CIPS Exam L4M8 Topic 8 Question 51 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 51
Topic #: 8

[All L4M8 Questions]

Describe four factors that could damage reputation within the supply chair

AExplanation:
The reputation of all the organizations within a supply chain is linked. A Company's reputation is an intangible asset that can contribute to the failure of an organization if damaged. Factors that could damage organizational reputation within the supply chain are;
1. Quality: if the product or service quality is poor the organization may not satisfy it customers and this can lead to a loss of reputation in the market. For example, a residential building construction company contracting a supplier that would do a bad job which in three months may require home owners to reinstall new doors.
2. Sustainability: if the organization is not replenishing that which it is extracting, it will some day run out of business or probably loss loyal customers. For example a drilling company that spills hydrocarbon as it drills.
3. Fit for purpose: if an organization produce a product or carry out services that are not fit for purpose, it may run at loss for there will be so much rejection and rework. This can lead to customers switching to another organization which product or services are fit for their purpose.
4. Contract management: an organization will have to manage its suppliers and the contracts to ensure they are delivering what they were contracted to do. A poor contract management is a waste in the process of delivery that can lead to reputational loss.

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Suggested Answer: A

by Hannah at Dec 10, 2024, 01:01 PM

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Mariko

1 days ago

I agree with you, Paulina. If customers are not satisfied with the product, they will switch to another organization.

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Paulina

2 days ago

I think poor quality is a major factor that could damage reputation in the supply chain.

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