A competitive advantage can be gained by doing what?

• A.Increasing your prices
• B.Engaging in market research
• C.Building better relationships with primary stakeholders
• D.Completing formal tenders for all buying requirements

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Rachel and Jacky work in the procurement department of Foddy Foods Ltd. They have been told by their CEO to build better relationships with strategic suppliers as this will create value for money for the company.
In what ways can value for money be achieved by building strong relationships with suppliers? Select TWO.

• A.Better payment terms
• B.Reduction of waste
• C.Innovation developed as part of collaborative projects
• D.Reducing costs

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George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?

• A.Use a weighted award criteria
• B.Only invite suppliers he knows will be able to provide good quality products which won't break
• C.Run a separate tender for a company who can provide reactive maintenance to the solar panels
• D.Evaluate the bids on price only as this is an important factor

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Beyond Say is a manufacturer of diamond rings. It sources a lot of different parts to create its products including diamonds, gold, cardboard boxes for the rings to go in, as well as stationary and copier paper for the offices. Although it doesn't buy many diamonds, these represent a large part of Beyond Say's spend. Which category of spend would diamonds represent?

• A.Option
• B.Option
• C.Option
• D.It isn't possible to tell

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Is it correct to suggest that the sole objective of partnership sourcing is to achieve the lowest acquisition cost?

• A.Yes, the concept of 'lowest acquisition cost' focuses on collaboration just like partnership sourcing does
• B.Yes, because the concept of 'lowest acquisition cost' ignores the quoted price and focuses on long-term cost factors
• C.No, because partnership sourcing considers 'lowest acquisition cost' together with aspects of supplier partnerships
• D.No, partnership sourcing is not applicable in one-off capital purchases where the concept of 'lowest acquisition cost' applies

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