CORE Dumps with Practice Exam Questions Answers

Planning and negotiating a contract while considering its impact on a supplier is an example of supplier relationship management. This practice involves maintaining a positive and strategic relationship with suppliers, ensuring mutual benefits, and fostering collaboration. By considering the supplier's position, the buying firm can negotiate terms that support a long-term, sustainable partnership.

References:

"Supplier Relationship Management: Unlocking the Hidden Value in Your Supply Base" by Jonathan O'Brien.

ISM guidelines on supplier relationship management.

CIPS resources on strategic supplier management.

Situation Context: The firm is developing a solicitation for materials for a new product launch, and existing suppliers are expected to respond.

Collaboration Need: Joint requirements development sessions involve collaborating with key stakeholders, including existing suppliers, to gather comprehensive requirements.

Detailed Understanding: This approach ensures a detailed and accurate understanding of the needs, leveraging the suppliers’ expertise and knowledge of their capabilities.

Alignment: It aligns the expectations of all parties involved, resulting in more precise and effective solicitation documents.

Outcome: This method increases the likelihood of receiving proposals that meet the firm's exact requirements and supports a successful new product launch.

References

ISM Professional Series: Supply Management Core

CIPS Guide to Procurement Requirements Gathering

In a highly competitive market with many pre-qualified suppliers for a well-specified item, a reverse auction is likely to yield the best value for HIJ, Inc. Reverse auctions drive suppliers to offer their best prices in a competitive bidding environment, potentially lowering costs for standard, commoditized items. This approach is especially effective when the item specifications are clear and there is sufficient competition. References: Procurement sourcing strategies, competitive bidding techniques, reverse auction best practices.

Issue During Negotiations: Team members are making mistakes and not following instructions shortly after negotiations commence.

Immediate Action: Calling a caucus allows the supply manager to pause the negotiations and address the issues immediately.

Reiterate Rules: Reiterating the negotiation rules and their importance helps in realigning the team and ensuring everyone understands their roles and responsibilities.

Preventing Further Issues: This approach aims to correct the team’s behavior and improve the chances of successful negotiations without removing stakeholders or ending the negotiations prematurely.

References

ISM. (n.d.). Best Practices for Leading Negotiation Teams.

CIPS. (n.d.). Effective Negotiation Strategies and Techniques.

When a supplier requests that the contract be based on its local currency, the first course of action for the supply manager is to assess the potential financial implications of this request. Exchange rate fluctuations can significantly impact the cost of goods and services over time. By performing exchange rate due diligence with the help of a financial advisor, the supply manager can understand the risks and potential cost variations. This involves analyzing historical exchange rate trends, forecasting future movements, and considering hedging strategies to mitigate risk. The supply manager can then make an informed decision on how to proceed with the supplier's request. References:

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.

Supply Chain Management Review articles on currency risk management