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NEW QUESTION 45
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. strategic
- C. leverage
- D. routine
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 46
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?
- A. Minimum effort is required as they're not interested- do nothing
- B. Manage closely - they're a key player
- C. Keep them satisfied - they have high power
- D. Keep them informed - they have high power
The correct answer is 'keep satisfied' because the stakeholder is high power and low interest. This is the top left corner of Mendelow's Stakeholder Matrix - see p.81
NEW QUESTION 47
Under what circumstances should a competitive tender not be completed? Select TWO.
- A. When there is not a clear specification
- B. When there is a clear specifications
- C. When the items are of low value
- D. When the items are of high value
Note the word 'NOT' in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it's time consuming to do, so you wouldn't do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn't a clear specification'. There's a useful table on p.73 of when you would and wouldn't use a competitive tender.
NEW QUESTION 48
Value for money in the private sector is concerned with what?
- A. Getting the best price possible
- B. Shareholder profit and business benefit
- C. Ensuring taxpayers' money is spent wisely
- D. Getting the best quality possible
Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers' money is spent wisely. Value for money is a mixture of price and quality.
NEW QUESTION 49
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