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CIPS Supplier Relationships Sample Questions (Q216-Q221):

NEW QUESTION # 216
A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?

A. Direct negotiation
B. Competitive tendering
C. Statement of source requirements
D. Request for quotation

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
For high-value and high-risk contracts, such as facilities management services for multiple schools, competitive tenderingis the most appropriate sourcing approach. This process involves inviting multiple suppliers to submit bids, ensuring transparency, fairness, and the opportunity to assess various proposals to select the most suitable supplier. It helps in mitigating risks and achieving value for money.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 217
A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products. What is the reason for the failure of this?

A. Communication overload
B. Poor communication
C. Miscommunication
D. Distortion of the facts

Answer: B

Explanation:
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.

NEW QUESTION # 218
A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?

A. Early engagement with the whole market
B. Review existing suppliers only
C. Pre-define all requirements before approaching the market
D. Cost-based review of the market

Answer: A

Explanation:
Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.

NEW QUESTION # 219
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit. Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?

A. Improving timescales
B. Price management
C. Reduction of inventory
D. Quality enhancement

Answer: B

Explanation:
Price management is crucial for low-cost retailers to maintain profitability. This includes negotiating better pricing, managing costs effectively, and ensuring competitive pricing for volume sales.

NEW QUESTION # 220
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

A. arms length
B. strategic alliance
C. transactional
D. outsource

Answer: B

Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details

NEW QUESTION # 221
......

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L4M6 Reliable Exam Dumps | L4M6 Reliable Test Tips

CIPS L4M6 Reliable Test Tips - L4M6 Exam Sample Questions

CIPS Supplier Relationships Sample Questions (Q216-Q221):

Excellent L4M6 Reliable Exam Dumps & Leading Offer in Qualification Exams & Top L4M6 Reliable Test Tips

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