Which of the following can have a detrimental effect on supply-chain relationships? Select TWO.
Answer(s): A,C
Relationship effectiveness is damaged by mistrust and poor feedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: "trust," "communication/feedback" (L5M7 Study Guide, p.93).
CIPS L5M7 Study Guide, p.93.
Where two organisations at different levels of the supply chain share responsibilities, resources, and performance information to serve similar end customers, what is this known as?
Answer(s): A
Vertical collaboration occurs between different tiers (e.g., buyersupplier) to coordinate capabilities for customer value. Short cited term: "vertical collaboration ... different levels/tiers" (L5M7 Study Guide, p.90).
CIPS L5M7 Study Guide, p.90.
Electro Bob is a wholesaler of electrical equipment. One of its customers, RoostyFace, spends very little and is unlikely ever to increase its spend. What type of customer is RoostyFace to Electro Bob (Supplier Preferencing Model)?
Answer(s): D
In supplier preferencing, nuisance customers have low value/attractiveness with limited growth potential. Short cited terms: "nuisance," "low attractiveness/low value" (L5M7 Study Guide, p.86).
CIPS L5M7 Study Guide, p.86.
For items viewed as Strategic/Critical (high supply risk and high value), which sourcing strategy is best?
Answer(s): C
The Kraljic Matrix recommends partnership/alliances for strategic items to secure continuity, innovation, and joint value creation. Short cited term: "strategic items ... partnership" (L5M7 Study Guide, p.84).
CIPS L5M7 Study Guide, p.84.
Which of the following relationship styles is the least collaborative?
Answer(s): B
On the relationship spectrum, arm's-length is a low-collaboration style (only adversarial is lower), characterised by limited information sharing and short-term focus. Short cited term: "relationship spectrum ... arm's-length (low collaboration)" (L5M7 Study Guide, p.80).
CIPS L5M7 Study Guide, p.80.
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