Free CIPS L5M6 Exam Dumps Questions & Answers

In a Sourcing Business Model, stakeholders must answer key questions to determine the right model.
Which are the most important?

• A.What factors form part of the total cost of ownership?
• B.What is the most appropriate economic model?
• C.What is the most appropriate contractual relationship?
• D.How much risk does the company wish to take?

Which of the following are potential consequences for an organisation which fails to identify and address risk? Select TWO.

• A.Corruption
• B.Damage to brand image
• C.Lawsuits
• D.Financial loss

Francis is a Category Manager within a large agricultural company which has over 10 categories. He believes that the Category with the largest spend (in £) is the most important category to the business. Is he correct?

• A.No - All categories are equally as important to the business
• B.Yes - Categories with larger budgets buy more important items
• C.Yes - A larger spend signifies that the category is buying larger volumes of items than other categories
• D.No - This fails to address the importance of the item to the organisation's service / product

What is contract leakage?

• A.The gap between proposed KPI levels and those actually achieved by the supplier
• B.When spend with a supplier is less than was forecast
• C.When spend with a supplier is more than was stated in the contract
• D.The gap between benefits identified in the pre-award stage of the contract and those actually achieved

In mitigating risks within the supply chain, which two factors should be assessed when evaluating potential risks?

• A.Cost
• B.Severity
• C.Likelihood
• D.Location
• E.People involved