CIPS L5M7 Exam - Topic 3 Question 3 Discussion

Actual exam question for CIPS's L5M7 exam

Question #: 3
Topic #: 3

[All L5M7 Questions]

Which industry is most likely to use supplier tiering?

AAutomotive

BAgriculture

CServices

DFinance

Show Suggested Answer

Suggested Answer: A

The automotive industry uses supplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.

Short cited extract: ''Automotive sector commonly applies supplier-tier structures.'' (L5M7 Study Guide, p. 115)

by Janine at Nov 02, 2025, 04:00 AM

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Reid

6 months ago

True, but automotive has more complex tiering systems.

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Lore

6 months ago

But what about B) Agriculture? They have suppliers too.

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Lewis

7 months ago

I agree, the automotive industry relies heavily on suppliers.

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Sheridan

7 months ago

Totally agree with A, it’s the most complex industry!

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Lenna

7 months ago

Wait, are we sure about A? Seems too obvious.

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Derick

7 months ago

C) Services? Not really feeling that one.

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Domonique

7 months ago

I think B) Agriculture makes sense too, though.

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Una

7 months ago

Definitely A) Automotive, they have so many suppliers!

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Karl

8 months ago

B) Agriculture? What kind of farmer needs to tier their suppliers? This question is a joke.

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Hoa

8 months ago

Haha, finance? That's a good one. Next they'll be asking about supplier tiering in the fashion industry.

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Brynn

8 months ago

I agree, the automotive industry is the most likely to use supplier tiering. They have to coordinate a vast network of suppliers.

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Fredric

8 months ago

I feel like finance could use supplier tiering too, but it seems less likely compared to automotive.

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Dorethea

8 months ago

I'm not entirely sure, but I remember a practice question mentioning that agriculture might also use tiering for different levels of suppliers.

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Dana

8 months ago

A) Automotive is the correct answer. Supplier tiering is a common practice in the automotive industry to manage complex supply chains.

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Fanny

9 months ago

I think A) Automotive is the best choice.

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Ramonita

9 months ago

I recall discussing this in class, and I think automotive was the example we focused on for supplier tiering.

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Theodora

9 months ago

D) Finance? Really? I think the person who wrote this question needs to go back to school.

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Luisa

9 months ago

I think the automotive industry is a strong candidate for supplier tiering since they rely heavily on parts from various suppliers.

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Dean

10 months ago

Based on what I know about different industries, I'd say the automotive industry is the best fit for supplier tiering. They have to coordinate a huge network of suppliers.

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Cristy

10 months ago

I'm a bit confused on this one. I know supplier tiering is about organizing suppliers, but I'm not sure which industry would use it the most. I'll have to review my notes.

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Kasandra

10 months ago

Supplier tiering seems like it would be really useful in the automotive industry to manage all those suppliers. I'm pretty confident that's the right answer.

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