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CIPS Supplier Relationships Sample Questions (Q28-Q33):

NEW QUESTION # 28
Which of the following are NOT one of the four key principles of procurement in the EU?

A. Transparency
B. Value for Money
C. Proportionality
D. Non-Discrimination

Answer: B

Explanation:
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75

NEW QUESTION # 29
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?

A. No- it would be better to solve the disagreement in-house
B. No- mediation could have a negative impact on the companies' reputation
C. Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise
D. Yes- mediation means the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues

Answer: C

Explanation:
The correct answer is 'Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise'. Be careful not to confuse mediation with arbitration - arbitration is when the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues. See p.112 for more information on solving disputes

NEW QUESTION # 30
Innovation is a key consideration when entering into a partnership. Is this statement true?

A. No- the key consideration when entering a partnership is cost reduction
B. Yes- innovation is the only reason to enter into a partnership
C. Yes- joint innovation projects are often a strong motivation for entering into a partnership
D. No- innovation is best achieved in a contractual relationship where KPIs can be monitored closely.

Answer: C

Explanation:
The correct answer is 'Yes- joint innovation projects are often a strong motivation for entering into a partnership'. The other options are simply not true statements. A lot of the questions on the 'Partnerships' chapters of the book are common-sense questions like this. It involves reading the Question: and using logic, rather that relying on your knowledge of procurement. If you found this Question: easy - that's a good sign for the exam.

NEW QUESTION # 31
Which of the following would you use to qualify new suppliers? Select THREE.

A. competency
B. cooperation
C. culture
D. cash
E. coordination

Answer: A,C,D

Explanation:
This is based on a real exam question- it's looking to see if you can remember Carter's 10 Cs. These are; cash, cost, consistency, culture, clean, communication, competency, capacity, commitment and control. (p.12 in the text book)

NEW QUESTION # 32
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?

A. This will result in economies of scale
B. This will result in cost-savings
C. The supplier is an expert in their field
D. This will free-up internal resources

Answer: C

Explanation:
The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don't relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5

NEW QUESTION # 33
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