L4M6 Exam Dumps - Supplier Relationships

If the market has few suppliers, an open tender is not appropriate, as it adds unnecessary time and cost. Instead, a restricted or negotiated procedure is more effective. Open tendering is best used in highly competitive markets.

Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.

Explanation

Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification,segmentation and risk management, performance management, development and innovation, phase out. P.13

Effective communication is essential in partnerships to ensure alignment on objectives, progress updates, and issue resolution. Regular communication builds trust and fosters collaboration, leading to successful outcomes.

Explanation

This QUESTION NO: refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service

Explanation

Carter's 10 Cs are a way to qualify (aka shortlist) a supplier. See p.11 for more details on this and p.10 for the stages of the relationship cycle.

Early supplier involvement highlights supplier strengths and capabilities, enabling collaborative development. This supports innovation and optimizes the procurement process.

Explanation

The 5 Rights of procurement are; place, quality, quantity, time, price. (Price and Cost are not the same thing). See p.38