L4M6: Supplier Relationships

L4M6: Supplier Relationships practice questions, page 3 of 3, with answer review and explanations.

Question 11

A procurement manager has established a project steering committee to undertake regular reviews and audits, and to ensure a successful buyer/supplier long-term partnership. The committee membership will comprise the procurement manager (chairperson), three of their cross-functional colleagues, the supplier’s partnership project manager, and an independent member. Which of the following is a potential disadvantage of the proposed committee structure?

  1. The procurement manager should not be the chairperson of the committee
  2. The size of the committee is too large as there should be a limit of three members
  3. The supplier does not have equal membership in the committee
  4. The committee includes an independent member

Question 12

An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances? 1. Where the potential pool of alternative supplier is small 2. Where the buyer has to continue working with the supplier during the termination period 3. Where the buyer has adopted an arm’s-length relationship throughout the contract 4. Where a material breach of the contract has been committed leading to the termination

  1. 1 and 2
  2. 1 and 3
  3. 3 and 4
  4. 2 and 3