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NEW QUESTION 44
Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?

• A. ITT
• B. Framework
• C. Audit
• D. Contract

Answer: C

Explanation:
Tim should do an audit. P.71 of the textbook says "to ensure that a procurement department is achieving value for money, an audit should be undertaken"

NEW QUESTION 45
What is a disadvantage of including qualitative KPIs into a contract?

• A. They can lead to poor supplier performance
• B. They pull focus from the more important quantitative KPIs
• C. They are hard to measure
• D. They make the buyer seem weak

Answer: C

Explanation:
The correct answer is 'They are hard to measure' p.103

NEW QUESTION 46
A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products. What is the reason for the failure of this?

• A. Poor communication
• B. Distortion of the facts
• C. Miscommunication
• D. Communication overload

Answer: A

Explanation:
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.

NEW QUESTION 47
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?

• A. Reduced waste in the supply chain
• B. Single-sourcing may leave the buyer without a supply if the supplier goes into liquidation
• C. Sharing commercially sensitive data with another party
• D. Supplier may become complacent

Answer: A

Explanation:
The correct answer is 'Reduced waste in the supply chain' - this is not a risk, this is a benefit P.134

NEW QUESTION 48
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