Question 1

Greenberg Ltd is developing a new product and has assembled a cross-organizational team for this task, which includes a member from a strategic supplier. Is this an appropriate approach?

Options :

A : No, because including members from outside the organization can lead to conflicts of interest.

B : Yes, because it fosters collaboration and integration of diverse perspectives, which can be beneficial for product development.

C : Yes, because it allows for direct marketing to the supplier’s client base.

D : No, because it is against industry regulations to include members from a strategic supplier

Answer: B

Question 2

Friends Company manufactures a product which requires a particular type of valves. The company currently purchases the valves from a supplier at a price of $5 per unit. After analysing the market, the procurement team finds that other suppliers would supply with the same price or higher. With current capacity, the company is able to produce the valves internally. Which of the following should be considered if the company decides to in-source the valve production? Select TWO that apply

Options :

A : Cost effectiveness

B : Supplier selection criteria

C : Ability to meet performance standards

D : Type of tendering process

E : Negotiation strategies

Answer: A,C

Question 3

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?

Options :

A : Low levels of profitability

B : High barriers to entry

C : Strong governmental regulation

D : The product is easy to source elsewhere

Answer: D

Question 4

Which of the following statements is an advantage to the buyer of early supplier involvement? Select the THREE that apply.

Options :

A : Clarity of roles and responsibilities

B : Shared expertise for problem solving

C : Improved understanding of seller capabilities

D : Lower development costs

E : Low costs of switching suppliers

F : Supplier pre-qualification expertise

Answer: B,C,D

Question 5

CW Ltd needs a new supplier for its facilities management contract. It invites several suppliers to bid for the contract and sends them the ITTs. Three suppliers respond with their quotes and their quality certificates. The prices that these suppliers offer are slightly different. What factors should CW’s procurement team take into account to choose the best supplier?

Options :

A : Contract award

B : Value for money

C : Performance management

D : KPI development

Answer: B

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