CIPS Updated L4M6 Exam Questions and Answers by romie

Comprehensive and Detailed Explanation:

Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:

Transactional:Short-term, price-focused relationships with minimal collaboration.

Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.

While "contractual" refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. "Conspiratorial" is not a recognized relationship type in procurement contexts.

Comprehensive and Detailed Explanation:

Partnership arrangements often lead to price stability, as both parties work collaboratively to manage costs and avoid market volatility. Additionally, such relationships can result in cost savings through joint process improvements, shared investments, and economies of scale. While managing a partnership does incur relationship management costs, these are typically offset by the benefits gained. Supplier complacency is a potential risk but not an inherent advantage of partnerships.

Explanation

They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their 'core' business so they should retain this in-house

Explanation

In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40