CIPS SUPPLIER RELATIONSHIP L4M6 QUESTIONS
WITH VERIFIED ANSWERS
What is a connected stakeholder? - ANSWER A stakeholder who has enough
interest in the activities of a company. This is due to its contractual or
commercial relationship with the company.
What are the things that an internal stakeholder would include? - ANSWER It
includes internal end users, contract managers, legal team, employees.
What does a connected stakeholder include? - ANSWER It includes Suppliers,
Customers and clients
What does the list of external stakeholders include? - ANSWER Competitors,
communities, government and other public agencies
What does value for money mean? - ANSWER The most advantageous
combination of price and quality that makes a product or service fit for purpose
and will achieve the buyer's required outcomes. This needs to be reviewed in
terms of whole life costs.
Value for money is often referred to as the three E's, what are the three E's? -
ANSWER Economy, Efficiency, Effectiveness
What might be typical factors taken into account when defining value for
money? - ANSWER Fitness for purpose, quality, total lifetime costs, risk,
environmental and sustainability issues.
, Value for money can be created with competition. - ANSWER In the public
sector there are legal rules to support the creation of value for money,
transparency and fairness.
What might be the outcome of poor or non-compliance with procurement
process and procedure? ANSWER Lack of contract cover, Maverick buying
activity, May end up with a product or service that is unfit for purpose,
procurement activity is not assessed and managed in a consistent way.
How does buying add value when identifying the need? - ANSWER Make or
buy decision, support the creation of a crossdepartmental team to develop the
specification, consider where branded products could be replaced by substitute
nonbranded products or materials to reduce costs, encourage standardization
What is value mapping? - ANSWER The process by which value is created by
reducing or eliminating waste and operational inefficiencies.
What is the seven wastes? (TIMWOOD) - ANSWER Transportation,
Inventory, motion, Waiting, Over production, over processing, defects.
How can can value be added through a strategic approach? - ANSWER -
Review spend across various areas
-Following on from spend reviews they could aggregate demand and
consolidate spend.
-Supplier relationship management and risk management plans
-Specialist category and supplier knowledge.
Value addition through supplier relationships - ANSWER -To be able to
identify and use appropriate approach to deal with supplier.
WITH VERIFIED ANSWERS
What is a connected stakeholder? - ANSWER A stakeholder who has enough
interest in the activities of a company. This is due to its contractual or
commercial relationship with the company.
What are the things that an internal stakeholder would include? - ANSWER It
includes internal end users, contract managers, legal team, employees.
What does a connected stakeholder include? - ANSWER It includes Suppliers,
Customers and clients
What does the list of external stakeholders include? - ANSWER Competitors,
communities, government and other public agencies
What does value for money mean? - ANSWER The most advantageous
combination of price and quality that makes a product or service fit for purpose
and will achieve the buyer's required outcomes. This needs to be reviewed in
terms of whole life costs.
Value for money is often referred to as the three E's, what are the three E's? -
ANSWER Economy, Efficiency, Effectiveness
What might be typical factors taken into account when defining value for
money? - ANSWER Fitness for purpose, quality, total lifetime costs, risk,
environmental and sustainability issues.
, Value for money can be created with competition. - ANSWER In the public
sector there are legal rules to support the creation of value for money,
transparency and fairness.
What might be the outcome of poor or non-compliance with procurement
process and procedure? ANSWER Lack of contract cover, Maverick buying
activity, May end up with a product or service that is unfit for purpose,
procurement activity is not assessed and managed in a consistent way.
How does buying add value when identifying the need? - ANSWER Make or
buy decision, support the creation of a crossdepartmental team to develop the
specification, consider where branded products could be replaced by substitute
nonbranded products or materials to reduce costs, encourage standardization
What is value mapping? - ANSWER The process by which value is created by
reducing or eliminating waste and operational inefficiencies.
What is the seven wastes? (TIMWOOD) - ANSWER Transportation,
Inventory, motion, Waiting, Over production, over processing, defects.
How can can value be added through a strategic approach? - ANSWER -
Review spend across various areas
-Following on from spend reviews they could aggregate demand and
consolidate spend.
-Supplier relationship management and risk management plans
-Specialist category and supplier knowledge.
Value addition through supplier relationships - ANSWER -To be able to
identify and use appropriate approach to deal with supplier.
