CIPS Supplier Relationships - L4M6 Exam Practice Test

Which of the following are advantages of partnering?

The Kraljic Model is most useful for which aspect of procurement?

Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?

A hospital located in a remote area experiences difficulties in attracting staff and regularly uses a staffing agency. Human resourcing is critical due to patient safety risks. The agency has been categorised as a strategic supplier. Which sourcing relationship should be adopted?

The Managing Director of XYZ Ltd has asked the Procurement Manager to support the engineering team and ensure a new product design is suitable for volume manufacturing. The Procurement Manager arranged a series of meetings with suppliers and its internal development team, the XYZ manufacturing department, and research and development department to get their feedback on the proposed design. What are the activities undertaken by XYZ Ltd called?
* Early supplier involvement
* Benchmarking
* Cross-organisational involvement
* Subcontracting

What are service credits?

A university is working with a software company to develop a new research software package. What consideration would be particularly important before terminating the relationship?

Victoria runs a hotel and has recently had several security issues such as attempted robberies. She has decided that she needs to hire a security firm to ensure these issues don't continue. She has done some research and has found there are several local security firms who may be able to provide services to her hotel. However, she hasn't decided exactly what she would require the security firm to do. What should be Victoria's next steps?

Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?

When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?

A hospital awarded a contract to an IT consultancy to build and maintain their payroll and patient information systems. After a successful implementation, problems started to appear, with poor maintenance and accuracy of information, and slow response times from the supplier. After repeated problems, the decision to terminate the contract was agreed. Which of the following would be the priority legal concern for the hospital?

A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?

The main purpose of early supplier involvement (ESI) is:

Danny is procuring a new IT software, which he doesn't know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny's next step?