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CIPS Supplier Relationships latest study torrent & L4M6 advanced testing engine & CIPS Supplier Relationships valid exam dumps
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CIPS Supplier Relationships Sample Questions (Q69-Q74):
NEW QUESTION # 69
Which one of the following is an advantage of early supplier involvement?
- A. Understanding of supplier capabilities
- B. No need for supplier non-disclosure agreements
- C. Supplier is responsible for all intellectual property risks
- D. Large investment in supplier communications
Answer: A
Explanation:
Early supplier involvement highlights supplier strengths and capabilities, enabling collaborative development.
This supports innovation and optimizes the procurement process.
NEW QUESTION # 70
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
- A. One of the contracted parties has clearly failed to perform its duties
- B. You ordered 10,000 items instead of 1,000
- C. Your internal stakeholder requested the wrong items
- D. Your MRP system placed a replenishment order that you do not need
- E. There has been a serious breach of contract terms
Answer: A,E
Explanation:
Legitimate reasons for contract termination under CIPS guidelines include failure to perform duties and serious breaches of contract terms. Ordering errors or changes in stakeholder needs are not valid termination grounds unless explicitly stated in the contract. This protects both parties from unjustified termination risks.
NEW QUESTION # 71
What are service credits?
- A. A type of payment where goods are delivered before payment is made
- B. A clause in a contract that allows for additional bonus payments for meeting KPIs
- C. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
- D. When a buyer makes a purchase on credit
Answer: C
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION # 72
Why is it more difficult for buyers in the public sector to build relationships with suppliers?
- A. Buyer power is strong in the public sector
- B. There are regulations prohibiting public sector buyers from developing relationships
- C. There are regulations that state competitive tender processes must be undertaken regularly
- D. Buyer power is weak in the public sector
Answer: C
Explanation:
It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).
NEW QUESTION # 73
In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?
- A. Procurement Identification Number
- B. Procurement Information Number
- C. Prior Information Notice
- D. Possibilities Identified Notice
Answer: C
Explanation:
A PIN is a 'prior information notice' - it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 "supplier identification- public sector" for more details.
NEW QUESTION # 74
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