Which of the following KPIs is qualitative? 1. Openness and co-operation of supplier 2. Responsiveness of supplier 3. Customer satisfactory ratings 4. Cost management 5. OTIF deliveries
Correct Answer: B
Qualitative KPIs are based on pure opinions about how well or otherwise the goods are performingor the service is being delivered. Most often, these will be linked to, or convertedinto, a numerical measure. However, such satisfaction surveys often also include free fields for respondents to explain why they feel the way they do, and what they might have liked to have been different. On the other hand, quantitative KPIs are based on numerical measure with either definite number (e.g., actual number of orders incomplete or otherwise inaccurate during the time period) or as a percentage (e.g. number of inaccurate orders as a percentage of the total number of orders). Openness and co-operation means that supplier is open and co-operative in its relationship with purchaser, e. g., in terms of joint problem solving. This KPI is qualitative since it is measured by individual judgement. Responsiveness of supplier means the supplier responds rapidly to requests for information and support without having to be chased. It is measured by the number of times requests chased as a percentage of number of requests. It is a quantitative KPI. Customer satisfactory ratings means the level of customer's satisfaction. This KPI is measured by periodic survey and it is a qualitative KPI. Cost management is another quantitative KPI. It can be measured by comparing between the actual costs and the contractual costs. OTIF (one-time in-full) deliveries is a quantitative KPI. It can be measured by counting the inaccurate deliveries in the period or inaccurate deliveries as a percentage of total number of deliveries for period. Reference: CIPS study guide page 117-122 LO 2, AC 2.2
Question 67
Why would you use a non-disclosure agreement?
Correct Answer: A
A non-disclosure agreement is used to protect confidential information shared during discussions or collaborations. It ensures that sensitive data is not disclosed to unauthorized parties and maintains trust between contractual parties during tendering or negotiation. Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 3, Section 3.2.1 - Use of NDAs in procurement.
Question 68
Which of the following is used to detail the complex matter that may be verbiage to the main document?
Correct Answer: B
Without further explanation, a schedule may be deemed to form an integral part of the obligations of either or both parties. Obviously, the scope or binding nature of such schedule depends on the way it is referred to in the obligatory language of the main agreement. Accordingly, merely attaching the general terms and conditions of sale without explaining to which part of the sale they apply or which provisions apply does not subject a sale pursuant to the body text of the agreement to those general terms and conditions. Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor. Reference: - Schedules, annexes and exhibits - CIPS study guide page 22-26 LO 1, AC 1.1
Question 69
Maximum Score 1 Which of the following would you expect to see in an Invitation to Tender (ITT)?
Correct Answer: D
An ITT specifies what the buyer requires - including delivery milestones, scope, and evaluation criteria. Supplier rates and BAFOs are part of supplier responses, not ITT content. Reference: CIPS L4M3 Commercial Contracting - "Tender documentation content."
Question 70
In a contract, express terms and implied terms may contradict on the same issues. Under which of the following circumstances, implied terms will override express terms?
Correct Answer: D
Express terms are the terms of the agreement which are expressly agreed between the parties. Ideally, they will be written down in a contract between the parties but where the contract is agreed verbally, they will be the terms discussed and agreed between the parties. Implied terms are terms implied into the contract by the courts. They are not expressly set out in the contract but are taken to be as effective as if they were and as if they had been included from day one of the contract. The express terms and any implied terms together create the legally binding obligations on the parties. Express terms are explicit and will normally override implied terms unless the implied term is created by statute and the law states that it cannot be overridden. Reference: - Contracts: Express and Implied Terms - CIPS study guide page 126-132 LO 3, AC 3.1
