L4M6 Simulated Test: CIPS Supplier Relationships - Valid CIPS Preparation L4M6 Store

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CIPS Supplier Relationships Sample Questions (Q159-Q164):

NEW QUESTION # 159
In public sector procurement, according to EU legislation, certain items must be procured via open- competition. What type of items are these?

A. Items that are imported from outside the EU
B. Items that are produced by lots of suppliers
C. Items of high value
D. Items of strategic importance

Answer: C

Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'.
These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75

NEW QUESTION # 160
Value for money is often described at the 'three Es'; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?

A. Ethics
B. Environment
C. Equity
D. Equality

Answer: C

Explanation:
Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es

NEW QUESTION # 161
Which one of the following would constitute a succession issue when terminating a relationship?

A. Continuity of supplies
B. Payment of old invoices
C. Deletion of old specifications
D. Processing penalties

Answer: A

Explanation:
Ensuring continuity of supplies is critical during termination to avoid disruptions. Succession issues focus on maintaining essential operations while transitioning to new suppliers or arrangements.

NEW QUESTION # 162
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?

A. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
B. Competing- the supplier needs to earn more money as they are struggling financially
C. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival
D. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them

Answer: C

Explanation:
The correct answer is 'accommodating'. This Question: is based
on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.

NEW QUESTION # 163
The Kraljic Model is most useful for which aspect of procurement?

A. category management
B. cost analysis
C. cost reduction
D. risk management

Answer: A

Explanation:
The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.

NEW QUESTION # 164
......

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