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CIPS Supplier Relationships Sample Questions (Q75-Q80):

NEW QUESTION # 75
A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?

Answer: A

Explanation:
Comprehensive and Detailed Explanation:
In scenarios requiring specialized expertise and collaborative input, apartnering relationshipis most appropriate. This type of relationship fosters close cooperation, shared goals, and mutual trust, enabling both parties to contribute effectively to the project's success.
Reference:
CIPS L4M6 Study Guide


NEW QUESTION # 76
National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?

Answer: B

Explanation:
Regular reviews focusing on lessons learned and continuous improvement ensure the partnership remains effective and aligned with objectives. This supports ongoing collaboration and operational excellence.


NEW QUESTION # 77
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

Answer: C

Explanation:
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13


NEW QUESTION # 78
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

Answer: D

Explanation:
The correct answer is 'Sudden changes in the marketplace' - this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163


NEW QUESTION # 79
Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

Answer: A

Explanation:
Bottleneck items pose high risk despite low spend. Effective management of these suppliers minimizes supply chain disruptions, aligning with portfolio analysis strategies.


NEW QUESTION # 80
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