CIPS Exam L4M2 Topic 8 Question 31 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 31
Topic #: 8

[All L4M2 Questions]

Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?

ASource this group of products from only one supplier

BFind an alternative source to secure supply

CAssign some of procurement jobs to user department

DForm partnership relationship with the current supplier

Show Suggested Answer

Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.

LO 3, AC 3.1

by Claribel at Apr 09, 2024, 09:31 PM

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Lemuel

1 months ago

I'm with Shawnda on this one. B is the way to go. Diversifying the supply source is crucial when dealing with high-risk geographical areas.

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Afton

12 days ago

I agree with Shawnda, diversifying the supply source is important.

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Cory

1 months ago

Haha, I bet Malcolm is trying to get out of doing his job! C - Assign some of the procurement jobs to the user department sounds like a lazy solution to me.

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Yolando

2 days ago

D) Form partnership relationship with the current supplier

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Stanford

11 days ago

B) Find an alternative source to secure supply

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Joni

1 months ago

A) Source this group of products from only one supplier

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Malcolm

2 months ago

I'd go with D - Form a partnership relationship with the current supplier. That way, we can work together to improve the supply chain and minimize the impact of potential floods.

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Tamekia

1 months ago

True, having multiple options can help us mitigate risks and ensure a steady supply of products.

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Golda

1 months ago

We could also consider finding alternative sources as a backup plan in case of any disruptions.

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Emogene

1 months ago

I agree. It's important to have a strong relationship with our suppliers, especially in this situation.

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Lawana

1 months ago

That sounds like a good idea. Working closely with the supplier can help us come up with contingency plans.

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Shawnda

2 months ago

The best option here is B - Find an alternative source to secure supply. Relying on a single supplier from a flood-prone area is a huge risk that needs to be mitigated.

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