Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?
Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew’s cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier’s product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier’s performance. Is this the correct thing to do?
A procurement category manager has been asked to advise the project team on the appropriate selection and awarding process for a complex procurement project in a multi-geographical organisation. It is likely the specification will be updated during the process, and several phases of negotiation will be required throughout. This will include final negotiations with the winning bidder. The team are therefore aware it will be a time-consuming project. Which process should be advised?
Which of the following statements is an advantage to the buyer of early supplier involvement? Select the THREE that apply.
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
A doctor's surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager's main motivation for doing this?
Which of the following is not a type of tender process used in the Public Sector?
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 local government procurement team is undertaking a full review of their current internal working processes. The team of buyers currently have a partnership-style relationship with their routine suppliers. Is this the best relationship style to use?
Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE
According to Michael Porter, what is procurement?
Which of the following are recognised organisational culture types? Select THREE
Which of the following is an important step in partnership sourcing?
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
In the public sector, there are many sources of information that a buyer can use to identify a suitable supplier. Which of the following could be used? Select THREE
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn’t hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?
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?
Hungry Sandwich Co. produces over 5,000 freshly made sandwiches on-site every day. The main ingredient that Hungry Sandwich Co. buys is bread. It is the item they spend the most money on, and they have a long-term partnership agreement with a local bakery to manufacture and supply fresh bread every morning. Using a supplier positioning matrix, which is the appropriate category for bread for Hungry Sandwich Co.?
In the STEEPLED framework, which of the following is an economic factor?
The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?
Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent price increase. What is this tactic known as?
Under what circumstances should a competitive tender not be completed? Select TWO.
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
An IT company is developing and launching a new product to the market. The project requires experts from different divisions of the business. What type of team should run this project?
A common reason attributed to many partnerships failing is ...
Products or services that are more suitable for partnership sourcing match which of the following criteria?
Which one of the following is an advantage of early supplier involvement?
Which of the following is a stage in the relationship lifecycle?
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
Which of the following would not affect rivalry in a marketplace? Select TWO.
A partnership relationship can be described as any relationship between a buyer and supplier where there is a good level of communication and both parties are happy with each other’s performance. Is this statement TRUE?
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?
A buyer is procuring a high-value specialist piece of medical equipment to use in the healthcare sector from a market that consists of minimal competition. The buyer has decided to use an open tender procedure to purchase the equipment. Is this an appropriate method to use?
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy’s first step?
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
A comprehensive approach to managing the termination of a contractual relationship would include ...
A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
A company's analysis shows that some of their products from a supplier fall into the 'strategic' segment of the supply positioning grid. They are meeting with the supplier with the intention that they enter into a partnership. The supplier views the company as 'core' to their business. Which one of the following factors would be most important in determining that a partnership agreement would be good for both companies?
Security company ARLA has recently won a new contract for guarding a school. Another company, ENA, has previously been providing the contract and employed the current guard who has worked at the school for 5 years. What key legal issue needs to be considered when the current relationship is terminated and the new company takes over?
A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded. Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose. Can the Manager do this?
What is the correct order of the stages of team development?
Matt Blanche is the manager of a procurement team. Two high-performing individuals in the team have regular conflicts between them. Which of the following resolutions would be appropriate to resolve the conflict? Select all that apply.
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
Why is it more difficult for buyers in the public sector to build relationships with suppliers?
A large office orders weekly from a stationery supplier. The items are low cost and if the delivery is a day late it does not affect the running of the office. Where would this supplier be positioned in a supplier matrix?
Which of the following are considered value-adding primary activities?
Inbound logistics
Firm infrastructure
Technology development
Marketing and sales
One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:
A supplier wishes to develop a new blood collection system for healthcare but needs to work with a clinical expert to develop the device. Why would a partnership be the best approach?
Which of the following are the stages of team development?
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?
What is the correct order for the 5 stages of team development?
In the 1990s a company spent a lot of time and money developing a device that you could carry around that could play CDs. The product spent a long time in development but when it was released the sales figures were very disappointing. This was in part due to the fact another product was released at a similar time which had much more developed technology and could play music without the cumbersome size of a portable CD player. Which of the following did the company not consider when developing the product?
Which of the following characteristics are typical of a partnership approach relationship between a buyer and supplier?
Win:Lose (distributive) style negotiations
Joint key performance indicator (KPI) measurement
Definitive contract end period
Transparent information sharing
Kyle Crant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.
The director of procurement for a global telecommunications firm has segmented their expenditure and has decided to focus on developing relationships with their bottleneck suppliers. Is this the correct process?
Which of the following would you use to qualify new suppliers? Select THREE.
Which of the following are advantages for the buyer in a partnership arrangement?
Price stability
Cost of relationship management
Supplier complacency
Cost savings achieved
A partnership between a software development company and a software supplier has recently been created. In order for the partnership to be successful, what is a critical action to take in the early stages of their relationship?
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?
Which of the following are examples of internal stakeholders of a manufacturing repair organisation? Select TWO that apply.
In an oliogopy market, what would a regulator do?
David is sourcing a new cleaning contract as he is not impressed with his current cleaning company’s performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method. Is this the correct way forward?
Lion Manufacturing is about to enter into a partnership with Penguin Logistics, who will provide delivery to and from Lion Manufacturing's factories and warehouses. In this relationship, what type of negotiation strategy should Lion manufacturing use?
Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.
What is a key driver for developing a partnership relationship?
A hospital awarded a contract to an IT consultancy to build and maintain their payroll and patient information systems. After a successful implementation, problems started to appear, with poor maintenance and accuracy of information, and slow response times from the supplier. After repeated problems, the decision to terminate the contract was agreed. Which of the following would be the priority legal concern for the hospital?