Mastering Procurement

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Which factor can help improve leverage with suppliers?

Offering higher prices to suppliers

Investing time and effort in developing strong relationships (correct)

Avoiding any contact with suppliers

Keeping negotiations strictly professional

What can strain relationships with suppliers?

Lack of communication

Contract performance (correct)

High prices

Negotiations

What should be done to repair strained supplier relationships?

Terminate the contract

Avoid any contact with suppliers

Find creative ways to meet stakeholder expectations (correct)

Ignore the issues and move on

Which supplier classification represents the bottom 50% of suppliers but only accounts for 5% of the procurement spend?

Classification C Signup and view all the answers

What is the focus of contract management for Transactional Suppliers?

Increasing transactional efficiency Signup and view all the answers

What can positive relationships based on reputation and trust lead to during negotiations?

Increased transparency Signup and view all the answers

What is the main benefit of building relationships based on reputation and trust with internal stakeholders?

Understanding negotiation needs and expectations Signup and view all the answers

Which factor is important in building collaborative relationships by providing well thought out value adding contributions to joint planning and risk management forums and reviews?

Joint planning and risk assessments Signup and view all the answers

What does it mean to act with integrity in building collaborative relationships?

Being ethical, principled, and accountable Signup and view all the answers

Why is it important to avoid engaging in deceptive or unethical practices in collaborative relationships?

To build trust Signup and view all the answers

What is a key step in repairing relationships in a collaborative setting?

Separating the people from the issue Signup and view all the answers

According to the CIPS Relationship Spectrum, which type of relationship is characterized by spot buying and a win-lose orientation?

Competitive relationships Signup and view all the answers

What is the focus of collaborative relationships according to the CIPS Relationship Spectrum?

Continuous improvement projects Signup and view all the answers

According to the ABC Analysis, which suppliers should be classified as 'Strategic Suppliers'?

The top 20% of suppliers with the highest spend Signup and view all the answers

What approach should be taken in negotiations with strategic suppliers according to the text?

A win-win approach Signup and view all the answers

Which step in repairing a relationship focuses on identifying the specific issues that contributed to the breakdown?

Step 4: Identifying and addressing issues Signup and view all the answers

What is the purpose of establishing expectations in repairing a relationship?

To define acceptable behavior and communication norms Signup and view all the answers

What is the importance of regular relationship assessments in repairing a relationship?

To evaluate the progress of the relationship repair process Signup and view all the answers

What preventative actions can be taken to prevent a relationship breakdown?

Updating service level agreements Signup and view all the answers