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Download CIPS Supplier Relationships Exam Dumps

NEW QUESTION 49
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

  • A. You discover that the supplier has a high profit margin
  • B. It will allow for consolidation in the supply chain
  • C. The buyer wishes to create a new product and requires input from a supplier
  • D. Sudden changes in the marketplace

Answer: D

Explanation:
The correct answer is 'Sudden changes in the marketplace' - this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163

 

NEW QUESTION 50
Rachel and Jacky work in the procurement department of Foddy Foods Ltd. They have been told by their CEO to build better relationships with strategic suppliers as this will create value for money for the company. In what ways can value for money be achieved by building strong relationships with suppliers? Select TWO.

  • A. Innovation developed as part of collaborative projects
  • B. Reduction of waste
  • C. Reducing costs
  • D. Better payment terms

Answer: A,B

Explanation:
Supplier relationships can result in value for money in the reduction of waste and in innovation developed as part of collaborative projects. Remember that in CIPS waste doesn't necessarily mean physical waste (as in stuff you don't want any more). There are 7 types of waste including waiting, inventory, transportation etc. So when you develop a relationship with a supplier, this can reduce waste (e.g. you may be able to get deliveries quicker by integrating your ordering system with the supplier's, or you might reduce transportation by agreeing a Consignment stock). Having a good relationship with a supplier isn't necessarily going to get you a reduction in cost or better payment terms. See p.70 for more details on this- there's a short list of ways in which good supplier relationships can bring value for money to a business.

 

NEW QUESTION 51
Which of the following are NOT one of the four key principles of procurement in the EU?

  • A. Non-Discrimination
  • B. Value for Money
  • C. Proportionality
  • D. Transparency

Answer: B

Explanation:
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75

 

NEW QUESTION 52
In which procurement process is a PQQ not issued?

  • A. Open
  • B. Restricted
  • C. Competitive Procedure with Negotiation
  • D. Competitive Dialogue

Answer: A

Explanation:
Open Tender processes are a one-stage process which issues and ITT. It has no PQQ (selection) stage. P. 77

 

NEW QUESTION 53
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?

  • A. No- as this was not the lollypop sticks intended purpose
  • B. Yes- so long as the manager kept the receipt
  • C. Yes- the lollypop sticks have gone mouldy- this is unacceptable
  • D. No- the manager cannot prove that the product is faulty

Answer: A

Explanation:
The correct answer is 'no- as this was not the lollypop sticks intended purpose'. When deciding if something is fit for purpose, you must consider its intended and common purpose. In this case it would be for making lollypops. As the garden centre is using them for something other than their intended purpose, they can't complain if it doesn't work. Fit for purpose is discussed on p.65 p.s. there's a Question: like this in the real exam - it's just not lollypop sticks ; )

 

NEW QUESTION 54
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