CIPS L4M6 LO3 EXAM QUESTIONS WITH
VERIFIED ANSWERS
what is type 1 of partnership? - ANSWER the organisations recognise each
other as partners and co-ordinate activities and planning on a limited basis. the
partnership has a short-term focus and involves only one function within each
organisation. partnerships of this type are less time-intensive to develop
what is type 2 of partnership? - ANSWER both companies progress beyond
the co-ordination of activities to integration. the partnership has a long-term
focus and a number of functions within both companies are involved
what is type 3 of partnership? - ANSWER the companies share a significant
level of operational integration. the buyer and supplier view each other as an
extension of each other's firm. no end date is set for their partnership
what characteristics distinguish between having a partnership relationship with
a supplier from having a traditional contracting relationship? - ANSWER -
early supplier involvement
no tender process or win-lose negotiations
shared costs and benefits
greater levels of information sharing and transparency
joint performance measurement and KPIs
no defined end period
less contractual
, what are some possible drivers for partnership sourcing? ANSWER working
together will generate synergies which are likely to result in reduced costs and
increased profitability
- product life cycles have reduced in the recent past, and this has necessitated
the development of products faster by the business
- changes in the marketplace or unstable markets may lead the buyers and
suppliers to work closer with each other for survival
- there might be a requirement to enhance performance to satisfy the ultimate
customer in the supply chain
-the need to reduce stock-holding and achieve world-class standards of supply
chain management
what is a product life cycle? - ANSWER a period of time which involves the
making of a product from scratch, bringing that product into the marketplace,
sale in the market of the product, and the eventual decline and removal of the
product from the marketplace
what is vertical integration? - ANSWER when a buyer owns companies within
its supply chain. there could be forward vertical integration where a buyer owns
a distributor, or backward vertical integration where a buyer owns one of its
suppliers of raw materials
what are the mutual benefits of partnership? - ANSWER - coming together and
co-operating is likely to create synergies which may provide reduced costs and
improved profitability for both partners
- investment costs, such as new machinery and research and development can
be shared by both partners
- partnership may provide improved competitive advantage and/or increased
market share. these are both likely to generate improved profits
VERIFIED ANSWERS
what is type 1 of partnership? - ANSWER the organisations recognise each
other as partners and co-ordinate activities and planning on a limited basis. the
partnership has a short-term focus and involves only one function within each
organisation. partnerships of this type are less time-intensive to develop
what is type 2 of partnership? - ANSWER both companies progress beyond
the co-ordination of activities to integration. the partnership has a long-term
focus and a number of functions within both companies are involved
what is type 3 of partnership? - ANSWER the companies share a significant
level of operational integration. the buyer and supplier view each other as an
extension of each other's firm. no end date is set for their partnership
what characteristics distinguish between having a partnership relationship with
a supplier from having a traditional contracting relationship? - ANSWER -
early supplier involvement
no tender process or win-lose negotiations
shared costs and benefits
greater levels of information sharing and transparency
joint performance measurement and KPIs
no defined end period
less contractual
, what are some possible drivers for partnership sourcing? ANSWER working
together will generate synergies which are likely to result in reduced costs and
increased profitability
- product life cycles have reduced in the recent past, and this has necessitated
the development of products faster by the business
- changes in the marketplace or unstable markets may lead the buyers and
suppliers to work closer with each other for survival
- there might be a requirement to enhance performance to satisfy the ultimate
customer in the supply chain
-the need to reduce stock-holding and achieve world-class standards of supply
chain management
what is a product life cycle? - ANSWER a period of time which involves the
making of a product from scratch, bringing that product into the marketplace,
sale in the market of the product, and the eventual decline and removal of the
product from the marketplace
what is vertical integration? - ANSWER when a buyer owns companies within
its supply chain. there could be forward vertical integration where a buyer owns
a distributor, or backward vertical integration where a buyer owns one of its
suppliers of raw materials
what are the mutual benefits of partnership? - ANSWER - coming together and
co-operating is likely to create synergies which may provide reduced costs and
improved profitability for both partners
- investment costs, such as new machinery and research and development can
be shared by both partners
- partnership may provide improved competitive advantage and/or increased
market share. these are both likely to generate improved profits
