CIPS Supplier Relationships - L4M6 Exam Practice Test

Question 1

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?

A. Adversarial

B. Closer tactical

C. Outsourcing

D. Partnership

Correct Answer: A

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Question 2

A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyse its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?

A. Ethical

B. Technological

C. Sociocultural

D. Economic

Correct Answer: B

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Question 3

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?

A. Issue an Invitation to Tender

B. Issue a Prior Information Notice

C. Issue a Request for Proposal

D. Issue a Request for Quotation

Correct Answer: C

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Question 4

Which one of the following is an advantage of early supplier involvement?

A. Supplier is responsible for all intellectual property risks

B. No need for supplier non-disclosure agreements

C. Large investment in supplier communications

D. Understanding of supplier capabilities

Correct Answer: D

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Question 5

A competitive advantage can be gained by doing what?

A. Building better relationships with primary stakeholders

B. Completing formal tenders for all buying requirements

C. Increasing your prices

D. Engaging in market research

Correct Answer: A

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Question 6

Value for money in the private sector is concerned with what?

A. Getting the best price possible

B. Getting the best quality possible

C. Shareholder profit and business benefit

D. Ensuring taxpayers' money is spent wisely

Correct Answer: C

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Question 7

A company is about to invite tenders for a contract to clean external windows at several premises, all at least three storeys high. It is going to do this in two stages. For the first stage, it will issue a pre-qualification questionnaire (PQQ) and, from the replies, select at least five potential suppliers to invite to tender. Which of the following is a selection criterion rather than an award criterion?

A. Method statements for previous contracts

B. Price that will be charged

C. Environmental impact assessment

D. Risk assessments at the premises

Correct Answer: A

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Question 8

In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?

A. Possibilities Identified Notice

B. Prior Information Notice

C. Procurement Information Number

D. Procurement Identification Number

Correct Answer: B

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Question 9

In which procurement process is a PQQ not issued?

A. Competitive Procedure with Negotiation

B. Open

C. Competitive Dialogue

D. Restricted

Correct Answer: B

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CIPS Supplier Relationships - L4M6 Exam Practice Test

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