Exact2Pass
In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?
Which of the following would you use to qualify new suppliers? Select THREE.
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?
Which of the following are Intellectual Property Rights that you would you encounter in procurement and supply contracts? Select THREE.
Which of the following describes differentiation as a method of competitive advantage?
A company that sets out to be the lowest-cost producer in the market
A company that will seek to be unique in a way that is valued by buyers
A company producing a standard or budget cost product
A company producing a product that attracts a premium price charge
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?
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very fewsuppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyse its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
Which of the following is a valid reason for ending a relationship with a supplier?
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?
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?
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 one of the following would constitute a succession issue when terminating a relationship?
In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?
A competitor develops an alternative type of vacuum cleaner to one produced by your organization. Is this an example of the threat of substitutes, one of the five forces of competition described by competitive forces theory?
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?
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
An automotive company has hired Tom as the procurement manager. Tom is to manage a team of two people who have worked in the department for a number of years. Conflict exists between the two members of staff due to an overlap of responsibilities. Which of the following processes would be most appropriate for Tom to use to reduce this conflict?
Which of the following factors are considered when using the Kraljic Model to determine the kind of supply relationships and sourcing approaches for a category of items? Select TWO that apply.
Which of the following are NOT one of the four key principles of procurement in the EU?
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny’s next step?
Which of the following are typical examples of partnering between companies? Select the TWO that apply.
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.
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?
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
Varying levels of commitment is one reason why many partnerships fail. Why is this?
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers. What would be the most beneficial way for them to initially narrow down the supply options?
Beyond Say is a manufacturer of diamond rings. It sources a lot of different parts to create its products including diamonds, gold, cardboard boxes for the rings to go in, as well as stationary and copier paper for the offices. Although it doesn't buy many diamonds, these represent a large part of Beyond Say's spend. Which category of spend would diamonds represent?
Which of the following are advantages for the buyer of entering into a partnership? Select TWO.
Which of the following are examples of ways in which businesses can add value? Select THREE that apply.
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.?
Effective cost modelling involves which of the following?
Data gathering
Analysis of facts
Supplier negotiation
Issuing a request for quotation
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?
Which of the following relationship types are characterised by low levels of trust? Select TWO options
‘tail spend’ is a common category used in procurement and describes a category of items. What characteristics do theses items have?
Which of the following behaviours are you likely to see in a Partnership relationship?
Which of the following relationship types require the most investment from the buyer?
Innovation is a key consideration when entering into a partnership. Is this statement true?
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?
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?
Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?
Kyle Grant 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?
A 'restricted market' is likely to arise when the entry costs for new suppliers are prohibitively high, and levels of market profitability amongst existing suppliers may be relatively low. Is this a true statement?
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?
An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?
Which of the following are advantages for the buyer of early supplier involvement with the buyer's product development team?
A partnership approach to a buyer-supplier relationship, as opposed to a traditional adversarial approach, would have which of the following characteristics?
Is it correct to suggest that the sole objective of partnership sourcing is to achieve the lowest acquisition cost?
Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive ‘value for money’. Which of the following should Jenny consider when drafting her ITT?
A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?