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L4M6 Valid Braindumps Pdf & L4M6 Valid Test Vce

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CIPS Supplier Relationships Sample Questions (Q125-Q130):

NEW QUESTION # 125
A company purchases products from a supplier that falls into the 'strategic' segment of the supply positioning grid. They are drawing up a formal partnership agreement with the supplier. The supplier views the company as core to their business. What would be an important clause to include in the agreement to help make sure the partnership worked in a fully collaborative way?

A. Liquidated damages
B. Time of the essence
C. Force majeure
D. Continuous improvement

Answer: D

Explanation:
Comprehensive and Detailed Explanation:
In strategic partnerships, including a continuous improvement clause is vital. This clause commits both parties to ongoing efforts to enhance processes, reduce costs, and improve quality over time. Such a commitment ensures that the partnership remains dynamic and responsive to changes, fostering long-term collaboration and mutual benefit.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 126
The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modelling activity. This will be undertaken with a cross-organisational team of internal stakeholders and key strategic suppliers. What would be the buyer's initial objective from the cost modelling activity?

A. To understand the supplier's competitive threats
B. To understand the supplier's financial status
C. To understand the supplier's investment plans
D. To understand the supplier's pricing strategy

Answer: D

Explanation:
The primary objective of cost modelling is to dissect and comprehend the components that constitute a supplier's pricing. By understanding the supplier's pricing strategy, the buyer can identify cost drivers, negotiate more effectively, and seek opportunities for cost savings. This approach aligns with the CIPS L4M6 guidelines, emphasizing the importance of transparency and collaboration in supplier relationships.

NEW QUESTION # 127
In a partnership who is responsible for decision making?

A. Both the supplier and the buyer
B. The project steering committee
C. The buyer
D. The supplier

Answer: A

Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152

NEW QUESTION # 128
Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

A. Non-critical
B. Strategic
C. Leverage
D. Bottleneck

Answer: D

Explanation:
Comprehensive and Detailed Explanation:
In the Kraljic Matrix, a 'Bottleneck' item is characterized by low financial impact but high supply risk. These items may be sourced from a limited number of suppliers or involve complex logistics, making them susceptible to supply disruptions. Managing bottleneck items requires strategies focused on risk mitigation, such as developing alternative suppliers or holding strategic stock reserves.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 129
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

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

Answer: C

Explanation:
Comprehensive and Detailed Explanation:
Early Supplier Involvement (ESI) refers to the practice of involving suppliers early in the product development process to leverage their expertise and capabilities. Cross-organisational involvement entails collaboration across various departments within the organization, such as procurement, engineering, manufacturing, and R&D, to ensure the product design is feasible and efficient for production.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 130
......

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Hugh Gray Hugh Gray

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