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L4M6 Exam Dumps : Supplier Relationships

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Supplier Relationships Questions and Answers

Question 1

The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modelling activity. This will be undertaken with a cross-organisational team of internal stakeholders and key strategic suppliers. What would be the buyer's initial objective from the cost modelling activity?

Options:

A.

To understand the supplier's investment plans

B.

To understand the supplier's financial status

C.

To understand the supplier's pricing strategy

D.

To understand the supplier's competitive threats

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Question 2

George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?

Options:

A.

Use a weighted award criteria

B.

Only invite suppliers he knows will be able to provide good quality products which won’t break

C.

Run a separate tender for a company who can provide reactive maintenance to the solar panels

D.

Evaluate the bids on price only as this is an important factor

Question 3

A buyer is seeking to set up an agreement for one year for the purchase of paper. They complete a tender exercise and supplier X wins the contract, and all other suppliers are told that they will not be needed for the next 12 months. Where would the buyer place supplier X on the relationship spectrum?

Options:

A.

Arms length

B.

Single sourced

C.

Partnership

D.

Transactional