Free CIPS L4M6 Practice Exam with Questions & Answers | Set: 5

Explanation

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

Explanation

The correct answer is ‘no-the contract is not of significant value’. CIPS state that competitive tenders should only be used when ‘the item or service is of significant value’ p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.

Explanation

You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you’re procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn’t form part of a RFP. See p.76

Comprehensive and Detailed Explanation:

The supplier relationship lifecycle comprises several stages that outline the progression of the buyer-supplier relationship. One of these stages isMeasuring, which involves assessing the supplier's performance against agreed-upon metrics and key performance indicators (KPIs). This stage is crucial for ensuring that the supplier meets the organization's expectations and for identifying areas for improvement.

Forward buying involves purchasing in advance to lock in current prices and avoid future increases. This strategy is effective in volatile markets where price hikes are anticipated.

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.

In IT consultancy contracts, the ownership and control of data, systems, and intellectual property rights (IPR) are critical. If the hospital terminates the supplier relationship, it must ensure continued access to patient records and payroll systems. Confidentiality and service quality are important, but IPR is the priority legal concern.

An adversarial relationship is highly competitive, often win:lose, focusing on cost and negotiation power rather than collaboration. It contrasts with partnerships or strategic alliances.

Comprehensive and Detailed Explanation:

Partnership sourcing is most appropriate for products that are critical to the buyer's business, involve high spend, and are technically complex or require innovation. The chocolate brownie cake is the company's most popular product, indicating high sales volume and strategic importance. Establishing a partnership with suppliers for this product can lead to benefits such as improved quality, innovation, and supply chain efficiency.

Explanation

In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40