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[Hardware] L5M6 Reliable Exam Cost | Discount L5M6 Code

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【Hardware】 L5M6 Reliable Exam Cost | Discount L5M6 Code

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CIPS Category Management Sample Questions (Q20-Q25):NEW QUESTION # 20
At which stage in the Procurement Cycle can most value be added?
  • A. Supplier selection
  • B. Specify requirements
  • C. Review
  • D. Negotiate and award contract
Answer: C
Explanation:
CIPS highlights that the review stage of the Procurement Cycle offers the greatest opportunity to add value.
This is because it involves assessing whether objectives have been met, identifying lessons learned, and capturing continuous improvement opportunities. While specifying requirements and supplier selection are critical, the review stage ensures that outcomes are measured against expectations and future strategies are refined. For example, reviewing contract performance may reveal contract leakage or highlight areas where better supplier engagement could drive innovation. This feedback loop transforms procurement from a transactional process into a learning system. By institutionalising review mechanisms, organisations improve their resilience and ensure that procurement strategies evolve with business needs and market changes.
Reference: CIPS L5M6 Study Guide, p.42

NEW QUESTION # 21
What is the purpose of a Category Board?
  • A. To develop and implement a category strategy
  • B. To mitigate all risks
  • C. To select the Category Manager
  • D. To approve spending over a certain amount
Answer: A
Explanation:
A Category Board [sometimes called a Category Council or Committee] is a cross-functional group of stakeholders responsible for overseeing the development and implementation of a category strategy. It brings together representatives from procurement, finance, operations, and other relevant departments to ensure that sourcing decisions align with overall business objectives.
While boards may also review spending or risk, their main role is strategic governance. They provide input into category planning, approve strategies, resolve conflicts, and ensure stakeholder buy-in. This collaboration is essential, as category management is a cross-functional discipline that cannot succeed if procurement operates in isolation.
Options A and B are too narrow, while option D is unrealistic-no body can "mitigate all risks." Instead, the board ensures risks are recognised and addressed within the strategy.
The study guide highlights the importance of such structures in embedding category management within an organisation's governance framework.
[Ref: CIPS L5M6 Study Guide, pp.614 - Category Boards and governance in category management]

NEW QUESTION # 22
Jonah is a Procurement Specialist responsible for a sub-category of work which includes procuring skilled labour for construction. Sub-categories can also be known as what within a Category?
  • A. Sets
  • B. Divisions
  • C. Lots
  • D. Commodities
Answer: D
Explanation:
Within Category Management, sub-categories are often referred to as commodities. These are narrower groupings within a category that focus on specific goods or services. For example, within the Construction category, commodities might include raw materials, subcontracted labour, or specialist equipment hire.
Recognising commodities helps procurement apply tailored strategies that address their specific market dynamics and risk profiles. It also provides clarity when developing category plans, as different commodities may require different sourcing and supplier management approaches. By managing at both category and commodity levels, organisations can strike a balance between broad strategic alignment and detailed tactical execution.
Reference: CIPS L5M6 Study Guide, p.52

NEW QUESTION # 23
Randoxx Ltd is a manufacturing company which has four main categories of expenditure:
* Category 1: The market of this category is highly innovative and has rapidly changed over the past five years. There are many suppliers who provide similar products at similar price points.
* Category 2: This category of spend is for highly specialised products and it is important to Randoxx that the products are carbon neutral. Because of this, there is a reduced number of suppliers who provide products to this category and Randoxx has little influence over the price that they pay.
* Category 3: This category of spend is for natural resources which are only found in very few parts of the world. Because of this Randoxx imports all of these items from one country abroad and currency fluctuations have a huge impact on the profit margin of this category spend.
* Category 4: This is a highly technical product which has a patent. It is used in the creation of laptops and phones and it would be impossible to make these with a different product. Due to the growing population Randoxx forecasts that demand for this product will increase.
Task:
Complete the table below by identifying each category's Porter's Force driver and STEEPLE factor challenge. Each response should be used only once.

Answer:
Explanation:

Explanation:
A close-up of a questionnaire AI-generated content may be incorrect.

Category 1: Highly innovative, many suppliers with similar products at similar price points
* Porter's Force: Competitive Rivalry - High
* STEEPLE Factor: Technological
Explanation (150-200 words):
Category 1 operates in a market that is highly innovative and subject to rapid technological change.
Innovation means suppliers are constantly developing new features or solutions, making technology the primary STEEPLE factor. Additionally, because there are many suppliers offering similar products at similar price points, competitive rivalry is intense. Buyers can switch easily, and suppliers must compete aggressively on features, pricing, and differentiation.
This combination of high rivalry and technological change creates both opportunity and risk for Randoxx.
On one hand, innovation drives new solutions that can be leveraged; on the other hand, it increases pressure to manage supplier relationships strategically. Randoxx must monitor technological trends closely while maintaining competitive sourcing strategies to manage this highly dynamic category.
(Ref: CIPS L5M6 Study Guide - Porter's Five Forces, p.112-116; STEEPLED Analysis, p.109)

NEW QUESTION # 24
Which of the following is an example of a supply chain risk? Select TWO.
  • A. A consultant provides bad advice to a client as they are unaware of a legislation change
  • B. Lightning strikes the organisation's HQ
  • C. A cargo ship is delayed due to strike action at a port of entry
  • D. Badly defined T&Cs in a contract cause a supplier to fail to deliver services effectively
Answer: C,D
Explanation:
Supply chain risks are risks that involve suppliers or logistics networks and have a direct impact on procurement performance. Poorly defined contract terms (Option A) may cause service failure, while delays due to port strikes (Option D) disrupt inbound logistics. These are classic supply chain risks because they are linked to supplier performance or external logistics factors. By contrast, lightning striking HQ is an internal operational risk, and a consultant giving poor advice is a professional service risk rather than a direct supply chain issue. For procurement, identifying supply chain risks is critical to developing mitigation strategies such as alternative suppliers, buffer stock, or stronger contractual clauses. Risk assessment frameworks like the likelihood/severity matrix help prioritise which risks to address first.
Reference: CIPS L5M6 Study Guide, p.56

NEW QUESTION # 25
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