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CIPS L5M7 Exam - Topic 1 Question 10 Discussion

Joe is a Supply Chain Manager at a car manufacturer in the UK. He plans rationalisation to streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.
D) Tier-skipping and E) Reducing the number of suppliers
A) Customisation
B) Supplier innovation
C) Collaborative inventory management

CIPS L5M7 Exam - Topic 1 Question 10 Discussion

Actual exam question for CIPS's L5M7 exam
Question #: 10
Topic #: 1
[All L5M7 Questions]

Joe is a Supply Chain Manager at a car manufacturer in the UK. He plans rationalisation to streamline processes and save money. Which tactics are forms of rationalisation? Select TWO.

Show Suggested Answer Hide Answer
Suggested Answer: D, E

Rationalisation includes reducing supplier numbers and practices such as tier-skipping to simplify the network and reduce cost/complexity. Short extract: ''rationalisation---reduce supplier base; consider tier-skipping.'' (L5M7 Study Guide, p.11)


by Dominic at Mar 07, 2026, 03:47 PM

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Jill
11 hours ago
Definitely! Collaborative inventory management also helps streamline.
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Gerri
6 days ago
I think reducing the number of suppliers is key. Less complexity.
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Cecily
11 days ago
Customisation seems more about personalization than rationalisation, right?
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Cherry
16 days ago
Totally agree with reducing suppliers, it simplifies things!
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Arlen
2 months ago
Wait, tier-skipping? Isn’t that risky?
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Reynalda
2 months ago
I think collaborative inventory management fits too!
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Tequila
2 months ago
Reducing the number of suppliers is definitely a form of rationalisation.
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Alpha
3 months ago
Supplier innovation can help, but is it really rationalisation?
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Xochitl
3 months ago
Customisation doesn’t really streamline anything, though.
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Kiley
3 months ago
Wait, tier-skipping? Isn’t that risky?
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Coletta
3 months ago
I agree, collaborative inventory management also fits.
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Hermila
3 months ago
Reducing the number of suppliers is definitely a tactic!
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Stevie
3 months ago
I recall a practice question where we had to choose between similar options, and reducing the number of suppliers was definitely highlighted as a key rationalisation strategy.
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Haydee
4 months ago
I think tier-skipping could also be a tactic, but I need to double-check if it really aligns with the goal of streamlining processes.
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Ocie
4 months ago
I'm not entirely sure, but I feel like collaborative inventory management might not fit the definition of rationalisation.
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Sommer
4 months ago
I remember discussing rationalisation tactics in class, and I think reducing the number of suppliers could definitely be one of them.
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