CIPS Exam L4M2 Topic 1 Question 40 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 40
Topic #: 1

A company has a lists of items that make up 15% of total spend. These items also do not largely impact on quality of final product. The supply continuity is secured. Which of the following will be the most appropriate managing approach to purchase these items?

AEnhance supply continuity

BSimplify procurement process

CBuild partnership with suppliers

DDrive down cost based on market competition

Show Suggested Answer

Suggested Answer: B

Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.

LO 2, AC 2.1

by Cammy at Jul 15, 2024, 01:49 AM

Limited Time Offer

25%

Off

Get Premium L4M2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Yuki

21 hours ago

Hmm, I'm going with C) Build partnership with suppliers. It's the only way to secure that supply continuity and keep the quality up, you know? Plus, who doesn't love a good supplier-buyer bromance?

upvoted 0 times

...

Leonida

2 days ago

I think D) Drive down cost based on market competition is the best option. Gotta squeeze those suppliers for all they're worth, am I right?

upvoted 0 times

...

Edwin

15 days ago

B) Simplify procurement process is the way to go. Who needs all that fancy partnership nonsense when you can just streamline the process and get it done faster?

upvoted 0 times

...