CIPS L4M6 LO3|Understand the concept of partnering 3.1, 3.2 &3.3- Qs & As
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CIPS
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CIPS
CIPS L4M6 LO3|Understand the concept of partnering
3.1, 3.2 &3.3- Qs & As
what are the partnership advantages for the buyer? Correct Ans-- as partnership
relationships are generally long term, the buyer is likely to be able to gain price stability from
the supplier. this will aid in planning...
CIPS L4M6 LO3| Understand the concept of partnering
3.1, 3.2 &3.3- Qs & As
what are the partnership advantages for the buyer? Correct Ans-- as partnership
relationships are generally long term, the buyer is likely to be able to gain price stability from
the supplier. this will aid in planning and financial management
- cost savings may be made as a result of supply base rationalisation and leveraging volume
with the supplier
- there may be greater continuity of supply. if there is a shortage of supplies in the
marketplace a supplier is likely to service its preferred customer first
what are the partnership advantages for the supplier? Correct Ans-- the supplier will gain
certainty of business, for example in terms of both volume and length of business, which will
result in greater stability for the supplier
- it may gain an increased volume of business if the buyer was previously dual-sourcing or
multiple-sourcing its requirements and has now placed all of its volume with one supplier
- it may have increased involvements in initiatives, such as supplier development or early
supplier involvement in new projects, which could result in additional business for the
supplier
what are the joint disadvantages of a partnership? Correct Ans-- if a partnership
relationships breaks down or one partner fails, there could be serious repercussions for the
remaining company due to the level of dependence that the partners have on each other
- partners can become locked into a relationship in which they are incompatible
, CIPS L4M6 LO3| Understand the concept of partnering
3.1, 3.2 &3.3- Qs & As
- there is a risk that confidential information or IPR from the buyer or supplier will be leaked
to the marketplace by the other partner which could seriously affect a companys competitive
advantage
what are the partnership disadvantages for the buyer? Correct Ans-- supplier could
become complacent overtime as it no longer has to compete for the buyers business
- the buyer is locked into a relationship, and as a result is unable to take advantage of
offerings from other suppliers in the marketplace that might have become more competitive,
or have access to newer technologies
what are the partnership disadvantages for the supplier? Correct Ans-- the supplier can
become over-dependent on the buyers business, focusing on the relationship at the expense
of business development with other customers
- CIPS discusses the risk of bad buyer behaviour . this shouldn't occur in a true partnership but
we have to recognise that change and in particular management change might alter the
relationship over time
what is type 1 of partnership? Correct Ans-the organisations recognise each other as
partners and co-ordinate activities and planning on a limited basis. the partnership has a
short-term focus and involves only one function within each organisation. partnerships of this
type are less time intensive to develop
what is type 2 of partnership? Correct Ans-both companies progress beyond co-ordination
of activities to integration. the partnership has a long-term focus and a number of functions
within both companies are involved
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