Ace Your CIPS L4M6 Exam With Web-based Practice Tests

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CIPS Supplier Relationships Sample Questions (Q98-Q103):

NEW QUESTION # 98
Which of the following are examples of ways in which businesses can add value? Select THREE that apply.

Answer: A,B,F

Explanation:
Adding value involves enhancing customer experience through excellent service, providing differentiated product features, and offering convenience. These align with procurement strategies aimed at driving customer satisfaction and loyalty.


NEW QUESTION # 99
Price fluctuations can affect profitability. Is this statement correct?

Answer: C

Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.


NEW QUESTION # 100
Which of the following characteristics are typical of a partnership approach relationship between a buyer and supplier?
* Win:Lose (distributive) style negotiations
* Joint key performance indicator (KPI) measurement
* Definitive contract end period
* Transparent information sharing

Answer: C

Explanation:
Partnerships are characterized by joint performance measurement (e.g., shared KPIs) and transparent information sharing to build trust and alignment. Win:lose negotiations and rigid end periods are more associated with adversarial or transactional relationships.


NEW QUESTION # 101
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn't think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?

Answer: C

Explanation:
Richie should do a Force Field Analysis - this is explained on p.86 and is an idea of Kurt Lewin - it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn't go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin's Force Field Analysis.


NEW QUESTION # 102
Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have made investments in the supplier's factory to support them with capital equipment upgrades in return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets when looking to supply doughnuts and work together on quality improvements. No contracts exist between the two companies. Could this relationship be said to be a partnership relationship?

Answer: D

Explanation:
The relationship qualifies as a partnership due to their collaboration, shared investments, and mutual efforts toward improvement, regardless of the absence of formal contracts. Partnerships focus on shared goals, trust, and strategic alignment rather than mere documentation.


NEW QUESTION # 103
......

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