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L4M6 Latest Braindumps Questions - Valid L4M6 Exam Labs

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CIPS Supplier Relationships Sample Questions (Q23-Q28):

NEW QUESTION # 23
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?

A. Technological
B. Economic
C. Ethical
D. Sociocultural

Answer: A

Explanation:
Technological factors play a pivotal role in IT equipment supply chains. Advancements, obsolescence, and innovation significantly affect production, cost, and competitiveness, making it a primary focus in supply chain development.

NEW QUESTION # 24
Price fluctuations can affect profitability. Is this statement correct?

A. Yes, as sales may drop if the product is price inelastic
B. No, only decisions made by the chief executive affect the price
C. No, price is not related to profitability
D. Yes, if the product's costs increase and the price does not

Answer: D

Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.

NEW QUESTION # 25
Which of the following are examples of ways in which businesses can add value? Select THREE that apply.

A. Investing in customers
B. Creating a win-win price
C. Offering convenience
D. Reducing customer service levels
E. Product features and benefits
F. Through delivering excellent service

Answer: C,E,F

Explanation:
Adding value involves enhancing customer experience through excellent service, providing differentiated product features, and offering convenience. These align with procurement strategies aimed at driving customer satisfaction and loyalty.

NEW QUESTION # 26
You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

A. supplier power
B. threat of substitution
C. threat of new entrant
D. buyer power

Answer: C

Explanation:
This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter's 5 Forces - see p. 39

NEW QUESTION # 27
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.

A. No tender process
B. No defined end period
C. Supplier KPIs
D. Early supplier involvement
E. Lower costs

Answer: A,B,D

Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5

NEW QUESTION # 28
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