L4M6 Supplier Relationships Recap Week 6

Which of the following would limit the buyer's potential to take advantage from brand new entrants to a market? If the buyer sets minimum requirements relating to

• employee qualifications

• insurance provision

• profit history

• technical capability

In a recently created team, people start to push against the established boundaries and there is a conflict between team members' working styles causing some people to feel frustrated. This team is at which stage of its development?

• Forming

• Norming

• Performing

• Storming

An engineering company (EngCo) is becoming concerned by the reducing number of its potential suppliers of components of X2ZZ, which is vital to the manufacture of its leading products. Over the years a number of suppliers have merged and some have exited the market. Which of the following actions might open up new suppliers to EngCo through substitute products?

• Change the specification

• Ease the commercial terms

• Shorten the supply chain

• Relax quality assurance

A leading pharmaceutical company (PharmCo) is concerned about the impact of market changes on its product portfolio. Following a recent review it has highlighted both the tightening regulatory regime around consumer protection and exchange rate volatility as two key threats. The factors of most concern to PharmCo are?

• legislative and economic

• political and environmental

• economic and political

• environmental and legislative

Auto Group (AG) is an automotive manufacturer. It is an established business with a strong market share in its chosen markets, providing vehicles in the mid-range quality segment. AG has decided to launch a new low-spec vehicle range in the economy vehicle segment. Its strategy is to price low, which it can do because it can produce the vehicles relatively cheaply due to its previous investments in technology. Its source of competitive advantage is based on which recognised approach?

• Product differentiation

• Cost leadership

• Brand differentiation

• Cost reduction

Partnership sourcing is highly effective and should be applied to all types of spend. Is this true?

• No, it will only be applicable to high value and high risk spend

• Yes, it is well known to drive maximum value on all areas of spend

• No, it should only be implemented on contracts of the highest spend values

• Yes, all suppliers should be treated like partners as it is good ethical practice

Effective cost modelling involves which of the following? Select the TWO that apply

• Data gathering

• Continuity planning

• Differential pricing

• Data analysis

At which stage of the relationship life cycle should a buyer focus mostly on monitoring the supplier against clearly stated standards?

• Onboarding

• Performance management

• Supplier development

• Mobilisation

Which of the following is the best approach for supplies which have high cost impact/low risk impact characteristics?

• Competitive tendering

• Joint venture

• Spot buying

• Strategic alliance

For a manufacturing organisation, significant added value can be achieved by maximising supply chain relationships in particular to reduce inventory holding quantities. Which of the following is an approach that such an organisation could use to achieve added value in this way?

• Value for money (VFM)

• Supply chain management (SCM)

• Just in time (JIT)

• Total quality management (TQM)