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CIPS Supplier Relationships Sample Questions (Q75-Q80):

NEW QUESTION # 75
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

A. The product is undifferentiated
B. There is potential for backward integration
C. The product is highly differentiated
D. The volume purchased is not important
E. The switching costs are high
F. There are few substitute products

Answer: C,E,F

Explanation:
Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.

NEW QUESTION # 76
A comprehensive approach to managing the termination of a contractual relationship would include ...

A. Setting aside the value of existing work done by both parties
B. Attacking the personalities, not the problem
C. Giving qualitative feedback only
D. Setting remedies and compensation for contractual breaches

Answer: D

Explanation:
Effective termination includes remedies and compensation to address any contractual breaches, ensuring fairness and compliance with legal and ethical obligations.

NEW QUESTION # 77
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?

A. False, the product is in a supply market which is highly complex and the product is of low importance
B. False, the product is in a supply market which is highly complex and the product is of high importance
C. True, the product is in a supply market which is of low complexity and the product is of high importance
D. True, the product is in a supply market which is of low complexity and the product is of low importance

Answer: C

Explanation:
Leverage products are characterized by high spend and low complexity, giving buyers the ability to negotiate favorable terms due to supplier competition and standardization.

NEW QUESTION # 78
Value for money in the private sector is concerned with what?

A. Getting the best quality possible
B. Shareholder profit and business benefit
C. Ensuring taxpayers' money is spent wisely
D. Getting the best price possible

Answer: B

Explanation:
Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers' money is spent wisely. Value for money is a mixture of price and quality.

NEW QUESTION # 79
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

A. no- supplier development should only be done with tactical suppliers
B. yes- this will improve efficiencies for the buyer
C. no- supplier development should only be done with strategic suppliers
D. yes- it is important to develop all relationships

Answer: C

Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14

NEW QUESTION # 80
......

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L4M6 Actual Dump, Exam L4M6 Tests

Exam L4M6 Tests & Certification L4M6 Exam Dumps

CIPS Supplier Relationships Sample Questions (Q75-Q80):

Latest CIPS Supplier Relationships dump pdf & L4M6 vce dump

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