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NEW QUESTION 35
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?

• A. Give written notice to the supplier of plans to terminate
• B. Develop an exit strategy
• C. Obtain business approval to terminate the contract
• D. Review the market and look for an alternative supplier

Answer: C

Explanation:
The first step is to obtain business approval to terminate. If Senior Management don't give approval, then the rest of the stages can't happen and Sandra will be stuck with her current banana supplier. There's a good diagram on p.109 detailing the steps to supplier termination.

NEW QUESTION 36
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE

• A. Liquidity Ratio
• B. Gearing Ratio
• C. Risk Assessments
• D. Method Statements
• E. Full pricing information

Answer: C,D,E

Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76

NEW QUESTION 37
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender. What purpose would this serve?

• A. To ensure more suppliers bid for the tender
• B. To ensure suppliers know the deadline for tender submission
• C. To ensure only qualified suppliers bid for the tender
• D. To ensure suppliers can find the opportunity

Answer: D

Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.

NEW QUESTION 38
The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

• A. cost engineering
• B. cost analysis
• C. supplier positioning
• D. relationship spectrum

Answer: C

Explanation:
ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this

NEW QUESTION 39
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