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100% Pass Quiz 2023 CIPS L4M6: CIPS Supplier Relationships – Professional Latest Study Notes

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Download CIPS Supplier Relationships Exam Dumps

NEW QUESTION 26
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?

• A. Strong governmental regulation
• B. The product is easy to source elsewhere
• C. High barriers to entry
• D. Low levels of profitability

Answer: B

Explanation:
The correct answer is 'The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.

NEW QUESTION 27
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.

• A. Supplier KPIs
• B. Early supplier involvement
• C. No tender process
• D. No defined end period
• E. Lower costs

Answer: B,C,D

Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5

NEW QUESTION 28
George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?

• A. Evaluate the bids on price only as this is an important factor
• B. Only invite suppliers he knows will be able to provide good quality products which won't break
• C. Run a separate tender for a company who can provide reactive maintenance to the solar panels
• D. Use a weighted award criteria

Answer: D

Explanation:
George should use a weighted award criteria - this will allow him to judge suppliers not only on cost, but also on the quality of their products and whether or not they can provide maintenance. For example George could weight the bids in this way; 40% cost, 30% durability of the panels and 30% maintenance costs. For more information on how weighted award criteria works see p.78

NEW QUESTION 29
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