CIPS Exam L4M2 Topic 1 Question 40 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 40
Topic #: 1

A company has a lists of items that make up 15% of total spend. These items also do not largely impact on quality of final product. The supply continuity is secured. Which of the following will be the most appropriate managing approach to purchase these items?

AEnhance supply continuity

BSimplify procurement process

CBuild partnership with suppliers

DDrive down cost based on market competition

Show Suggested Answer

Suggested Answer: B

Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.

LO 2, AC 2.1

by Cammy at Jul 15, 2024, 01:49 AM

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Ryan

3 months ago

D) Drive down cost based on market competition. The classic 'race to the bottom' approach. Gotta love it!

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Starr

4 months ago

A) Enhance supply continuity? More like enhance my nap time during this exam, am I right folks? *wink wink*

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Yuki

4 months ago

Hmm, I'm going with C) Build partnership with suppliers. It's the only way to secure that supply continuity and keep the quality up, you know? Plus, who doesn't love a good supplier-buyer bromance?

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Leonida

4 months ago

I think D) Drive down cost based on market competition is the best option. Gotta squeeze those suppliers for all they're worth, am I right?

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Ligia

3 months ago

True, but driving down costs based on market competition could lead to better deals for the company.

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Vincenza

3 months ago

I see your point, but simplifying the procurement process could also save time and resources.

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Micah

3 months ago

But wouldn't enhancing supply continuity be more beneficial in the long run?

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Mike

3 months ago

Enhancing supply continuity could also be a good option to ensure a steady flow of these items.

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Lacresha

3 months ago

I agree, building partnerships can lead to better quality and service. It's not always about driving down costs.

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Jenifer

3 months ago

I think C) Build partnership with suppliers is a better approach. It's important to have strong relationships with suppliers.

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Tish

3 months ago

I disagree, I think C) Build partnership with suppliers is the way to go.

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Edwin

4 months ago

B) Simplify procurement process is the way to go. Who needs all that fancy partnership nonsense when you can just streamline the process and get it done faster?

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