L4M6 - Practice Test 2 Flashcards
(16 cards)
What are the 6 stages of the Relationship Cycle?
1) On-boarding
2) Qualification
3) Segmentation and risk management
4) Performance management
5) Development and innovation
6) Phase out (if required)
Name the 4 sections of the Kraljic Matrix
Bottom left - Routine
Bottom Right - Bottleneck
Top Right - Strategic
Top Left - Leverage
What are the 4 quadrants of Mendelow’s Theory?
Bottom Left - Minimum Effort
Bottom Right - Keep Informed
Top Right - Manage Closely
Top Left - Keep Satisfied
What are the characteristic’s of relationship-based key performance indicators?
1) More qualitative measures
2) Do not measure the performance outcomes directly
In addition to using common metrics that relates to traditional KPIs, such as cosy and delivery, a buyer and supplier can also evaluate the performance of their relationships with the intention of fostering positive changes. A relationship-based KPI is different in that it measures the quality of the interaction between the parties, rather than the quantity of the output. Such as:
Trust
Power
Transparency
Communication
Commitment
Cooperation
What clause should be included in an agreement between 2 organisations looking to form a partnership?
Continuous Improvement Clause
What should Procurement Professionals do to convince senior leaders and other departments to support partnership sourcing?
1) Finding out the level interest and influence of the concerned stakeholders
2) Handling the changes in the organisation
3) Presenting the business case to senior management
What are the factors that usually motivate partnership relationships?
1) Ensuring security of supply
2) Access to the new market
What are the drivers for partnering with another organisation?
1) reduce costs
2) Need for improved product or services
3) Changing, unstable or new markets
4) Improved Performance
5) World-class standards
6) Reduced waste
7) Customisation or complexity
8) Market competition
9) Security of supply
10) Business development
11) Sustainability pressures
What are the advantages of partnering for the purchaser and supplier?
1) Cost savings
2) Investment
3) Competitive Advantage
4) Access the new markets
5) Reduced risk
6) Information and knowledge sharing
7) Shared resources
8) Innovation
9) Reduced waste
What are some essential factors for creating high performance teams?
1) Creating a shared sense of purpose
2) Streamline communication
3) Invest in employee development
What are the 5 methods that can be used to managing conflict?
1) Avoiding
2) Compromising
3) Accommodating
4) Competing
5) Collaborating
What is the name of the Act that protects the employment rights of workers that procurement should consider when proposing to bring a service in-house?
TUPE - The Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE.
What are important steps when sourcing a partnership?
Establish a clear foundation for the partnership with common objectives and expectations
Gain the top management’s support
What are some benefits of using Kraljic supply positioning model?
1) Better understanding of products’ importance
2) It helps to identify the optimum relationship for each supplier
What are some factors that make a buyer more appealing to a supplier?
- The buyer has a lading brand
- The buyer exercises a stringent code of conduct
What are the differences between relationship KPIs and traditional KPIs?
Relationship-based KPIs measure the quality of interaction between the parties, rather than the quantity of the output.
Relationship KPIs include: Trust, power, transparency, communication, commitment, cooperation.
Traditional include: Cost, Quality, Lead-time, Flexibility.
