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QUESTION 52
Kyle Crant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?

QUESTION 53
A doctor’s surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager’s main motivation for doing this?

QUESTION 54
What are service credits?

QUESTION 55
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.

QUESTION 56
A supplier wishes to develop a new blood collection system for healthcare but needs to work with a clinical expert to develop the device. Why would a partnership be the best approach?

QUESTION 57
A partnership relationship in portfolio analysis is appropriate for which category of procurement?

QUESTION 58
In the Purchasing Portfolio Matrix, a bottleneck product is one which is purchased in a small quantity but has the potential to halt production at a factory. Is this TRUE or FALSE?

QUESTION 59
Which of the following are advantages of partnering?

QUESTION 60
In which procurement process is a PQQ not issued?

QUESTION 61
Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny’s next step?

QUESTION 62
At what stage of the relationship cycle could you use Carter’s 10 Cs?

QUESTION 63
Which of the following are possible drivers for partnership sourcing? Select THREE.

QUESTION 64
Togo Bongos is a manufacturer of percussion instruments, in particular of bongo drums. It requires electricity to run its factories and this is a major factor of cost impact. There are lots of suppliers of electricity in the market and there is no switching costs if Togo Bongos wanted to switch suppliers. What type of supplier is Togo Bongo’s electricity supplier?

QUESTION 65
The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modelling activity. This will be undertaken with a cross-organisational team of internal stakeholders and key strategic suppliers. What would be the buyer’s initial objective from the cost modelling activity?

QUESTION 66
A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?

QUESTION 67
A ‘synergy’ within a partnership can lead to what?

QUESTION 68
A restricted market is a market where there are only a small number of capable and competent suppliers.
Which of the following is not a reason for a marketplace to be restricted?