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CIPS Supplier Relationships Sample Questions (Q32-Q37):
NEW QUESTION # 32
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. 3 and 4 only
- B. 1 and 3 only
- C. 1 and 2 only
- D. 2 and 3 only
Answer: B
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 # 33
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?
- A. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
- B. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them
- C. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival
- D. Competing- the supplier needs to earn more money as they are struggling financially
Answer: C
Explanation:
The correct answer is 'accommodating'. This question is based on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.
NEW QUESTION # 34
Which of the following are considered 'wastes' which can be removed from a business? Select THREE.
- A. Stockout
- B. Equity
- C. Inventory
- D. Over-processing
- E. Transportation
Answer: C,D,E
Explanation:
The seven wastes (as defined by Taiichi Ohno) can be remembered as Tim Wood; transportation, inventory, motion, waiting, over-processing, over-production, defects. Some people add an S onto the end of Tim Wood to make Tim Woods (the s is for skills). In some modules of CIPS, they refer to 8 wastes and include skills, but in M6 they've only put the 7 on p.70.
NEW QUESTION # 35
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
- A. The Intellectual Property Rights of the buyer become yours
- B. They may gain an increased volume of business
- C. They no longer have to try as hard to win business.
- D. There is more flexibility when selling the product
Answer: B
Explanation:
The correct answer is 'They may gain an increased volume of business'. The other options are just not true. See p.130 for advantages and disadvantages of partnerships from both the buyer and supplier's perspective. This is a hot topic for the exam.
NEW QUESTION # 36
A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board of directors. The recommendation is based on a range of advantages including, but not limited to, gaining local market knowledge. Is this a valid recommendation?
- A. Yes, as investment costs can be shared in a partnership
- B. Yes, as intellectual property costs will be lower in a partnership
- C. No, because confidentiality risk will be higher in a partnership
- D. No, local market knowledge is guaranteed in a tender process
Answer: A
Explanation:
Partnerships provide access to local market knowledge, enable shared investments, and mitigate risks associated with relocation. These advantages outweigh concerns that can be managed through strong contracts and confidentiality agreements.
NEW QUESTION # 37
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