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Download CIPS Supplier Relationships Exam Dumps

NEW QUESTION 28
'tail spend' is a common category used in procurement and describes a category of items. What characteristics do theses items have?

• A. High value, high volume
• B. Low value, high volume
• C. Low value, low volume
• D. High value, low volume

Answer: B

Explanation:
Tail spend items are low value, high volume. P. 132

NEW QUESTION 29
What is a disadvantage of including qualitative KPIs into a contract?

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

Answer: D

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

NEW QUESTION 30
Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?

• A. Yes- partnership sourcing will improve sales figures
• B. No- Andrew should outsource the vanilla extract.
• C. Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer
• D. No- Andrew should use an alternative supplier

Answer: C

Explanation:
The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this Question: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern - it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam

NEW QUESTION 31
Which of the following are possible drivers for partnership sourcing? Select THREE.

• A. The marketplace has become more volatile
• B. Working together will create synergies
• C. The protection of intellectual property rights
• D. The need to improve performance to satisfy the end customer

Answer: A,B,D

Explanation:
To increase production costs and lead-times
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.

NEW QUESTION 32
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