L4M6 Supplier Relationships Recap Week 5

Which is the missing Partnering Type...Indepedent, Integrated and

• Cohersive

• Collaborative

• Compromise

• Collective

Two major European supermarket chains, Tesco and Carrefour, have entered into a long-term partnership. They will leverage their joint product knowledge and sourcing skills to achieve significant cost reductions in the non-food goods sector, such as expenses on temporary staff, logistics and distribution, store fit-out, marketing, HR services and IT. The two companies will still operate independently and follow their own business strategies. What kind of partnership have Tesco and Carrefour established?

• Closer tactical relationship

• Co destined relationship

• Strategic alliance relationship

• Outsourced relationship

 A procurement manager is preparing for a negotiation with an important supplier. He plans to withhold some crucial information so that his company gains the upper hand in the negotiation. Is this correct when considering using integrative approach to the negotiation?

• No, this approach requires honest and open discussion

• No, holding back information will prompt the supplier to gain higher negotiation power

• Yes, the supplier must know what the buyer wants and how to provide that even when the buyer is silent on these matters

• Yes, the buying Org must maximise its gain even at the detriment of the other party

How does Common Procurement Vocabulary (CPV) help with public procurement in the EU?

• To decrease the level of competition between bidders

• To determine a supplier's fixed costs and variable cost

• To send the contract opportunities to interested suppliers

• To increase the buyer's bargaining power in negotiation

What is the fundamental tool for examining the origins of competitive advantage

• Value Judgement

• The Value Chain

• Value for Money

• The Value Added Benefit

What are some essential factors for creating high performance teams

• Intensifying the competition among team members

• Flattering the team leader

• Creating a shared sense of purpose

• Criticising every minor errors of the other team members

Eloise has gone through a very difficult negotiation with no sight of success. However, she still hopes to work with the supplier in the future. What can she do to maintain the relationship. Choose TWO that apply

• Complain about the suppliers attitude

• Keep communication open

• Ignore the supplier completely

• Ask for feedback

What are the main benefits of using Mendelow’s theory to map the stakeholders for procurement? Select TWO that apply.

• It provides unbiased results because it uses objective criteria

• It helps to gain insights to key stakeholders' requirements and expectations

• It helps to identify whether these stakeholders support or oppose to a project

• It provides the right perception in long span of time

• It helps to allocate time and efforts effectively in managing relationships

Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.

• Resolving some conditions that would otherwise have them competing for resources

• Subjective assessment of performance

• Reduced response time during contract performance

• Avoidance of submitting important documentations

• Exploring a disagreement to learn from each other's insights

   

Component A is a key ingredient for XYZ Ltd’s main product. It is hard to find other sources or substitutes for this component. XYZ Ltd has a long-term relationship with its current supplier. The price of component A depends on the price of cobalt, which is its main raw material. Cobalt price is expected to rise sharply in the next three months. How should XYZ’s procurement manager act if customers are very sensitive to changes in XYZ product’s price?...Select TWO that apply

• Inform internal stakeholders

• Work with supplier to mitigate the increase

• Decide to pass the price to XYZ customers

• Prepare a win-lose negotiation with supplier