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CIPS Supplier Relationships Sample Questions (Q156-Q161):

NEW QUESTION # 156
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy's first step?

Answer: B

Explanation:
The correct answer is 'run a restricted competition - send out a PQQ'. This Question: tests both your understanding of when to run open and restricted competitions (which is explained on p.75) and your understanding of tender documents. Mandy should run a restricted competition- there are a lot of options in the marketplace and this will allow her to pre-qualify those who best suit her requirements. Running an open competition when there are lots of suppliers would be too time-consuming- you need a way of making a short-list. When you run a restricted competition, the first stage is sending out a PQQ- pre-qualification questionnaire; this document is sent to suppliers asking for necessary information to support their qualification as an approved supplier.


NEW QUESTION # 157
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.

Answer: A,C,F

Explanation:
Comprehensive and Detailed Explanation:
Partnerships between buyers and suppliers are often driven by:
* High Spend:Significant expenditure justifies the investment in developing a closer relationship to achieve cost savings and efficiencies.
* Critical Products:Items that are essential to the buyer's operations necessitate a reliable and collaborative supplier relationship.
* Technical Complexity:Complex products benefit from joint development efforts, shared expertise, and coordinated problem-solving.
Conversely, commodities and markets with many suppliers typically lend themselves to transactional relationships rather than partnerships.
Reference:
CIPS L4M6 Study Guide


NEW QUESTION # 158
The main purpose of early supplier involvement (ESI) is:

Answer: C

Explanation:
Early Supplier Involvement (ESI) is a strategic procurement approach designed to add value during the early stages of specification, design, or development. CIPS highlights that suppliers often possess specialist technical knowledge, innovation capability, and market insight that buyers may lack.
By involving suppliers early, organisations can:
* Improve product or service design
* Reduce lifecycle costs
* Improve quality and functionality
* Reduce time to market
Options A, B, and D focus on administrative convenience, budget spend, or supplier pricing power, none of which represent the strategic intent of ESI.
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Early Supplier Involvement (ESI) and value creation
* CIPS L4M6 Study Guide - Collaboration and innovation with suppliers


NEW QUESTION # 159
Which of the following behaviours are you likely to see in a Partnership relationship?

Answer: D

Explanation:
The correct answer is 'Strong levels of trust and honest communication'. The questions on Partnership in the exam tend to be quite straightforward, but if you're struggling with this see p. 148 for further details of behaviour in Partnerships.


NEW QUESTION # 160
Which of the following is not a stage in the relationship life-cycle?

Answer: C

Explanation:
Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification, segmentation and risk management, performance management, development and innovation, phase out. P.13


NEW QUESTION # 161
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