Pass the CIPS CIPS Level 5 Advanced Diploma in Procurement and Supply L5M7 Questions and answers with CertsForce

According toMichael Porter’s Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.

Short cited term: “primary activities – logistics, operations, marketing and sales” (L5M7 Study Guide, p. 76).

Revenue-basedandOutcome-basedpricing share financial benefits and performance gains, motivating suppliers to excel.

Short cited term: “gainshare, revenue and outcome pricing as supplier incentives.” (L5M7 Study Guide, p. 198)

ISO 9001sets the framework forquality management systems(QMS), based on principles such as customer focus, leadership, and improvement. Short extract: “ISO 9001—quality management.” (L5M7 Study Guide, p.122)

Multi-sourcing canincrease inventory/duplicationand createquality inconsistencybetween sources. Reduced dependency (C) is anadvantage, and (D) is a neutral characteristic rather than a disadvantage. Short extract: “multiple sources may lead to duplication/stock and variable quality.” (L5M7 Study Guide, p.6)

Primary datais information collectedfirst-hand, includingsurveys, interviews, and questionnaires. Sandy’s approach aligns with primary data collection methods.

Short cited extract: “Primary data: original research such as questionnaires and interviews.” (L5M7 Study Guide, p.141)

AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).

Short cited term: “used to identify root causes of problems.” (L5M7 Study Guide, p. 126)

Relationship effectiveness is damaged bymistrustand poorfeedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: “trust,” “communication/feedback” (L5M7 Study Guide, p.93).

Rationalisationincludesreducing supplier numbersand practices such astier-skippingto simplify the network and reduce cost/complexity. Short extract: “rationalisation—reduce supplier base; consider tier-skipping.” (L5M7 Study Guide, p.11)

Single-sourcingbuildsexclusive, strategic relationshipswith one supplier to secure priority service and joint improvement opportunities.

Short cited extract: “Single-sourcing – exclusivity to gain stronger commitment and collaboration.” (L5M7 Study Guide, p. 81)

Therelationship spectrumshows thattransactional relationshipsare theleast trust-based, focusing on short-term exchanges with minimal collaboration.

Short cited extract: “Transactional – low trust, short-term, low collaboration.” (L5M7 Study Guide, p.80)