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A procurement manager has established a project steering committee to undertake regular reviews and audits, and to ensure a successful buyer/supplier long-term partnership. The committee membership will comprise the procurement manager (chairperson), three of their cross-functional colleagues, the supplier's partnership project manager, and an independent member. Which of the following is a potential disadvantage of the proposed committee structure?

Options:

The committee includes an independent member

The supplier does not have equal membership in the committee

The size of the committee is too large as there should be a limit of three members

The procurement manager should not be the chairperson of the committee

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Question 2

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?

Options:

Competing- the supplier needs to earn more money as they are struggling financially

Avoiding- the supplier should avoid talking with the buyer as this may result in conflict

Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival

Accepting – the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them

Question 3

The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?

Options:

Yes- the Public Sector is regulated by EU procurement regulations which prohibits this

Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market

No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity

No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.

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