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CIPS Supplier Relationships Sample Questions (Q209-Q214):

NEW QUESTION # 209
Kyle Grant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?

A. To ensure value for money is achieved
B. To allow procurement to select the lowest price
C. To deliver an agile process
D. To enable a reduction in competition

Answer: A

Explanation:
Obtaining multiple quotations ensures value for money by comparing suppliers based on cost, quality, and other criteria. It promotes competitive pricing and informed decision-making.

NEW QUESTION # 210
The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?

A. It is important to keep the CEO satisfied as he runs the business
B. It is important to keep the CEO informed of all decisions that are made
C. The CEO is a key player- so it is important he is involved early in the process
D. The CEO is a key player- so should be given regular updates on progress

Answer: C

Explanation:
The correct answer is 'The CEO is a key player- so it is important he is involved early in the process'. The CEO has high power and high interest which puts him in the top right-hand corner of Mendelow's Stakeholder Matrix (p.81). CIPS says Key Players should be involved early in the procurement process (p.82).

NEW QUESTION # 211
A competitive advantage can be gained by doing what?

A. Increasing your prices
B. Building better relationships with primary stakeholders
C. Engaging in market research
D. Completing formal tenders for all buying requirements

Answer: B

Explanation:
The correct answer is 'Building better relationships with primary stakeholders'. This is a direct quote from the start of chapter 2.2: 'building better relationships with primary stakeholders such as employees, customers, suppliers and communities could lead to increased shareholder wealth by developing a competitive advantage'. The other three options wouldn't give you a competitive advantage; increasing prices would do the opposite, engaging in market research won't give you a competitive advantage unless you do something with that research such as implement a change to your business, and completing formal tenders for everything would be a waste of time and resources- there's no need to tender for low value, low risk items. See p.80

NEW QUESTION # 212
According to Michael Porter, what is procurement?

A. a primary activity which provides value for money
B. a primary activity which provides a source of competitive activity
C. a support activity which provides a source of competitive advantage
D. a secondary activity which provides value for money

Answer: C

Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development

NEW QUESTION # 213
A partnership approach to a buyer-supplier relationship, as opposed to a traditional adversarial approach, would have which of the following characteristics?

A. Shared cost benefits
B. Specifications designed by the buyer
C. Greater levels of transparency
D. Increased supplier contractual terms

Answer: A,C

Explanation:
Partnerships are built on trust and transparency, with shared benefits such as cost reductions and improved processes. Adversarial relationships, in contrast, focus on price and contractual obligations.

NEW QUESTION # 214
......

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Qualified CIPS L4M6 Dumps - Best Way To Clear The Exam

Real CIPS L4M6 Dumps | Vce L4M6 Test Simulator

CIPS Supplier Relationships Sample Questions (Q209-Q214):

L4M6 Exam Test Guide Online- Unparalleled Real L4M6 Dumps Pass Success

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