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CIPS Exam L4M6 Topic 8 Question 35 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 35
Topic #: 8

[All L4M6 Questions]

Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

AStrategic

BLeverage

CNon-critical

DBottleneck

Show Suggested Answer

Suggested Answer: B

The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.

by France at Mar 17, 2024, 09:22 PM

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Francine

1 months ago

D) Bottleneck, all the way. I mean, who doesn't love a good bottleneck? It's like the traffic jam of the procurement world.

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Marget

9 days ago

User 2: I agree, a bottleneck strategy would be perfect for this situation.

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Joana

15 days ago

User 1: Bottleneck, definitely. It's the best way to manage high market risk with low spend.

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Tommy

2 months ago

Hmm, low spend but high market risk? Sounds like a job for the Leverage category to me. Gotta play those angles, right?

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Paola

2 days ago

Yeah, playing the leverage category could help maximize the benefits while minimizing the risks.

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Man

14 days ago

Strategic might be too risky for low spend, so leverage seems like the best option.

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Lavera

15 days ago

I agree, leveraging the situation could help mitigate the market risk.

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Latia

2 months ago

I'd go with D) Bottleneck. Gotta keep a tight grip on those high-risk suppliers, you know?

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Helene

9 days ago

Maybe we should consider both A) Strategic and D) Bottleneck for a balanced approach.

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Vilma

15 days ago

I see your point, but I still think D) Bottleneck is the way to go.

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Craig

1 months ago

I think A) Strategic might be a better choice in this situation.

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Julian

1 months ago

I'd go with D) Bottleneck. Gotta keep a tight grip on those high-risk suppliers, you know?

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Eve

2 months ago

Low spend but high market risk? That's a classic Bottleneck scenario if I ever saw one!

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Simona

2 months ago

Why do you think it should be Leverage?

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Jeniffer

2 months ago

I disagree, I believe it should be Leverage.

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Simona

3 months ago

I think the appropriate category would be Strategic.

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