CIPS Exam L4M8 Topic 6 Question 49 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 49
Topic #: 6

What is the method of monitoring suppliers?

AExplanation:
When a contract has been awarded, either is to meet tangible needs or intangible needs, contractors or suppliers should be managed to ensure that they are meeting up with fulfilling their contractual agreement. To establish this, there are methods of managing contracts and suppliers.
Service level agreement (SLA) clauses: is placed in contract to ensures that supplier meets the expected and agreed level of service
Key performance indicator (KPI): are used to manage contracts that fulfill tangible needs, the KPIs are set performance thresholds that are used to monitor supplier's performance.
Management by objectives (MBO): is the process of defining objective that are strategic to the organization relating them to the vision and mission and communicating them to the supplier through the contract and ensuring that this objective is met during contract performance.
Reviews: Regular supplier reviews are good practices, for it gives the buyer opportunity to give feedback on performance.
Continuous Improvement: Contracts and suppliers can be monitored through how they are chang-ing for better incrementally as they are fulfilling the schedule. There must be a set down system to timely improve on the process, people and continuously reduce waste.
Training: It is essential that training, are provided to come up on areas supplier is lacking.

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Suggested Answer: A

by Dottie at Oct 20, 2024, 08:42 PM

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Lilli

28 days ago

Haha, can you imagine a supplier trying to pull a fast one on the buyer? Good thing we've got these monitoring techniques to keep 'em in check. Ain't no slacking allowed!

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Ettie

6 days ago

And don't forget about the KPIs. We'll be monitoring their performance closely.

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Erinn

16 days ago

Yeah, those suppliers better watch out. We've got SLA clauses to make sure they deliver what they promised.

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Helene

1 months ago

Man, I hate it when a supplier drops the ball on a contract. But these methods sound like a good way to stay on top of things. Gotta make sure they're delivering what they promised, you know?

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Herminia

5 days ago

Regular reviews and continuous improvement are key to ensuring suppliers meet expectations.

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Alexia

8 days ago

MBO is a good way to align objectives with the supplier's performance.

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Otis

15 days ago

KPIs are important too, they set performance thresholds for suppliers to meet.

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Olive

1 months ago

Yeah, it's frustrating when suppliers don't deliver. SLA clauses help keep them in check.

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Markus

2 months ago

The continuous improvement process is a great way to keep suppliers accountable and always striving to do better. Training is crucial too - can't have them falling behind on the latest industry standards.

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