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NEW QUESTION 29 Why is it more difficult for buyers in the public sector to build relationships with suppliers?

• A. Buyer power is strong in the public sector
• B. Buyer power is weak in the public sector
• C. There are regulations prohibiting public sector buyers from developing relationships
• D. There are regulations that state competitive tender processes must be undertaken regularly

Answer: D Explanation: It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).   NEW QUESTION 30 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. It isn't possible to tell
• B. Option
  
• C. Option
• D. Option

Answer: D Explanation: This is category 'A' spend in the ABC model - they represent a large value and a small number of purchases / suppliers. See p.17 for more information on the ABC Analysis   NEW QUESTION 31 In a partnership who is responsible for decision making?

• A. The supplier
• B. The buyer
• C. The project steering committee
• D. Both the supplier and the buyer

Answer: D Explanation: The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152   NEW QUESTION 32 ...... DOWNLOAD the newest CramPDF L4M6 PDF dumps from Cloud Storage for free: https://drive.google.com/open?id=10gV526qMxQHHenZSw5apajuxeEgSxJ02