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Download CIPS Supplier Relationships Exam Dumps

NEW QUESTION 35
'tail spend' is a common category used in procurement and describes a category of items. What characteristics do theses items have?

• A. Low value, low volume
• B. High value, low volume
• C. High value, high volume
• D. Low value, high volume

Answer: D

Explanation:
Tail spend items are low value, high volume. P. 132

NEW QUESTION 36
Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?

• A. Yes- partnership sourcing will improve sales figures
• B. No- Andrew should use an alternative supplier
• C. No- Andrew should outsource the vanilla extract.
• D. Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer

Answer: D

Explanation:
The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this Question: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern - it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam

NEW QUESTION 37
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?

• A. Bottleneck
• B. leverage
• C. routine
• D. strategic

Answer: C

Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)

NEW QUESTION 38
Which of the following are valid strategies for dealing with conflict? Select THREE

• A. Collecting
• B. Compromising
• C. Competing
• D. Contesting
• E. Collaborating

Answer: B,C,E

Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.

NEW QUESTION 39
Which of the following is a valid reason for ending a relationship with a supplier?

• A. force majeur
• B. the supplier delivered one delivery late
• C. the supplier has a new CEO who you don't like
• D. the contract has ended

Answer: D

Explanation:
CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is 'the contract has ended'.

NEW QUESTION 40
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