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  • Exam Name: Supplier Relationships
  • Last Update: 29-May-2024
  • Questions and Answers: 120
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L4M6 Questions and Answers

Question # 1

Partnership sourcing is often considered a ‘high-risk’ strategy for a buyer. Which of the following is not a risk generally associated with partnership sourcing?


Sharing commercially sensitive data with another party


Single-sourcing may leave the buyer without a supply if the supplier goes into liquidation


Reduced waste in the supply chain


Supplier may become complacent

Question # 2

What is value mapping?


Analysing the costs that go into making a product


Creating value through the elimination of waste and operational inefficiencies


Segmenting suppliers based on the value they bring to the company


Make vs Buy decision

Question # 3

Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?


Hold an open competition


Contact current suppliers to try and get a good deal


Invite known suppliers to bid for the contract


Put together a business case to make the product in-house

Question # 4

Which of the following behaviours are you likely to see in a Partnership relationship?


Opportunistic behaviour and strong levels of trust


Strong levels of trust and honest communication


Honest communication and opportunistic behaviour


Secrecy and honest communication

Question # 5

Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn’t need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?


Yes – the contract has now expired so she must do a new competitive tender


Yes- competitive tender is the only option to procure uniforms


No- the contract is not of significant value


No- Debbie should continue using the same supplier- it doesn’t matter that the contract has expired.

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