The Kraljic Model is most useful for which aspect of procurement?

• A.category management
• B.cost analysis
• C.risk management
• D.cost reduction

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Kyle Crant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?

• A.To ensure value for money is achieved
• B.To allow procurement to select the lowest price
• C.To enable a reduction in competition
• D.To deliver an agile process

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Togo Bongos is a manufacturer of percussion instruments, in particular of bongo drums. It requires electricity to run its factories and this is a major factor of cost impact. There are lots of suppliers of electricity in the market and there is no switching costs if Togo Bongos wanted to switch suppliers. What type of supplier is Togo Bongo's electricity supplier?

• A.strategic
• B.leverage
• C.routine
• D.bottleneck

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A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?

• A.Request for quotation
• B.Competitive tendering
• C.Statement of source requirements
• D.Direct negotiation

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Which of the following is characteristic of an adversarial relationship?

• A.The communication is always poor
• B.The price is more important than the quality of the product
• C.They are only used for one-off purchases
• D.The outcome of the deal is more important than the long term relationship

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