Black Friday Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 70special

CIPS L4M6 Supplier Relationships Exam Practice Test

Page: 1 / 18
Total 180 questions

Supplier Relationships Questions and Answers

Testing Engine

  • Product Type: Testing Engine
$37.5  $124.99

PDF Study Guide

  • Product Type: PDF Study Guide
$33  $109.99
Question 1

A competitive advantage can be gained by doing what?

Options:

A.

Increasing your prices

B.

Engaging in market research

C.

Building better relationships with primary stakeholders

D.

Completing formal tenders for all buying requirements

Question 2

Red Manufacturing work with around 40 different suppliers. One of these suppliers is Blue Business. Red Manufacturing order regularly from Blue Business, and have never had any issues with their performance. The materials Blue Business supply are of low value and there are several other suppliers of these materials in the market. What type of relationship should Red Manufacturing seek to have with Blue Manufacturing?

Options:

A.

partnership

B.

single-source

C.

arms-length

D.

adversarial

Question 3

Which of the following are recognised organisational culture types? Select THREE

Options:

A.

Power

B.

Role

C.

Person

D.

Knowledge

E.

Team

Question 4

ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

Options:

A.

outsource

B.

strategic alliance

C.

transactional

D.

arms length

Question 5

Mendelow’s Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?

Options:

A.

Nowadays, Stakeholders fall into more than four categories

B.

The Matrix doesn’t consider the power these stakeholders have

C.

The Matrix doesn’t consider whether the stakeholder is for or against the activity

D.

The categories are hard to remember

Question 6

In a partnership who is responsible for decision making?

Options:

A.

The project steering committee

B.

Both the supplier and the buyer

C.

The buyer

D.

The supplier

Question 7

Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

Options:

A.

yes- it is important to develop all relationships

B.

yes- this will improve efficiencies for the buyer

C.

no- supplier development should only be done with strategic suppliers

D.

no- supplier development should only be done with tactical suppliers

Question 8

Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

Options:

A.

Manufacturing of all bicycle parts

B.

Manufacturing of bells only

C.

Facilities Management

D.

Cleaning

Question 9

Which of the following are not stages of team development? Select TWO.

Options:

A.

Forming

B.

Mourning

C.

Achieving

D.

Adjourning

E.

Accepting

Question 10

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?

Options:

A.

leverage

B.

strategic

C.

routine

D.

Bottleneck

Question 11

David is sourcing a new cleaning contract as he is not impressed with his current cleaning company’s performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method. Is this the correct way forward?

Options:

A.

Yes- an e-auction is an electronic system so it will be easy for David to compare bids

B.

Yes- an e-auction will allow David to secure the lowest possible price

C.

No- a reverse e-auction would be more suitable as it will secure the lowest price

D.

No- a reverse e-auction will ensure only high quality suppliers bid for the opportunity

Question 12

Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to ‘Contract Frustration’. What could be the reason for this?

Options:

A.

The supplier has committed a material breach

B.

An unexpected incident has occurred beyond anyone’s control

C.

The supplier has become insolvent

D.

The supplier has leaked confidential information about Real Pirates Ltd to a competitor

Question 13

A ‘synergy’ within a partnership can lead to what?

Options:

A.

Poor performance

B.

Increased costs

C.

Miscommunications

D.

Greater creativity

Question 14

In which procurement process is a PQQ not issued?

Options:

A.

Open

B.

Restricted

C.

Competitive Procedure with Negotiation

D.

Competitive Dialogue

Question 15

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?

Options:

A.

Sharing commercially sensitive data with another party

B.

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

C.

Reduced waste in the supply chain

D.

Supplier may become complacent

Question 16

What is value mapping?

Options:

A.

Analysing the costs that go into making a product

B.

Creating value through the elimination of waste and operational inefficiencies

C.

Segmenting suppliers based on the value they bring to the company

D.

Make vs Buy decision

Question 17

Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco’s goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?

Options:

A.

Do frequent appraisals on the supplier

B.

Conduct regular audits

C.

Ensure there is a damages clause in the contract

D.

Threaten the supplier with termination if he underperforms

Question 18

Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?

Options:

A.

Obtain business approval to terminate the contract

B.

Develop an exit strategy

C.

Review the market and look for an alternative supplier

D.

Give written notice to the supplier of plans to terminate

Question 19

Which of the following is not a type of tender process used in the Public Sector?

Options:

A.

Restricted

B.

Competitive Procedure with Negotiation

C.

Competitive Dialogue

D.

Unrestricted

Question 20

The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?

Options:

A.

It is important to keep the CEO informed of all decisions that are made

B.

It is important to keep the CEO satisfied as he runs the business

C.

The CEO is a key player- so it is important he is involved early in the process

D.

The CEO is a key player- so should be given regular updates on progress

Question 21

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

Options:

A.

the supplier delivered one delivery late

B.

force majeur

C.

the contract has ended

D.

the supplier has a new CEO who you don't like

Question 22

Togo Bongos is a manufacturer of percussion instruments, in particular of bongo drums. It requires electricity to run its factories and this is a major factor of cost impact. There are lots of suppliers of electricity in the market and there is no switching costs if Togo Bongos wanted to switch suppliers. What type of supplier is Togo Bongo's electricity supplier?

Options:

A.

strategic

B.

leverage

C.

routine

D.

bottleneck

Question 23

Which of the following would you use to qualify new suppliers? Select THREE.

Options:

A.

competency

B.

cash

C.

culture

D.

cooperation

E.

coordination

Question 24

Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.

Options:

A.

place

B.

quality

C.

cost

D.

focus

E.

time

Question 25

Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy’s first step?

Options:

A.

Run an open competition – send out an ITT

B.

Run a restricted competition – send out a PQQ

C.

Run an open competition – send out a RFQ

D.

Run a restricted competition- send out a RFI

Question 26

A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded. Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose. Can the Manager do this?

Options:

A.

Yes- the lollypop sticks have gone mouldy- this is unacceptable

B.

Yes- so long as the manager kept the receipt

C.

No- as this was not the lollypop sticks intended purpose

D.

No- the manager cannot prove that the product is faulty

Question 27

Harry has just entered into a partnership with a key supplier. Although he is excited about the prospect, he thinks it’s a good idea to set some goals and KPIs. Which of the following criteria should Harry use to decide if a KPI is appropriate?

Options:

A.

Measurable, achievable and relevant

B.

Relatable, precise, and measurable

C.

Time bound, difficult and relevant

D.

Significant, measurable and achievable

Question 28

Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

Options:

A.

cost leadership

B.

differentiation

C.

cost focus

D.

differentiation focus

Question 29

When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?

Options:

A.

ITT

B.

PCR 2015

C.

OJEU

D.

TUPE

Question 30

Which of the following is characteristic of an adversarial relationship?

Options:

A.

The communication is always poor

B.

The price is more important than the quality of the product

C.

They are only used for one-off purchases

D.

The outcome of the deal is more important than the long term relationship

Question 31

If a stakeholder has high power in a business but isn’t interested in your procurement activity, what should be your management style for dealing with this stakeholder?

Options:

A.

Keep them satisfied – they have high power

B.

Keep them informed – they have high power

C.

Manage closely – they’re a key player

D.

Minimum effort is required as they’re not interested- do nothing

Question 32

In public sector procurement, tenders are advertised with CPV codes, which provide a reference to describe the product or service being tendered. What does CPV stand for?

Options:

A.

Condensed Procurement Vocabulary

B.

Common Procurement Vocabulary

C.

Complete Procurement Vocabulary

D.

Clear Procurement Vocabulary

Question 33

Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?

Options:

A.

Equality

B.

Environment

C.

Equity

D.

Ethics

Question 34

Which of the following relationship types require the most investment from the buyer?

Options:

A.

partnership

B.

strategic alliance

C.

single source

D.

adversarial

Question 35

Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

Options:

A.

No- partnerships should have end dates so both parties have a way out if things don’t work out

B.

No- partnerships have end dates as they are contractual relationships

C.

Yes-partnerships do not have end dates because they involve significant investment

D.

Yes- partnerships do not have end dates because there is never a contract involved

Question 36

You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

Options:

A.

threat of substitution

B.

threat of new entrant

C.

supplier power

D.

buyer power

Page: 1 / 18
Total 180 questions