are very skilled may save more money Yes, since high value products or services are essential for any company’s core business None 9. How can procurement procedures and processes aid an organization in attaining value for money by...? Prioritising branded products or services Fostering competition among potential suppliers Eliminating all financial thresholds Mandating user departments to do purchase strategic items 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 4 only 1 and 3 only 2 and 3 only 3 and 4 only None 11. How can we identify the strongest signal of a high-trust bond between two parties? One party yields to the demand of the other Each party compromises on their demands Both parties perform joint innovation activities One party wins at the expense 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 Switch to conformance specification to encourage supplier's innovation Review whether any current inputs could be substituted by non-branded alternatives 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 4 only 3 and 4 only 2 and 3 only 1 and 4 only None 14. What key elements contribute to the formation of high-performance teams? Creating a shared sense of purpose Flattering the team leader Criticising every minor errors of other team members Intensifying the competition among team members None 15. In accordance with Mendelow's framework, what specific insights should procurement practitioners gather about their stakeholders? Choose TWO options below. The ability to influence The level of interest The level of assertiveness Supply risk Creativity 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 2 and 4 only 4 and 3 only 1 and 2 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 GDPR TUPE SLA 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. Continous improvement Just in time A business case Ultra vires None 19. Typically, when in the relationship cycle is the request for information commonly employed? Segmentation and risk management Performance management Qualification Phase out 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 Yes, because it benefits both parties in a conflict No, because it won't fully satisfy the concerns of both parties in long-term relationship 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. Presenting the business case to senior management Handling the changes in the organisation Finding out the level interest and influence of the concerned stakeholders Creating corporate social responsibility policies Embedding force majeure into contracts Conducting a competitive tendering 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? Ask the supplier to provide a hospitality package Request the supplier for a reduction of price Tell the procurement team to amend KPI targets to become more achievable 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!
