CIPS L4M6 Exam Practice Test Instant Access

Question 1

[Relationship approaches and the sourcing process]

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

AGreater levels of transparency

BIncreased supplier contractual terms

CSpecifications designed by the buyer

DShared cost benefits

Answer : A, D

Question 2

[Relationship approaches and the sourcing process]

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

Aeconomies of scale

Baccess to capital

Clicences and permits

Dhealth and safety

Eethical sourcing

Answer : A, B, C

Question 3

[Relationship approaches and the sourcing process]

At what stage of the relationship cycle could you use Carter's 10 Cs?

Aon-boarding

Bqualification

Csegmentation and risk management

Ddevelopment and innovation

Answer : B

Question 4

[Relationship approaches and the sourcing process]

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

AThe buyer has a high spend with the supplier

BThere are many suppliers in the market

CThe product is critical for the buyer

DThe product is a commodity

EThe product is technically complex

FThe supplier provides the product to a buyer's competitor

Answer : A, C, E

Question 5

[Relationship approaches and the sourcing process]

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?

ALow levels of profitability

BHigh barriers to entry

CStrong governmental regulation

DThe product is easy to source elsewhere

Answer : D

Question 6

[Relationship approaches and the sourcing process]

Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

Ayes- it is important to develop all relationships

Byes- this will improve efficiencies for the buyer

Cno- supplier development should only be done with strategic suppliers

Dno- supplier development should only be done with tactical suppliers

Answer : C

Question 7

[Relationship approaches and the sourcing process]

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

Acategory management

Bcost analysis

Crisk management

Dcost reduction

Answer : A

CIPS L4M6 Supplier Relationships Exam Practice Test