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CIPS
CIPS Level 5 Advanced Diploma in Procurement and Supply
L5M7
Achieving Competitive Advantage Through the Supply Chain (L5M7) Questions and Answers

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Viewing questions 11-20 out of questions

Questions # 11:

What is theprimary motivationforoffshoring?

Options:

Cheaper holidays

Exploit other countries’ resources

Cut costs

Improve cultural competence

Answer

Explanation

Offshoring typically seekscost reduction(e.g., labour arbitrage) while maintaining service/output levels; other motives are secondary. Short cited term: “cost reduction/advantages” (L5M7 Study Guide, domain 1.4 discussion).

[Reference:CIPS L5M7 Study Guide, Domain 1.4 (Offshoring and sourcing location)., ]

Questions # 12:

Which approach to quality involvesmanufacturing only what is required, when it is required?

Options:

Zero Defects

Total Quality Control

Total Quality Management

Just-in-Time

Answer

Explanation

Just-in-Time (JIT)manufacturing produces goodsonly when required, eliminating excess inventory and waste, ensuring smooth, efficient flow.

Short cited term: “make only what is needed, when needed” (L5M7 Study Guide, p. 30).

[Reference:CIPS L5M7 Study Guide, p. 30., , , ]

Questions # 13:

A company which usesClient Experience Strategyas part of its marketing tactic would provide which of the following?

Select TWO.

Options:

Listen to customer feedback

Provide a website

Personalise the user experience

Lower prices

Answer

A, C

Explanation

AClient Experience Strategyfocuses on enhancing theend-to-end customer journeyby understanding customer needs, personalising interactions, and incorporating feedback.

Short cited extract: “Customer experience strategy includes listening to feedback and personalising interactions.” (L5M7 Study Guide, p.183)

[Reference:CIPS L5M7 Study Guide, p.183., ]

Questions # 14:

In a supply chain, can adownstream supplierinfluence all aspects of quality includingcustomer perception?

Options:

Yes – downstream suppliers have the most power in the chain

Yes – customer perception is derived from the supplier’s inputs and specification

No – customer perception is influenced by other functions such as marketing

No – a downstream supplier has no control over quality at all

Answer

Explanation

A downstream supplier influencesmost aspects of qualitybutnot customer perception, which is shaped bymarketing and brand functions.

Short cited term: “except customer perception, influenced by marketing” (L5M7 Study Guide, p. 30).

[Reference:CIPS L5M7 Study Guide, p. 30., ]

Questions # 15:

According to theKraljic Matrix, suppliers are classified based on which TWO factors?

Options:

Cost impact

Risk impact

Position in the supply chain

Level of co-operation

Answer

A, B

Explanation

TheKraljic Matrixplotssupply riskagainstprofit (cost) impactto determine supplier strategy (leverage, bottleneck, routine, strategic).

Short cited extract: “Matrix axes – profit impact vs supply risk.” (L5M7 Study Guide, p. 83)

[Reference:CIPS L5M7 Study Guide, p. 83., ]

Questions # 16:

Which of the following are considered the‘Golden Metrics’used to measure performance?

Select THREE.

Options:

Safety

Total Cycle Time

Delivery Performance

Financial Stability

Ethics

Answer

A, B, C

Explanation

Thefive Golden Metricsof supply chain performance are:safety,quality,delivery performance,total cost, andtotal cycle time. They represent universally accepted indicators of operational excellence.

Short cited extract: “Golden Metrics – safety, quality, delivery, total cost, total cycle time.” (L5M7 Study Guide, p.123)

[Reference:CIPS L5M7 Study Guide, p.123., ]

Questions # 17:

In a typicalSupply Chain Quality Framework (SCQF), which of the following characteristics is likely to feature?

Select THREE.

Options:

Sustainability

Information

Continuous Improvement

Procurement

Marketing

Answer

A, B, C

Explanation

TheSCQFintegrates factors that promote long-term excellence across the chain:leadership, stakeholder commitment, sustainability, information management, and continuous improvement. These underpin effective quality and performance.

Short cited term: “key features include sustainability, information and continuous improvement.” (L5M7 Study Guide, p. 34)

[Reference:CIPS L5M7 Study Guide, p. 34., ]

Questions # 18:

Kerry is a new department manager at XYZ Ltd. The company has several manufacturing divisions that serve different market segments. She is considering introducingTotal Quality Management (TQM)only in her division. Is this a good idea?

Options:

Yes – TQM will ensure her division outperforms the other divisions

Yes – staff will respond positively to the change

No – TQM is a holistic approach and should be implemented company-wide

No – TQM is not suitable in a manufacturing company

Answer

Explanation

TQM is aholisticphilosophy requiringorganisation-wideadoption and leadership commitment; partial/isolated adoption undermines results. Short cited terms: “holistic,” “organisation-wide commitment” (L5M7 Study Guide, p.118).

[Reference:CIPS L5M7 Study Guide, p.118., ]

Questions # 19:

Mark, a logistics procurement manager, describes his chain astightly coupled. What does this mean?

Options:

There are many organisations in the supply chain

The supply chain is strong

There is a high level of interdependency in the supply chain

There is flexibility in the supply chain

Answer

Explanation

Atightly coupledsupply chain exhibitshigh interdependencebetween members; decisions by one partner affect all others.

Short cited extract: “Tightly coupled = high interdependence between supply-chain partners.” (L5M7 Study Guide, p. 82)

[Reference:CIPS L5M7 Study Guide, p. 82., ]

Questions # 20:

Which of the following can have adetrimental effecton supply-chain relationships?Select TWO.

Options:

Mistrust

Low spend

Lack of feedback

Market segment

Answer

A, C

Explanation

Relationship effectiveness is damaged bymistrustand poorfeedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: “trust,” “communication/feedback” (L5M7 Study Guide, p.93).

[Reference:CIPS L5M7 Study Guide, p.93., ]

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