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CIPS L4M2 Exam - Topic 8 Question 31 Discussion

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?
C) Assign some of procurement jobs to user department
A) Source this group of products from only one supplier
B) Find an alternative source to secure supply
D) Form partnership relationship with the current supplier

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?

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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
9 months ago
Assigning jobs to user departments? Not sure that's a good idea.
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Eric
9 months ago
Wait, is it really that prone to flooding?
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Theresia
10 months ago
Sourcing from one supplier sounds risky.
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Tarra
10 months ago
I think forming a partnership could work too.
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Nguyet
10 months ago
Definitely should find an alternative source!
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Temeka
10 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
1 year 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
1 year ago
It's risky to rely on just one supplier from a flood-prone area.
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Lauran
1 year ago
I think finding an alternative source would be the best strategy.
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Afton
1 year ago
I agree with Shawnda, diversifying the supply source is important.
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Cory
1 year 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
1 year ago
D) Form partnership relationship with the current supplier
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Stanford
1 year ago
B) Find an alternative source to secure supply
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Joni
1 year ago
A) Source this group of products from only one supplier
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Malcolm
1 year 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 year ago
True, having multiple options can help us mitigate risks and ensure a steady supply of products.
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Golda
1 year ago
We could also consider finding alternative sources as a backup plan in case of any disruptions.
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Emogene
1 year ago
I agree. It's important to have a strong relationship with our suppliers, especially in this situation.
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Lawana
1 year 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
1 year 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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Refugia
1 year ago
D) Form partnership relationship with the current supplier
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Elke
1 year ago
B) Find an alternative source to secure supply
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Marta
1 year ago
A) Source this group of products from only one supplier
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Scarlet
1 year ago
I disagree. Forming a partnership with the current supplier could help us manage the risk better.
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Daniel
1 year ago
I agree with Brynn. It's risky to rely on just one supplier from a flood-prone area.
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Brynn
1 year ago
I think we should find an alternative source to secure supply.
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