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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q71-Q76):

NEW QUESTION # 71
SRT Ltd, a national construction firm, has acentralised procurement function. What is an advantage of this?

Answer: A

Explanation:
Centralised procurementenables bettercost coordination, standardisation, and leverage through bulk purchasing, ensuring consistency across sites.
Short cited extract: "Centralised structures coordinate savings and achieve economies of scale." (L5M7 Study Guide, p. 69) Reference:CIPS L5M7 Study Guide, p. 69.


NEW QUESTION # 72
Where two organisations atdifferent levelsof the supply chain share responsibilities, resources, and performance information to serve similar end customers, what is this known as?

Answer: D

Explanation:
Vertical collaborationoccursbetween different tiers(e.g., buyer-supplier) to coordinate capabilities for customer value. Short cited term: "vertical collaboration ... different levels/tiers" (L5M7 Study Guide, p.90).
Reference:CIPS L5M7 Study Guide, p.90.


NEW QUESTION # 73
What is theprimary motivationforoffshoring?

Answer: A

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).


NEW QUESTION # 74
Which of the following could be consideredadded valuewithin a supply chain? Select THREE.

Answer: A,C,E

Explanation:
The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: "added value may be created through quality, innovation and time-to-market." (L5M7 Study Guide, p.27) Reference:L5M7 Study Guide, p.27.


NEW QUESTION # 75
Which industry is most likely to usesupplier tiering?

Answer: B

Explanation:
Theautomotive industryusessupplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.
Short cited extract: "Automotive sector commonly applies supplier-tier structures." (L5M7 Study Guide, p.
115)
Reference:CIPS L5M7 Study Guide, p. 115.


NEW QUESTION # 76
......

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