CIPS L4M2 Exam - 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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Scarlet

3 months ago

Assigning jobs to user departments? Not sure that's a good idea.

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Eric

3 months ago

Wait, is it really that prone to flooding?

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Theresia

3 months ago

Sourcing from one supplier sounds risky.

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Tarra

4 months ago

I think forming a partnership could work too.

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Nguyet

4 months ago

Definitely should find an alternative source!

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Temeka

4 months ago

Assigning procurement jobs to user departments sounds a bit risky. I think we should focus on securing supply first, right?

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Pamela

4 months ago

I feel like we practiced a similar question where sourcing from multiple suppliers was emphasized. So, option B might be the best strategy here.

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Adelaide

4 months ago

I'm not entirely sure, but I think forming a partnership with the current supplier could help mitigate risks too. Maybe option D?

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Stephaine

5 months ago

I remember we discussed the importance of diversifying suppliers in case of disruptions, so option B seems like a solid choice.

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Mariann

5 months ago

I'm a bit confused by the options presented. Assigning procurement to the user department doesn't seem directly relevant to the supply risk issue. I'll need to focus on the supplier management strategies and think through which one would be most effective.

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Arlie

5 months ago

Okay, I think the key here is to minimize the risk of supply disruptions from the flood-prone region. Finding an alternative source seems like the safest bet, even if it means a bit more work upfront. I'll make sure to explain my reasoning well.

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Rosendo

5 months ago

Hmm, I'm not sure about this one. Sourcing from a single supplier seems risky given the flooding issues, but I'm not sure if finding an alternative is the best approach either. I'll need to think through the pros and cons of each option carefully.

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Tony

5 months ago

This seems like a straightforward question about managing supply chain risk. I'd focus on evaluating the options to find an alternative source or build a stronger partnership with the current supplier.

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Karrie

5 months ago

This is a tricky one. There are a lot of audit types to keep track of. I'll have to eliminate the options that don't seem to fit the description and see what's left.

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Yolando

5 months ago

This seems straightforward, but I want to make sure I'm not missing anything. I'll read through the options closely.

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Jutta

5 months ago

Hmm, I'm a little confused about the details of the different financing plans and how they impact the capital structure. I'll need to carefully review the information in the passage to make sure I understand the key factors before attempting the calculation.

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Lemuel

9 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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Lizbeth

8 months ago

It's risky to rely on just one supplier from a flood-prone area.

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Lauran

8 months ago

I think finding an alternative source would be the best strategy.

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Afton

9 months ago

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

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Cory

10 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

8 months ago

D) Form partnership relationship with the current supplier

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Stanford

9 months ago

B) Find an alternative source to secure supply

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Joni

9 months ago

A) Source this group of products from only one supplier

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Malcolm

10 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

9 months ago

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

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Golda

10 months ago

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

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Emogene

10 months ago

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

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Lawana

10 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

10 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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