Supplier Relationship Management
Memos - MNP3703 2017
,Section A – Multiple Choice Questions
May/June
2017
1 2
2 4
3 2
4 2
5 1
6 2
7 1
8 2
9 3
10 3
11 2
12 4
13 2
14 3
15 2
16 2
17 2
18 2
19 1
20 4
, May/June 2017
Section B
Question One
1.1 Develop relationship with buying organisation
Low expenditure
Few alternate products/services available
Few qualified sources or products/services available
Unique specifications
1.2 ISO14001 certification
1.3
End user. This team member is tasked with the responsibility of
representing the end user community. This representative must
preferably also have been involved in the strategic sourcing team,
enabling the person to evaluate clearly if the supplier is performing in
accordance with the requirements set.
• Legal. A contractual agreement is a legally binding document and
should be prepared and evaluated with the assistance of competent
council. In a supplier relationship management environment the legal
component of the driving team is very important, as there are bound
to be legal implications with the implementation of an agreement.
This expertise is particularly vital when renegotiating the deal and re-
evaluating the buyer/supplier relationship. It is obvious that if a
prerequisite is not addressed in the written agreement it is in fact not
part of the deal.
• Purchasing, sourcing and supply professionals. These
representatives are trained to achieve the best price and the most
contractual protection. They understand and have the most experience
in traditional interaction between buyers and suppliers. It is important
to include both purchasing, sourcing and supply professionals who are
good deal-makers (excellent negotiators comprehending the data that
they need to know, understand how to analyse this on a real-time
basis and reassess their strategy according to changes that occur); as
well as excellent administrators (the manager of day-to-day
, operations, including requirement fulfilment by the supplier,
monitoring this performance and keeping record of the status quo.)
• Finance. The supplier relationship team need financial expertise
from a number of perspectives. The team should know what the
current financial structure of the agreement with the strategic supplier
is and be able to assess any changes that may have occurred. The
finance member can advise the team on the implications of various
financial options.
• Technical. Technical personnel can assist in determining if the
product or serviced supplied by the strategic supplier is still best-
suited for a purpose, and evaluate the performance on the grounds of
acceptance, reliability and compatibility. In some cases, the technical
expert and the end user will be the same person. In most cases,
however, they are not. Often, the most critical assessor of a product or
service is its particular user forum.
• Technical writer. The team members themselves can perform the
job of translating everything the team produces into requirement
documents. However, a technical writer can improve the efficiency of
the process by freeing the team members to efficiently scrutinise the
buyer/buyer/supplier relationship and the performance of the strategic
supplier.
• Senior management. Senior management will only become
involved in the supplier relationship team once a breach of contract
leads to the implementation of a remedy to resolve the particular
matter as specified in the written agreement
1.4. Suppliers must be managed
1.5. Principle Game is moving towards an exploit relationship with
Lula Lapeng Lodge
The axis of the model
The supplier perception model identifies how suppliers see a buying
organization by focusing on two aspects
(1) The value of the business offered by the buying organization in
terms of the supplier turnover levels, and (2) the level of
attractiveness that the buying organization’s business has for the
supplier.
Memos - MNP3703 2017
,Section A – Multiple Choice Questions
May/June
2017
1 2
2 4
3 2
4 2
5 1
6 2
7 1
8 2
9 3
10 3
11 2
12 4
13 2
14 3
15 2
16 2
17 2
18 2
19 1
20 4
, May/June 2017
Section B
Question One
1.1 Develop relationship with buying organisation
Low expenditure
Few alternate products/services available
Few qualified sources or products/services available
Unique specifications
1.2 ISO14001 certification
1.3
End user. This team member is tasked with the responsibility of
representing the end user community. This representative must
preferably also have been involved in the strategic sourcing team,
enabling the person to evaluate clearly if the supplier is performing in
accordance with the requirements set.
• Legal. A contractual agreement is a legally binding document and
should be prepared and evaluated with the assistance of competent
council. In a supplier relationship management environment the legal
component of the driving team is very important, as there are bound
to be legal implications with the implementation of an agreement.
This expertise is particularly vital when renegotiating the deal and re-
evaluating the buyer/supplier relationship. It is obvious that if a
prerequisite is not addressed in the written agreement it is in fact not
part of the deal.
• Purchasing, sourcing and supply professionals. These
representatives are trained to achieve the best price and the most
contractual protection. They understand and have the most experience
in traditional interaction between buyers and suppliers. It is important
to include both purchasing, sourcing and supply professionals who are
good deal-makers (excellent negotiators comprehending the data that
they need to know, understand how to analyse this on a real-time
basis and reassess their strategy according to changes that occur); as
well as excellent administrators (the manager of day-to-day
, operations, including requirement fulfilment by the supplier,
monitoring this performance and keeping record of the status quo.)
• Finance. The supplier relationship team need financial expertise
from a number of perspectives. The team should know what the
current financial structure of the agreement with the strategic supplier
is and be able to assess any changes that may have occurred. The
finance member can advise the team on the implications of various
financial options.
• Technical. Technical personnel can assist in determining if the
product or serviced supplied by the strategic supplier is still best-
suited for a purpose, and evaluate the performance on the grounds of
acceptance, reliability and compatibility. In some cases, the technical
expert and the end user will be the same person. In most cases,
however, they are not. Often, the most critical assessor of a product or
service is its particular user forum.
• Technical writer. The team members themselves can perform the
job of translating everything the team produces into requirement
documents. However, a technical writer can improve the efficiency of
the process by freeing the team members to efficiently scrutinise the
buyer/buyer/supplier relationship and the performance of the strategic
supplier.
• Senior management. Senior management will only become
involved in the supplier relationship team once a breach of contract
leads to the implementation of a remedy to resolve the particular
matter as specified in the written agreement
1.4. Suppliers must be managed
1.5. Principle Game is moving towards an exploit relationship with
Lula Lapeng Lodge
The axis of the model
The supplier perception model identifies how suppliers see a buying
organization by focusing on two aspects
(1) The value of the business offered by the buying organization in
terms of the supplier turnover levels, and (2) the level of
attractiveness that the buying organization’s business has for the
supplier.
