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Online CIPS L4M6 Web-based Practice Test

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CIPS Supplier Relationships Sample Questions (Q87-Q92):

NEW QUESTION # 87
What is collaborative inertia?

A. Where a third party is invited to join a partnership.
B. When a partnership is unable to create new ideas
C. A situation when the apparent output from collaboration is considerably less than expected
D. the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts

Answer: C

Explanation:
The correct answer is 'A situation when the apparent output from collaboration is considerably less than expected'. This is verbatim the definition given in the study guide on p.166 A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

NEW QUESTION # 88
A medical consumables buyer has adopted a close relationship approach with their suppliers that are considered to be complicated, technical suppliers. Is this the right approach?

A. Yes, as all the items supplied are off the shelf
B. No, as there is often a supply risk with items offered
C. Yes, as the items are of high financial risk
D. No, as there are only a small number of suppliers in the marketplace

Answer: C

Explanation:
Complex and technical suppliers often involve high financial risks due to the critical nature of their products.
A close relationship ensures better collaboration, risk management, and value generation.

NEW QUESTION # 89
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?

A. This will be more expensive than providing the service in house
B. There is dependency on the supplier, which increases risk
C. The supplier will not perform as well as an internal team
D. This allows staff to focus on other areas

Answer: B

Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'

NEW QUESTION # 90
Stephen Jones is assessing the relationships he has with his supplier base. Which of the following would be drivers for Stephen to adopt a partnership relationship with a supplier?

A. 1 and 2 only
B. 2 and 3 only
C. 2 and 4 only
D. 1 and 4 only

Answer: C

Explanation:
High expenditure levels and the complexity of requirements justify partnership sourcing, as it allows for collaborative problem-solving, innovation, and cost-efficiency. CIPS emphasizes that partnerships are ideal when requirements are complex and require expertise from the supplier.

NEW QUESTION # 91
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for re-sale with a very small profit margin applied, relying on volume salesto make 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. Price management
B. Quality enhancement
C. Reduction of inventory
D. Improving timescales

Answer: A

Explanation:
For low-cost, high-volume business models, maintaining profitability depends on tightly controlled procurement costs. Price management is critical for ensuring competitive pricing while safeguarding slim margins. CIPS L4M6 highlights that effective cost management and price negotiation are essential in such scenarios.

NEW QUESTION # 92
......

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Matt Fisher Matt Fisher

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