Free L4M8 Exam Braindumps (page: 21)

Page 21 of 49

KPI should be written to match which area of an organization?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Key performance indicator (KPI) is another method of monitoring how a supplier is delivering on a contract.
When creating KPIs to manage suppliers and their contracts the areas monitored should be related to the organization's overall strategy that is where organization's success will be measured.



Describe a situation where amendment or an addendum would need to be created

  1. See Explanation section for answer.

Answer(s): A

Explanation:

After all the due diligence is carried out, before awarding contract to the best supplier, sometimes procurement professionals find themselves in some problem solving situation; this might have been emanated from supplier facing a financial challenge or problems from external environment. Responding to this might require an amendment or an addendum, depending on the case in hand. An amendment is for a physical change in the existing contract for example; if a contract contains a negotiated and agreed fixed price for the period of the contract but unexpected market forces such as an economic down turn or force majeure occur, the supplier may have to request an amendment order to continue to make a profit.
An addendum is when an additional document is added to the existing contract for example, If a contract have a schedule of rates and the market forces prices up, an addendum can be added to an existing contract with a revised schedule. Once accepted, the addendum becomes part of the con- tract. Addendum are physically used when the forecasted cost of a project rises and approval is needed to increase the contract spend.
Refer to the question column for response



Describe a situation where amendment or an addendum would need to be created

  1. See Explanation section for answer.

Answer(s): A

Explanation:

After all the due diligence is carried out, before awarding contract to the best supplier, sometimes procurement professionals find themselves in some problem solving situation; this might have been emanated from supplier facing a financial challenge or problems from external environment. Responding to this might require an amendment or an addendum, depending on the case in hand. An amendment is for a physical change in the existing contract for example; if a contract contains a negotiated and agreed fixed price for the period of the contract but unexpected market forces such as an economic down turn or force majeure occur, the supplier may have to request an amendment order to continue to make a profit.
An addendum is when an additional document is added to the existing contract for example, If a contract have a schedule of rates and the market forces prices up, an addendum can be added to an existing contract with a revised schedule. Once accepted, the addendum becomes part of the con- tract. Addendum are physically used when the forecasted cost of a project rises and approval is needed to increase the contract spend.



What Incoterm applies here?
The goods are considered `delivered' at the point of release from the supplier's premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance ­ this must be arranged by the buyer. The risk is on the buyer from this point.

a) EXW ­ Ex Works
b) FCA ­ Free Career
c) CPT ­ Carriage Paid To
d) CIP ­ Carriage and Insurance Paid to

  1. EXW ­ Ex Works
  2. FCA ­ Free Career
  3. CPT ­ Carriage Paid To
  4. CIP ­ Carriage and Insurance Paid to

Answer(s): A



Page 21 of 49



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Napo Posholi commented on October 02, 2023
They are very helpful
Anonymous
upvote