Pass the CIPS CIPS Level 4 Diploma in Procurement and Supply L4M6 Questions and answers with CertsForce

Comprehensive and Detailed Explanation:

In Michael Porter's Value Chain model, primary activities are those that are directly involved in the creation and delivery of a product or service. These include:

Inbound Logistics:Activities related to receiving, storing, and distributing inputs internally.

Operations:Transforming inputs into the final product.

Outbound Logistics:Distributing the final product to customers.

Marketing and Sales:Activities that inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.

Service:Activities that maintain and enhance the product's value, such as customer support and repair services.

Firm infrastructure and technology development are considered support activities, as they assist the primary activities in helping the organization achieve its competitive advantage.

Explanation

The correct answer is ‘Intellectual Property Rights’. Grey Stone will need to share its idea for the vaccine with the pharmaceutical company and this is risky if there is no trust between the parties. See p.134 for more information on Risks of Partnerships.

Explanation

Jenny should consider whole life costing. Ensuring value for money means considering a combination of price and quality throughout the lifetime of the product. See p.65 for more on ‘Achieving Value for Money’

Comprehensive and Detailed Explanation:

When a buyer selects a single supplier for a specific period, such as a one-year contract, and excludes other suppliers during this time, this is referred to as asingle sourcedrelationship. This approach is often used to consolidate purchases, achieve economies of scale, and build a more streamlined procurement process for specific goods or services.

Explanation

Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es

Explanation

A PIN is a ‘prior information notice’ – it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 “supplier identification- public sector” for more details.

Comprehensive and Detailed Explanation:

Differentiation involves offering unique products or services that are valued by customers, allowing the company to charge premium prices. This strategy focuses on uniqueness and added value rather than competing solely on cost.

Explanation

This is a leverage supplier on the Kraljic Matrix; high cost impact and low risk impact. The diagram on p.20 gives the example of utility services such as electricity as a common leverage supplier. There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix

Comprehensive and Detailed Explanation:

For one-off, low-value purchases that are readily available from multiple suppliers, anadversarialrelationship is often appropriate. This type of relationship is transactional, with minimal collaboration or long-term commitment. The focus is on obtaining the best price and terms for a specific purchase without investing in developing a deeper relationship.

In the Norming stage of Tuckman’s model of team development, teams begin to resolve their differences, appreciate each other's strengths, and respect authority. Agreement on design and role assignment indicates the team has moved past conflict (Storming) and is now functioning collaboratively, although not yet fully productive (Performing).