CIPS Updated L4M6 Exam Questions and Answers by maverick

Explanation

The correct answer is ‘Sudden changes in the marketplace’ – this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163

The relationship qualifies as a partnership due to their collaboration, shared investments, and mutual efforts toward improvement, regardless of the absence of formal contracts. Partnerships focus on shared goals, trust, and strategic alignment rather than mere documentation.

Comprehensive and Detailed Explanation:

Succession issues pertain to the challenges associated with ensuring the uninterrupted supply of goods or services when transitioning from one supplier to another. Continuity of supplies is a primary concern, as any disruption can impact operations, customer satisfaction, and revenue. Effective succession planning involves:

Identifying Alternative Suppliers:Ensuring that backup suppliers are in place and capable of meeting requirements.

Knowledge Transfer:Facilitating the transfer of critical information and processes to new suppliers.

Inventory Management:Maintaining adequate stock levels during the transition period.

Other options listed, such as processing penalties, deletion of old specifications, and payment of old invoices, are administrative tasks that, while important, do not directly relate to succession planning.

Explanation

ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this