Which of the following is not a stage in the relationship life-cycle?

Which of the following would you use to qualify new suppliers? Select THREE.

A law firm is ending an agreement with a client they have represented for many years. What is the most important legal consideration to be taken before terminating?

Victoria runs a hotel and has recently had several security issues such as attempted robberies. She has decided that she needs to hire a security firm to ensure these issues don’t continue. She has done some research and has found there are several local security firms who may be able to provide services to her hotel. However, she hasn’t decided exactly what she would require the security firm to do. What should be Victoria’s next steps?

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

Which of the following are primary activities, according to Porter's Value Chain? Select THREE.

When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?

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?

Expensive and technically complicated supplies generally carry high financial risk, but low supply risk for the buyer. Is this statement correct?

A comprehensive approach to managing the termination of a contractual relationship would include ...

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardized. Is this TRUE or FALSE?

An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?

Where the potential pool of alternative suppliers is small

Where the buyer has to continue working with the supplier during the termination period

Where the buyer has adopted an arm's-length relationship throughout the contract

Where a material breach of the contract has been committed leading to the termination

Marcus is an account manager for a company that sells maintenance spares for air conditioning units. He has a customer who persistently pays late, is very demanding in terms of constant requests, and the profit margin on the account is minimal. If Marcus were to use a supplier preferencing model to map this customer, what category would he place them into?

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

Which of the following statements explains the ‘relationship spectrum’ concept in supply chains?

In the 1990s a company spent a lot of time and money developing a device that you could carry around that could play CDs. The product spent a long time in development but when it was released the sales figures were very disappointing. This was in part due to the fact another product was released at a similar time which had much more developed technology and could play music without the cumbersome size of a portable CD player. Which of the following did the company not consider when developing the product?

A partnership between a software development company and a software supplier has recently been created. In order for the partnership to be successful, what is a critical action to take in the early stages of their relationship?

Achieving value for money can often be described as the three Es? What are these?

If a stakeholder has high power in a business but isn’t interested in your procurement activity, what should be your management style for dealing with this stakeholder?

Which of the following are advantages for the buyer of early supplier involvement with the buyer's product development team?

Which of the following behaviours are you likely to see in a Partnership relationship?

Which of the following statements are true regarding the characteristics of a restricted market? Select TWO that apply.

The marketplace is heavily regulated by Governments and legislation

Existing suppliers within the marketplace offer excellent services

There are many suppliers already in operation within the marketplace

High financial investment is required to enter the marketplace

Effective cost modelling involves which of the following?

Data gathering

Analysis of facts

Supplier negotiation

Issuing a request for quotation

Which stage of team development is usual at the outset of working with stakeholders?

Laura is working with suppliers on the design of a component for a new boiler. One of the current suppliers suggested manufacturing the component from plastic they recently developed and patented, rather than commonly used brass. What competitive force is this supplier creating in the market to affect competition?

Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier, for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent pricing increase. What is this tactic known as?

In the public sector, there are many sources of information that a buyer can use to identify a suitable supplier. Which of the following could be used? Select THREE

Which of the following are considered value-adding primary activities?

Inbound logistics

Firm infrastructure

Technology development

Marketing and sales

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?

Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?

Significant differences in corporate cultures can lead to the failure of a partnership relationship between two organisations. Is this statement correct?

Can a cost leadership strategy be described as 'no frills'?

One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:

Which of the following are elements of a business that can develop a company's competitive advantage? Select THREE.

Security company ARLA has recently won a new contract for guarding a school. Another company, ENA, has previously been providing the contract and employed the current guard who has worked at the school for 5 years. What key legal issue needs to be considered when the current relationship is terminated and the new company takes over?

An IT company is developing and launching a new product to the market. The project requires experts from different divisions of the business. What type of team should run this project?

A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.

Agile Cars Ltd is creating a ‘lean’ business model which involves receiving deliveries of components only when they are required. Which of the following ‘wastes’ is being removed from the business?

Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive ‘value for money’. Which of the following should Jenny consider when drafting her ITT?

In a monopoly market, which of the following statements is true?

Danny Bloomfield is a procurement manager and is using the STEEPLED analysis framework to review what macro factors could affect his project. Which of the following is an example of a socio-cultural (social) factor?

National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?

Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?

Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny’s next step?

Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender. What purpose would this serve?

Which of the following are advantages of partnering?

According to the STEEPLED analysis framework, what considerations are likely to be evaluated under the ‘political’ factor?

Consumerism in the supply chains

Grants and subsidies to the supply chains

Civil unrest and war in the supply chains

Wage rates in the supply chains

A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers. What would be the most beneficial way for them to initially narrow down the supply options?

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

An automotive company has hired Tom as the procurement manager. Tom is to manage a team of two people who have worked in the department for a number of years. Conflict exists between the two members of staff due to an overlap of responsibilities. Which of the following processes would be most appropriate for Tom to use to reduce this conflict?

The Kraljic Model is most useful for which aspect of procurement?

Kyle Crant 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?

Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.

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 textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers. Which commercial relationship type would be most effective for the buyer to choose?

A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?

What is a valid reason for terminating a commercial relationship?

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?

Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to ‘Contract Frustration’. What could be the reason for this?

A competitive advantage can be gained by doing what?

According to Michael Porter, what is procurement?

When is partnering a particularly suitable approach to sourcing?

When using portfolio analysis, in which segment would you place a product with high expenditure, potentially provided by a large number of suppliers?

A university is working with a software company to develop a new research software package. What consideration would be particularly important before terminating the relationship?

A hospital awarded a contract to an IT consultancy to build and maintain their payroll and patient information systems. After a successful implementation, problems started to appear, with poor maintenance and accuracy of information, and slow response times from the supplier. After repeated problems, the decision to terminate the contract was agreed. Which of the following would be the priority legal concern for the hospital?

Rivalry between suppliers is more likely to be intense in which of the following situations?

Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.

The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

In the Purchasing Portfolio Matrix, a bottleneck product is one which is purchased in a small quantity but has the potential to halt production at a factory. Is this TRUE or FALSE?

The main purpose of early supplier involvement (ESI) is:

Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew’s cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier’s product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier’s performance. Is this the correct thing to do?

Which of the following is a characteristic of a traditional contracting agreement?

The purpose of supplier pre-qualification is to identify suppliers that have the financial stability to assist in continuous supply. Is this statement TRUE?

A team within a manufacturing company have been tasked to develop a new product for production. Initially, the team had a lot of ideas but disagreed on the design. They have now agreed and finalised the design and have assigned roles within the team, but are yet to complete the first production run. What stage of development is the team?

Which of the following would be the most likely driver for a manufacturing organisation to consider partnership sourcing?

Ranjit Singh is carrying out a procurement exercise for medical gases and has been advised that this is a restricted marketplace. A marketplace may be restricted for which of the following reasons?

The marketplace is heavily regulated by governments and legislation

Existing suppliers within the marketplace offer excellent services

There are many suppliers already in operation within the marketplace

High financial investment is required to enter the marketplace

Pablo has run an open- competition to secure a new contract for a supplier of paper for his Birthday Card making company. He has received 10 submissions from various suppliers and needs to put a team together to evaluate the bids. What type of team should Pablo consider?

Which of the following are typical examples of partnering between companies? Select the TWO that apply.