Which of the following are NOT one of the four key principles of procurement in the EU?
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?
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.
The use of technical jargon can result in what?
A partnership relationship in portfolio analysis is appropriate for which category of procurement?
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?
Which of the following are not stages of team development? Select TWO.
Kirsty is designing a specification for a new contract and wants to include some qualitive KPIs for the new supplier, as well as quantitative. Which of the following could she include? Select TWO.
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?
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?
A buyer is procuring a high-value specialist piece of medical equipment to use in the healthcare sector from a market that consists of minimal competition. The buyer has decided to use an open tender procedure to purchase the equipment. Is this an appropriate method to use?
Which of the following is a stage in the relationship lifecycle?
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?
Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE
A comprehensive approach to managing the termination of a contractual relationship would include ...
A large construction group has a critical contract with a brick supplier. This represents high-value spend and the contract has a five-year duration. What type of commercial relationship would be the most appropriate?
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?
Mendelow’s Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?
Significant differences in corporate cultures can lead to the failure of a partnership relationship between two organisations. Is this statement correct?
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?
Which of the following are possible drivers for partnership sourcing? Select THREE.
Which of the following are considered value-adding primary activities?
Inbound logistics
Firm infrastructure
Technology development
Marketing and sales
Which of the following are valid strategies for dealing with conflict? Select THREE
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
Which circumstances make a buyer more attractive to the supplier?
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?
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?
A company's analysis shows that some of their products from a supplier fall into the 'strategic' segment of the supply positioning grid. They are meeting with the supplier with the intention that they enter into a partnership. The supplier views the company as 'core' to their business. Which one of the following factors would be most important in determining that a partnership agreement would be good for both companies?
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?
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
Negative leaders
Silent opponents
Supporters
Promoters
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?
An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?
The Pareto Principle is sometimes also known as what?
Which of the following would be the most likely driver for a manufacturing organisation to consider partnership sourcing?
Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?
A large office orders weekly from a stationery supplier. The items are low cost and if the delivery is a day late it does not affect the running of the office. Where would this supplier be positioned in a supplier matrix?
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.
The director of procurement for a global telecommunications firm has segmented their expenditure and has decided to focus on developing relationships with their bottleneck suppliers. Is this the correct process?
What is the correct order of the stages of team development?
Harry has just entered into a partnership with a key supplier. Although he is excited about the prospect, he thinks it’s a good idea to set some goals and KPIs. Which of the following criteria should Harry use to decide if a KPI is appropriate?
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?
A confectionery company has a portfolio of different items to sell. Their most popular product is the chocolate brownie cake, but they have begun to trial sales of cereal bars, granola cereal, and chewing gum. As a high-quality producer in a competitive market, the company requires effective supplier sourcing arrangements. Which ONE of the following product lines would be the most suitable for partnership sourcing?
Which of the following are Intellectual Property Rights that you would you encounter in procurement and supply contracts? Select THREE.
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?
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?
In the 1990s, a manufacturer of portable music players partnered with a mini-disk producer. The aim of the partnership was to reduce the size and cost of the devices and enhance flexibility. Sales of the product after launch were low due to a competitive launch of small digital players, which offered better flexibility to customers at a comparable price. The partners suffered substantial loss and never recovered the investment. In order to mitigate the risk described, what should both partners have considered before investing in the product? Select the TWO that apply.
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
Which of the following are relationship types on the relationship spectrum?
Adversarial, transactional and outsourcing
Single sourced, strategic alliance and co-destiny
Arm's length, strategic alliance and dual sourced
Closer tactical, leverage and joint ventures
A supplier wishes to develop a new blood collection system for healthcare but needs to work with a clinical expert to develop the device. Why would a partnership be the best approach?
In the STEEPLED framework, which of the following is an economic factor?
How would a buyer measure value for money from a relationship with a new supplier for goods?
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?
A buyer should concentrate their efforts on managing the start and onboarding stage of a supplier relationship by ...
Keeping all information and plans confidential from the supplier
Pre-qualifying and assessing the supplier's capability
Focusing solely on the buying organisation's goals
Building a positive and trusting relationship
Price fluctuations can affect profitability. Is this statement correct?
The purpose of supplier pre-qualification is to identify suppliers that have the financial stability to assist in continuous supply. Is this statement TRUE?
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
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?
Value for money in the private sector is concerned with what?
When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
Which of the following macro-environmental factors can affect supply chains?
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
What are service credits?
Can a cost leadership strategy be described as 'no frills'?
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?
Why is it more difficult for buyers in the public sector to build relationships with suppliers?
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?
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.
What is a valid reason for terminating a commercial relationship?
Kyle Grant 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?
A procurement category manager has been asked to advise the project team on the appropriate selection and awarding process for a complex procurement project in a multi-geographical organisation. It is likely the specification will be updated during the process, and several phases of negotiation will be required throughout. This will include final negotiations with the winning bidder. The team are therefore aware it will be a time-consuming project. Which process should be advised?
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.