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Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit. Which of the following added-value approaches will be the most critical for the...
What is the fourth E?
Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?A . EqualityB . EnvironmentC . EquityD . EthicsView AnswerAnswer: C Explanation: Equity is the fourth E- this means...
Which of the following is a selection criterion rather than an award criterion?
A company is about to invite tenders for a contract to clean external windows at several premises, all at least three storeys high. It is going to do this in two stages. For the first stage, it will issue a pre-qualification questionnaire (PQQ) and, from the replies, select at least...
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.A . end-usersB . legal departmentC . customersD ....
What type of commercial relationship would be the most appropriate?
A large construction group has a critical contract with a brick supplier. This represents high-value spend, and the contract has a five-year duration. What type of commercial relationship would be the most appropriate?A . PartnershipB . TransactionalC . Closer TacticalD . OutsourcingView AnswerAnswer: A Explanation: Given the criticality and high...
What is the most important legal consideration to be taken before terminating?
A law firm is ending an agreement with a client they have represented for many years. What is the most important legal consideration to be taken before terminating?A . Employee rightsB . ConfidentialityC . FinanceD . SecurityView AnswerAnswer: B Explanation: Confidentiality is critical in professional relationships, especially for law firms,...
Using the relationship spectrum, what relationship does this scenario best describe?
Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects. They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directions and explore new markets for long-term...
Which commercial relationship type would be most effective for the buyer to choose?
A textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers. Which commercial relationship type would be most effective for the buyer to choose?A . AdversarialB . Closer tacticalC...
National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?
National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?A . Category management and supplier rationalizationB . Specification development and managementC...
Is this a valid recommendation?
A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board...
