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CIPS L4M6 (Supplier Relationship) Questions and Answers Rated A.
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CIPS L4M6 (Supplier Relationship) Questions and Answers Rated A.
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CIPS L4M6 (Supplier Relationship)Questions and Answers Rated A.
What is the aim of the early supplier involvement?
Correct Answer -The aim of the process is to create a superior end product
or a service with a greater value than the buying organization could have
created alone.
What kind of supplier is considered to be suitable for early supplier
involvement?
Correct Answer -Only a supplier that is considered to be strategic and is
located on the right-hand side of the relationship spectrum model would
be involved.
What are benefits of involving suppliers in the ESI programmed?
Correct Answer -- The supplier may be able to bring additional knowledge
and innovation which could result in cost savings.
-The overall quality of the product can be improved.
-Performance can be improved.
-Product development costs can be reduced
-Can further enhance the supplier relationship.
What are disadvantages/risks to involving suppliers in the ESI
programmed?
Correct Answer --There are often issues with communication between the
buyer and supplier as well as issues with managing the relationships.
-If the relationship breaks down there could be issues producing the
product or service in the future.
-Time and resources could be wasted if the wrong supplier is included.
,What are six qualitative KPIs that can be used as common metrics to
measure the buyer and supplier relationships?
Correct Answer --Trust
-Power
-Transparency and Information sharing
-Communication
-Commitment
-Co-operation
What are benefits of looking at common relationship measures and
metrics?
Correct Answer --Improved customer relationships and reputation
-Improvements in quality
-reduced conflict
-lower transaction costs
What is business continuity planning?
Correct Answer -A process that a company uses to develop a plan to
enable it to recover from a disruption in the shortest possible time.
What are the four key stages in a business continuity system?
Correct Answer -Risk identification, Risk assessment, Risk ranking, Risk
management.
What are key areas to review in a business continuity plan?
Correct Answer --Which suppliers are critical
-Are there any single points of failure.
, -Are there any internal dependencies such as IT systems.
What is supply base rationalisation?
Correct Answer -When a buyer reduced the number of suppliers it has for a
product or service. This is normally done as an exercise to cut costs.
Buying from just one supplier will allow the buyer to leverage its spend
What are advantages of risk mitigation and securing continuity?
Correct Answer --Ensures survival of the business
-Minimises financial losses and loss of customers.
-It minimises loss of good reputation
-It supports the process of supplier relationship management.
What are some limitations of risk mitigation?
Correct Answer --Some risks may remain unknown
-Risk management can be costly and resource consuming
What are the most common reasons for termination?
Correct Answer --The contract comes to a natural end
-The contract is re-tendered and another supplier can provide a more
competitive offer.
-The supplier may be undertaking a process of supply base rationalisation
-Material breach
-Sudden price increase
-reputational damage
-contract frustration
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