NO.54 What is value mapping?

NO.55 Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny’s next step?

NO.56 How would a buyer measure value for money from a relationship with a new supplier for goods?

NO.57 A restricted market is a market where there are only a small number of capable and competent suppliers.
Which of the following is not a reason for a marketplace to be restricted?

NO.58 Which of the following relationship types are characterised by low levels of trust? Select TWO options

NO.59 Early Supplier Involvement can be described as a collaborative relationship between a buyer and a supplier to develop a new project. Handfield’s model describes four different levels of supplier involvement ranging from none to ‘black box’ (which is when the design is primarily driven by the supplier. What other level features on this model?

NO.60 A doctor’s surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager’s main motivation for doing this?

NO.61 A buyer has a requirement to purchase 1,000 widgets for a manufacturing company. The widgets are critical for the next stage of the manufacturing process. What would be the key selection criterion for this buyer?

NO.62 Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited – what type of supplier is Friendly Flour Limited to Janet?

NO.63 Harry has just entered into a partnership with a key supplier. Although he is excited about the prospect, he thinks it’s a good idea to set some goals and KPIs. Which of the following criteria should Harry use to decide if a KPI is appropriate?

NO.64 What are the relationship characteristics of a Partnership?

NO.65 Why is it more difficult for buyers in the public sector to build relationships with suppliers?

NO.66 Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn’t need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?

NO.67 Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects.
They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directions and explore new markets for long-term growth. There is no formal contract in place between the two companies. Using the relationship spectrum, what relationship does this scenario best describe?

NO.68 Which of the following would not affect rivalry in a marketplace? Select TWO.

NO.69 A large office orders weekly from a stationery supplier. The items are low-cost, and if the delivery is a day late, it does not affect the running of the office. Where would this supplier be positioned in a supplier matrix?

NO.70 A local council requires facilities management services for ten schools based in their region. This service is a high-spend, high-risk, critical contract. Which sourcing approach would be the most appropriate?

NO.71 Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy’s first step?

NO.72 Hungry Sandwich Co. produces over 5,000 freshly made sandwiches on-site every day. The main ingredient that Hungry Sandwich Co. buys is bread. It is the item they spend the most money on, and they have a long- term partnership agreement with a local bakery to manufacture and supply fresh bread every morning. Using a supplier positioning matrix, which is the appropriate category for bread for Hungry Sandwich Co.?

NO.73 ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

NO.74 What is a disadvantage of including qualitative KPIs into a contract?

NO.75 Lion Manufacturing is about to enter into a partnership with Penguin Logistics, who will provide delivery to and from Lion Manufacturing’s factories and warehouses. In this relationship, what type of negotiation strategy should Lion manufacturing use?

NO.76 Which of the following factors would you use to analyse the macro-environment? Select THREE.