CIPS Questions With Correct Answers 100%

CIPS Questions With Correct Answers 100% Tender Process - answerDetermine style of tender Prepare invitation -include info so all bidders understand the need and send a suitable bid Send ITT using suitable platform Receive bids - any bids after deadline date should be disregarded. Evaluate the bids. Check they meet the required expectations, disregard bids that are incomplete or bids that are not the correct standard. Evaluate the bids against the criteria and score. Use a cross functional team so the process is fair Award contract and give feedback Contract management - reduces risk by identifying defects or performance issues at an early stage Restricted tender - answerA PQQ is sent out to them shortlist qualifying suppliers, once shortlisted they receive an ITT. This is used for large/specialised project usually with a conformance spec. Open tenders - answerAn invitation to bid that is open to all potential suppliers. This means that any potential suppliers who can meet the requirements of the invitation to bid is invited to submit a bid. competitive dialogue - answerLeast common, similar to negotiated, the need is advertised and suppliers are PQQ. Successful suppliers meet to discuss and agree a solution to the need. Once agreed, the procurement team creates a tender and give to suppliers and receive their bids. negotiated tender - answerVery high value project, this is used without any spec, only the end goal is advertised. The suppliers show interest and then they are sent a PQQ. The selected suppliers discuss with the buyer how they would complete the task. This is the dialogue phase. This must include a minimum of 3 suppliers. They are then invited to submit their bids. Internal Stakeholders - answerDirectors, technical, staff, production, sales & marketing, finance, HR, storage and distribution Connected stakeholders - answerShareholders, end customers, intermediary customers, suppliers, financial institutions/lenders External Stakeholders - answerGovernment, pressure groups, interest groups, community and society, customers Mendelows matrix - answerHigh/low power high/low interest 7 effective stakeholder management - answerCommunication - keep them up to date Consultation - ask for feedback and opinions Empathy - understand how the stakeholder is feeling Planning - prepare and plan before engaging stakeholders Relationships - be open and honest fair and reasonable Risk - understand the risk that stakeholders could present and have a strategy Compromise - if the stakeholder has a valid concern then be prepared to Change strategy and accommodate their feedback ROI - answerreturn on investment - profit = sales - cost of goods sold Porter's 5 Forces - answer1 - degree of competition - a high degree can create more options for buyers and suppliers, with factors like speed of industry growth, capacity utilisation, exit barriers, switching costs and diversity of low competitors 2 - threat of new entrants - low cost manufacturers such as China are eroding the competitiveness of traditional industries 3 - threat of substitutes - new sets of growing composites, thermosets and carbon fibre are replacing elements such as steel 4 - power of buyers - increasing power is leveraged over suppliers in the market when buyers consolidate specs 5 - the power of suppliers - fewer suppliers in a market increases the power levels among individual suppliers Acid Test Ratio - answerQuick assets (assets - inventory)/ Current Liabilities Current Ratio - answercurrent assets divided by current liabilities supply markets and competition - answerprocurement teams should conduct a detailed analysis of the marketplace and identify how best to meet forecast demands against the market conditions predicted for the upcoming year supplier analysis - answerentails establishing benchmarks through industry databases, issuing requests for info, conducting value chain analysis and undertaking supplier research to identify capabilities and financial state of key suppliers in the existing supply base Value Chain Analysis - answerViews a firm as a series of business processes that each add value to the product or service