SRM ULTIMATE QUESTION BANK

When considering how to capture the desired culture and values with an SRM program, what is the purpose of a team charter?

To gain clarity between the two teams on the behaviors required, so that the team becomes effective much more quickly

Which function in the organization provides sustained oversight of contracting activities, both before and after the contract is signed, to ensure the achievement of high value contract outcomes?

" Contract management" Please refer to page number 2 of the Script for this module and to Slide number 6. Contract management provides sustained oversight of contracting activities, both before and after the contract is signed, to ensure the achievement of high value contract outcomes. M2

Implementing best practice in SRM will help us to:

" Improve supplier relations to maximize opportunity" Please refer to page number 1 of the Script for this module and to Slide number 3. We must learn therefore how to harness the opportunity that a global supply base brings and part of that is to ensure we understand how to maximize these advantages through improved relationships with our suppliers. Implementing best practice in SRM will help us to do that. M2

Collaboration is the notion of:

" Joint working to achieve a common objective" Please refer to page number 4 of the Script for this module and to Slide number 8. Collaboration is the notion of joint working, the coming together of two or more people to achieve a common objective or goal. Understanding the value that collaborative principles can bring is one of the arts of SRM. M2

Considering the challenges of understanding differing cultures, Claude Gagnière the French writer said:

""A man who speaks three languages is trilingual. A man who speaks two languages is bilingual. A man who speaks one language is English"" Please refer to page number 7 of the Script for this module and to Slide Number 17. Claude Gagnière, a French writer once suggested 'A man who speaks three languages is trilingual. A man who speaks two languages is bilingual. A man who speaks one language is English'. It might be more appropriate to state that those people with English as a first language are less exposed to other languages on a daily basis and therefore less likely to be fluently conversant in another language. M17

In simple terms the culture of your SRM team, and that within the relationships with your key suppliers, can be summarized as:

"'The way we do things around here'" Please refer to page number 1 of the Script for this module and to Slide Number 3. In simple terms the culture of your SRM team, and that of the relationship with your key supplier is 'the way we do things around here'. M17

In today's business environment which of the following trends are making SRM more important? 1) Relationships are becoming more complex; 2) There is a need to access the full capability of our suppliers; 3) Customers regularly need to extract concessions from their suppliers:

"1 and 2 are true" Please refer to page 1 of the Script for this module and to Slide number 3. As businesses continue to shift from being fully integrated enterprises to using value networks to deliver for our customers, there are more supplier relationships to deal with, and those relationships are becoming more complex. We need those relationships to be highly effective, and we need to access the full capability of our suppliers. M1

A well written contract will act as an instrument for structured communication. What is the benefit of this: 1) Better understanding of our requirements, 2) Better adherence to governance, 3) Better allocation of risk, 4) removes the need for flexibility:

"1, 2, 3" Please refer to page number 1 of the Script for this module and to Slide number 3. The contract will act as an instrument for structured communication within both businesses, to enable us to brief our colleagues across functional departments on what the requirements and governance processes are. And of course, our trading agreements have the role of providing risk assurance, by putting boundaries around our risk for day one of the contract, and for ensuring that the risks arising from future changes are carefully considered, allocated, shared, managed and mitigated. M6

The primary purpose of an SRM business case is to? 1) Evaluate the importance of the investment in SRM, 2) Obtain approval for the financial investment required, 3) Define project outcomes and expected benefits, 4) Finalize which suppliers will be managed

"1, 2, 3" Please refer to page number 2 of the Script for this module and to Slide number 5. The primary purpose of the business case is to justify the resources and capital investment necessary to instigate and deliver a change to business operations. They are often thought of in terms of projects, where there is a defined end outcome that needs to be worked towards. M9

The advantage to a supplier from executive sponsorship of the strategic relationship is: 1) A level of authority to operate within our organization, 2) An open avenue for engagement, 3) A foundation of trust, 4) A narrow view of customer needs and strategies

"1, 2, 3" Please refer to page number 3 of the Script for this module and to Slide Number 6. SRM provides a strategic supplier with an engagement avenue and a level of sponsorship into our organization. This grants them a level of authority to operate within our organization. However, it must be remembered that this authority is only granted through trust and from a relationship with a solid foundation. It needs to be continually managed by the supplier relationship manager and also, not abused by the supplier. With sponsorship a supplier can gain a broad view of the customer's corporate needs, strategies and growth roadmaps. M18

In the context of SRM, which of the following should you be looking to capture in your scorecard? 1) Comparisons between supply chain relationships, 2) Relationship trends, 3) Supplier performance metrics, 4) Comparisons between various internal departments' performance.

"1, 2, 3" Please refer to page number 3 of the Script for this module and to Slide number 6. We also mentioned that you should be looking to capture in your scorecard the following: trends over time in those relationships, comparison to other supplier relationships and supplier performance against strategic goals. M14

Quantification of the relationship status with each supplier should take into account trends in the relationship and long term success metrics such as: 1) Return on investment, 2) Innovation delivered, 3) Derived relationship value, 4) Contract signature bonus

"1, 2, 3" Please refer to page number 3 of the Script for this module and to Slide number 8. Quantification of the relationship through a balanced scorecard approach also needs to take into account trends in the relationship and any long term success metrics such as value derived from relationship, innovation delivered and return on investment. M11

When considering governance in business, delegated authority can be defined as:

"The granting of differential levels of power to employees" Please refer to page number 1 of the Script for this module and to Slide number 3. The granting of differential levels of power to employees (often called delegated authority). M15

Trending the chosen metrics over time is useful in SRM because it allows us to: 1) Highlight which suppliers have a commitment to continuous improvement; 2) Shift our focus towards underperforming suppliers; 3) Identify risks to our business strategy; 4) Consider implementing contract change.

"1, 2, 3" Please refer to page number 4 of the Script for this module and to Slide number 9. Trending these metrics over time could help identify risk to your business and highlight a weakening of the cultural alignment of the two entities. We certainly should not move our focus away from these suppliers to others, our focus should remain constant and vigilant. M4

In the realm of SRM, the potential balanced scorecard reporting audience consists of? 1) Senior management, 2) Relevant stakeholders, 3) Industry media, 4) Executive sponsors

"1, 2, 4" Please refer to page number 2 of the Script for this module and to Slide number 4. Your audience for your balanced scorecard is most likely to include the stakeholder community for the suppliers, senior management and your executive sponsors. This way you can appraise these individuals of the progress being made with the supply base and the stakeholders can recognise the importance of their own delivery to the relationship. It is unlikely to include the media. M14

Which of these must a relationship manager consider when planning an exit strategy? 1) Does a contract exit schedule exist? 2) Does the supplier have an exit transition plan? 3) Can it be someone else's problem? 4) Does exit have a cost associated with it?

"1, 2, 4" Please refer to page number 3 of the Script for this module and to Slide Number 7. There should be a contract schedule devoted to exit and it will detail many of the deliverables that form the exit transition plan. For example, there may be data sets to hand over and a statement of when they should be refreshed. Ensure that your supplier's exit transition plan has a mirror plan stating how you will use their deliverables. Also, maintain an estimate of the costs for exit. M21

When implementing a contract, both the contract manager and you should consider the likely sources of change and monitor them. Common sources will include: 1) Price and charges, 2) Customer satisfaction indices, 3) Project manager changes, 4) Market volatility

"1, 2, 4" Please refer to page number 4 of the Script for this module and to Slide Number 8. When implementing the contract, both the contract manager and yourself should consider the likely sources of change and monitor them, such as, will prices or charges potentially change and if so, what can cause this? Is user satisfaction important? Are markets volatile or is significant organizational change likely? If the project manager changes, this is not in itself a cause for contract change. M20

Which of these are factors that will allow strategic relationships to drive value creation opportunities? 1) Governance; 2) Stakeholders; 3) Tendering; 4) Communications.

"1, 2, 4" Please refer to page number 4 of the Script for this module and to Slide number 10. Value creation requires a managed interplay between five factors; governance, stakeholders, supplier capability, communications management and around and through all of these sits relationships. M2

Which of the following are indicative of a relationship that is heading in the wrong direction: 1) Confused communication, 2) Confinement and pressure, 3) Mutual interest, 4) Low commitment:

"1, 2, 4" Please refer to page number 6 of the Script for this module and to Slide number 14. Relationships can go wrong. It all starts with poor or deliberately confused communication. One problem this leads to is a limitation of choice in your partner's delivery options. Such confinement will either lead to inflated prices or a belief from your supplier that you are only interested in your own objectives rather than the partnership itself. M7

Value creation in a successful relationship is founded upon which of the following: 1) An ability to manage conflict, 2) An ability to create synergies in the relationship, 3) Prescriptive solutions, 4) Driving process efficiency:

"1, 2, 4" Please refer to page number 8 of the Script for this module and to Slide number 19. The final action that drives a successful relationship is the creation of value. By creating value to both parties you are investing in creating synergies between the parties, you are looking to find ways of harmoniously resolving conflicts and also you are investigating how two parties' separate processes can be integrated to provide a seamless efficiency that minimises redundant costs. M7

The relationships that an SRM manager develops with their suppliers should be founded on: 1) The quality of the way your organization is serviced by your suppliers, 2) A rigid adherence to price and margin reduction, 3) Increasing the size of the pie from which revenue is harnessed, 4) How your customers will benefit

"1, 3, 4" Please refer to page number 3 of the Script for this module and to Slide number 7. The relationship should be about the quality of the way they service you and the importance that they give to your business drivers. It's not about continually driving down price. With an effective relationship you may be able to develop new product more quickly and efficiently. This may expand the market within which you operate, so there is less reliance on fighting for market share in a limited market place. You have increased the size of the pie from which you can drive revenue. Your supplier should realise that through the development of a long term, positive relationship with you, your customer will benefit. M7

If we want a contract to be a tool for management to use when things go wrong, then we should consider: 1) A primarily penalty-based contracting regime, 2) An incentive-based contracting regime, 3) Using the contract as an insurance policy, 4) Maximizing any compensation clauses:

"1, 3, 4" Please refer to page number 9 of the Script for this module and to Slide number 17. A move wherever possible from a primarily penalty-based contracting regime to a more incentives-based regime brings benefits; penalties may go towards compensating your costs when things go wrong to some extent, but you want to be in the situation where things go right not wrong, so how can you encourage that to happen? If you see a contract as an insurance policy, basically, something that is there as protection in case things go wrong, then, think carefully about the level of insurance you really want, need and are prepared to pay for. As a rule of thumb, assume that each protection, each risk and each liability you ask for is going to be costed for by the supplier and for which you will pay. So choose your protection wisely. M6

Which three actions create the environment for a successful relationship: 1) Collaborative innovation, 2) Focusing on your own objectives, 3) Managing relationship quality, 4) Driving value creation:

"1, 3, 4" Please refer to pages number 7 and 8 of the Script for this module and to Slides number 17,18 and 19. Driving a successful relationship can be summarised by three actions: collaborative innovation, managing the quality of the relationship and driving value creation. M7

In considering contract changes under an SRM program, which of the following are common causes of contract change? 1) Errors and omissions, 2) Project manager changes, 3) Technical specification changes, 4) Scope change

"1, 3, 4" Please refer to page number 2 of the Script for this module and to Slide Number 5. These three are all typical reasons for contract change. M20

Which of the following factors should you understand about your strategic suppliers? 1) Their organization structure; 2) Their industry partnerships; 3) Whether your Account Director will achieve their bonus; 4) The innovation that they can bring to your organization.

"1,2,4" Please refer to page number 2 of the Script for this module and to Slide number 5. So who are their executives, what is the organization structure, what is their financial position and how has it trended over the previous quarter, year and 5 years? What is their growth strategy? How important are you to that strategy? Who are their competitors and what is their market share? Who are their partners and what innovation can those partners offer that you would benefit from? M4

The recommended timescale for understanding relationship trends revealed in an SRM balanced scorecard is:

"13 months" Please refer to page number 7 of the Script for this module and to Slide number 14. Viewing the balanced scorecard for the previous month will provide an insight into how the relationship is performing, where the deviations are and what action must be taken to correct any trends which are showing movement away from the planned direction. When we look at trending, we recommend that you look at the past 13 months as this will give a view that goes just over the full year, and will enable potential longer term trends to be spotted and separated from seasonal variance. M13

In considering inviting a supplier into our SRM program, we need to be aware of how a supplier views the concept of SRM because: 1) They will automatically see it as a positive opportunity 2) They may question if it really will drive value 3) They may be afraid of our program 4) It may hinder their other aims with your organization

"2, 3, 4" Please refer to page number 1 of the Script for this module and to Slide Number 3. We must remember that we need to take an expansive and holistic view of SRM. We are, after all, trying to drive an aspiration of collaborative working between the customer and the supplier. As such we need to be aware of how the supplier may view an SRM implementation. Will it really drive value for the supplier? Are they afraid of its existence? Will it hinder their aims, or provide support? M18

If as an SRM Manager you work in a spirit of harmony and rapport with your suppliers, you are most likely to: 1) Hold your supplier to ransom, 2) Leverage the relationship strengths, 3) Look for opportunities to collaborate, 4) Explore potential new revenue possibilities for your supplier:

"2, 3, 4" Please refer to page number 2 of the Script for this module and to Slide number 5. Understand that without a spirit of harmony and rapport your actions could drive your supplier out of business and that your aim should not be to hold their business to ransom. Such an attitude may just hurt your own company's prospects. Look for the opportunity to collaborate, to leverage on the positive aspects of the relationship and how they can be applied to the downsides. M7

Which metrics are you most likely to discuss with a commodity supplier? 1) Delivery of innovative product and services; 2) Customer satisfaction; 3) Escalations and issues; 4) Orders completed on time.

"2, 3, 4" Please refer to page number 5 of the Script for this module and to Slide number 12. When you derive the metrics for measuring the commodity supplier, these should be fed back to those suppliers, as a good commodity supplier will be looking for opportunities to grow their business relationship with you. So the metrics should include at a minimum customer satisfaction, percentage of orders completed on time, escalations and issues. M4

Causes of disputes vary from contract to contract, but in simple terms, there are how many underpinning causes for contract dispute?

"3" Please refer to page number 2 of the Script for this module and to Slide Number 5. The causes of disputes change with every contract. In simple terms, there are three underpinning causes of contractual dispute: 1) Ill-feeling between the contracting parties, 2) Miscommunication by poorly made and maintained contractual documentation including the content, construction, management and retrieval of contractual records, 3) Departure from agreed processes, procedures or standards, in contract or at law. M19

In a recent IACCM survey what percentage of companies said they had problems with cultural issues when dealing with companies in the Asia Pacific region?

"68%" Please refer to page number 8 of the Script for this module and to Slide Number 15. Recent IACCM research suggested that companies headquartered in Europe and North America in particular seem to have difficulties dealing with cultural problems. 68% of companies said they have problems with cultural issues when dealing with companies in the Asia Pacific region. This was particularly true of companies headquartered in North America. More than a third of companies surveyed said they have experienced language and culture problems in Europe, and almost half of those companies are themselves based in Europe. M17

Internal delivery as a sourcing approach is categorised as:

"A "let's build it" decision" Please refer to page number 3 of the Script for this module and to Slide Number 6. Internal delivery is a 'let's build it' decision. The other answers are related to purchasing from the marketplace. M3

In the context of relationships with suppliers, a Master Agreement is:

"A contract with a set of relational terms under which other contracts may be formed" Please refer to page number 4 of the Script for this module and to Slide Number 9. Master Agreements set the framework for the overall relationship and contain a range of standard terms which will typically apply to all or most of the transactions or contracts that subsequently arise. M21

When used in an SRM program measurement process, an SLA should be:

"A definition of the intended performance expected over a defined period of time" Please refer to page number 4 of the Script for this module and to Slide number 9. A Service Level Agreement (SLA) states the intended performance that the customer of a service can expect over a defined period of time. It aggregates the successful delivery of a repetitive task, often allowing some flexibility to the service provider such that short term deterioration in service provision does not mar an otherwise effective service. M13

A quality benchmarking scope statement does not require:

"A description of every single issue that has arisen to date" Please refer to page number 4 of the Script for this module and to Slide number 8. A quality scope statement will outline at the minimum the following: Are we going to focus on efficiencies, cost, quality, driving future strategy? What are the issues that we actually trying to address and therefore how far do we want to investigate? Have we mapped, correctly identified and are managing our stakeholders? Do we need to involve external partners, use external resources, data sets, discuss with peers, market leaders our suppliers? M8

When drafting an SRM team charter, which of these is NOT a recommended section heading?

"A list of key staff and full contact details" Please refer to page number 3 of the Script for this module and to Slide Number 8. When creating a team charter (you and the supplier are the team), remember that it is an individual document to be set and agreed between you and the supplier in question. Debate and agree the content with your supplier under these headings for example: first requirement for your team charter is to agree the purpose of the team and the team's objectives; secondly, what are the strengths and development needs of the team; thirdly team process management; and, the decision making procedure. M17

In segmenting suppliers, a developing supplier is one that has:

"A low cost to exit and a high strategic alignment " Please refer to page number 6 of the Script and to Slide Number 13. A developing supplier is one that has a low cost to exit and a high strategic alignment. The first thing to note is that there may still be a low cost to exit, but the alignment of their business to your strategy has increased through shared commitment. You see each other as more than just a relationship based on commodity purchases. M4

In defining the critical traits of a strategic supplier a critical feature is that it is a supplier that delivers:

"A mutually beneficial, critical service that supports your business" Please refer to page number 3 of the Script for this module and to Slide number 7. First and foremost a strategic supplier is one who supports or delivers a service that is critical to your business. M4

A Developing supplier is one who delivers:

"A relationship that is aligned to your business with a steadily increasing spend" Please refer to page number 6 of the Script for this module and to Slide Number 13. With a Developing supplier there may still be a low cost to exit, but the alignment of their business to your strategy has increased through shared commitment. You see each other as more than just a relationship based on commodity purchases. Spend is most likely increasing. M4

What is rapport when considering SRM communications with an audience?

"A sense of mutual trust and respect" Please refer to page number 6 of the Script for this module and to Slide Number 13. Rapport is where you have established with your audience a sense of mutual trust and respect. M16

In a business context governance specifies how organizational decisions lead first to:

"A set of defined expectations for the employee base" Please refer to page number 1 of the Script for this module and to Slide number 3. In a business context governance specifies how organizational decisions lead to a set of defined expectations for the employee base. M15

What legal contracting form approach should be used for a transactional offering such as a commodity product or service?

"A simple purchase order or electronic ordering process using our standard terms should suffice" Please refer to page number 4 of the Script for this module and to Slide number 8. A simple purchase order or electronic ordering process should be used. M6

What is a Balanced Scorecard?

"A strategic planning management system" Please refer to page number 1 of the Script for this module and to Slide number 3. The Balanced Scorecard Institute defines the balanced scorecard as a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. M14

A long term contract, with high spend, executive management focus, full commitment to partnership on both sides and mutual alignment to strategy, best describes:

"A strategic supplier who understands their criticality to your success" Please refer to page number 3 of the Script for this module and to Slide number 7. With a strategic supplier, a long term contract is likely to be in place, with penalty clauses, termination clauses and so on, there is likely to be a high cost to both sides when the relationship reaches termination. So it is in the keen interest of both parties to ensure that the relationship runs smoothly and stays on the focus of the shared strategy and vision. M4

Your role as an SRM manager is:

"A two sided activity, meaning your role is to manage the relations between your internal and external stakeholders" Please refer to page number 1 of the Script for this module and to Slide Number 4. As we have seen throughout the modules Supplier Relationship Management is a leadership process and one that conducts the interactions between suppliers and the company they work for. A supplier relationship manager is an individual with the capability to influence, drive and cajole a wide stakeholder community towards the delivery of a common purpose and ambition. M16

Effective communication can be best described as:

"A two way activity" Please refer to page number 1 of the Script for this module and to Slide number 3. Communication is a two way process, it is about ensuring that the information imparted has been received and understood as intended. So, effective communication must be described as a two way activity. M12

Once an SRM program is in place, clarifying roles and responsibilities within a governance framework will be seen by a responsible supplier as what?

"A way to maintain their value proposition" Please refer to page number 5 of the Script for this module and to Slide Number 9. So to maintain the value proposition a strategic supplier will be keen to clarify roles and responsibilities and wrap these into a governance framework. So don't shy away from introducing the subject with your strategic supply chain. Those suppliers that do shy away from some implementation of governance may not be suppliers who you should choose for an SRM program. M18

It is becoming a matter of core competence for organizations to be able to:

"Attract and effectively manage the best trading partners" Please refer to page number 2 of the Script for this module and to Slide number 4. It is becoming a matter of core competence for organizations to be able to attract and effectively manage the best trading partners with contracting and contract management. M6

The SRM manager's role is primarily:

"About leadership and influencing desired behaviours" Please refer to page number 1 of the Script for this module and to Slide Number 4. The SRM management function exists to also understand the strategy of the business, the mission and values, its desired behaviours and activities so that they can orchestrate a path by which the supplier can be aligned to these. Unfortunately, because this may be seen internally as 'fluffy' or imprecise, it may create a significant amount of scepticism. M16

Should the exit transition plan with a strategic supplier be included in a contract schedule?

"Absolutely always" Please refer to page number 3 of the Script for this module and to Slide Number 7. There should be a contract schedule devoted to exit and it will detail many of the deliverables that form the exit transition plan. For example, there may be data sets to hand over and a statement of when they should be refreshed; or there could be rights to acquire certain assets, or obligations to share information, designed to smooth transition to a new supplier, or for work to move back into your business. So, check that these are being produced to prevent rushed work later on. M21

In selling the benefits of an SRM program, which of these is a benefit of being a 'customer of choice'?

"Access to innovation earlier in the lifecycle" Please refer to page number 3 of the Script for this module and to Slide number 7. Becoming that customer of choice should allow you to tap into valuable supplier led innovation, possibly in early phases when it is still leading edge and able to drive your own competitive advantage. M5

When managing stakeholders we need to think about any negotiations that we may have with them in order to support our SRM goals. If in those negotiations we have a low concern for the negotiation outcome but a high concern for maintaining the relationship with the stakeholder then we should adopt which style?

"Accommodation" Please refer to pages number 4 and 5 of the Script for this module and to the diagram on Slide number 11. The principles of the 5 negotiating styles discussed in the module 'Implementing your SRM Program' are important when managing your stakeholders. These are: Avoidance; Competition; Accommodation; Compromise; Collaboration. M10

There are five main negotiation or behavioural styles that we have considered. These are:

"Accommodation, Competition, Avoidance, Compromise, Collaboration" Please refer to page number 3 of the Script for this module and to Slide number 9. In an earlier module in the course, we mentioned the 5 different negotiation or behavioral styles that can be adopted, to suit the situation you face and these are those five styles. M22

Which of the following skills should an SRM manager have?

"Adaptability" Please refer to page number 3 of the Script for this module and to Slide Number 7. As an SRM you need to be fully effective at these self-management skills, such as adaptability, orientation, initiative and transparency, as your wide stakeholder community will have vast and differing requirements that each need to be evaluated and organised into a framework that is advantageous to both your company and your suppliers. M16

Which stage was added in 1977 to Bruce Tuckman's model for group or team development?

"Adjourning" Please refer to page number 1 of the Script for this module and to Slide Number 4. In an earlier module we discussed Bruce Tuckman's model for group or team development. The four stages we saw were: 'forming, storming, norming and performing'. In 1977, after some revision, a fifth stage was included entitled Adjourning. M21

What is the most appropriate approach to dealing with suppliers of low end, simple, low cost purchases?

"Adopt a commodity approach and drive hard for the best price" Please refer to page number 2 of the Script for this module and to Slide number 5. With your low-end, simple, low-cost purchases you will need to adopt a commodity approach and drive hard for the best price. M1

In an SRM program, who is a stakeholder?

"All of the above" Please refer to page number 1 of the Script for this module and to Slide number 4. A stakeholder is anyone who may be affected by the SRM program. They are the people with whom you need to have a targeted communications plan. You need to ensure that you understand what issues or activities that these individuals undertake, may be affected and altered by the move towards managing strategic suppliers through SRM. M11

Within an SRM program, for true strategic relationships, including termination clauses and exit strategies in agreements is:

"An essential element of every agreement" Please refer to page number 1 of the Script for this module and to Slide Number 2. It is wise to remember that any commercial relationship can end, so start preparing for that from the moment the relationship starts. There may be occasions when executives believe that a partnership is of such fundamental importance that 'it cannot be allowed to fail' - and therefore no exit strategies are discussed. Yet as AT&T and BT discovered when they took this approach over their joint venture to form Concert, such an approach can carry a heavy cost. The relationship did fail - and it took several years to agree its termination. M21

Suspending a supplier from work due to slow progress, withholding payment and then engaging others to perform the work of the supplier, with the intent of charging this work back to the supplier, is an example of a monetary problem becoming:

"An operational based dispute" Please refer to page number 3 of the Script for this module and to Slide Number 7. It is evident that on-going monetary problems can transfer into operational disputes. Some examples include: 1) Your company suspending a supplier from work due to slow progress, withholding payment and then engaging others to perform the work of the supplier with the intent of charging this work back to the supplier, 2) A supplier who is not compliant with their Service Level Agreements may be subject to service credits imposed or liquidated damages, if that contractual provision exists, 3) A supplier accelerating work based on the apparent direction of a customer in order to meet the contractual milestones or date for practical completion and ultimately claiming for payment for extra resources required for the acceleration. M19

Which of the following factors should be thoroughly understood about each commodity supplier?

"Are they cost efficient by comparison to the market in which they operate." Please refer to page number 5 of the Script for this module and to Slide number 11. Are they cost efficient by comparison to the market in which they operate and give you warmth and comfort that you are obtaining good value. One consideration could be whether or not they include delivery charges within their pricing structure or levy this as a separate value on each purchase order raised? The first three choices really describe a strategic supplier. M4

When managing stakeholders we need to think about any negotiations that we may have with them in order to support our SRM goals. If in those negotiations we have a low concern for the negotiation outcome and a low concern for maintaining the relationship with the stakeholder then we should adopt which style?

"Avoidance" Please refer to pages number 4 and 5 of the Script for this module and to the diagram on Slide number 11. The principles of the 5 negotiating styles discussed in the module 'Implementing your SRM Program' are important when managing your stakeholders. These are: Avoidance; Competition; Accommodation; Compromise; Collaboration. M10

When considering the implementation of your SRM program, what tool helps the measurement and representation of the relationship status with each strategic supplier?

"Balanced scorecard" Please refer to page number 3 of the Script for this module and to Slide number 8. As part of SRM implementation, measurement needs to be introduced at this point through a balanced scorecard or similar performance management and reporting tool. M11

By understanding projects on a stakeholder's radar screen, you will:

"Be better informed and maintain stakeholder confidence" Please refer to page number 2 of the Script for this module and to Slide number 6. By understanding projects on a stakeholder's radar, you will keep informed and allow yourself to maintain the confidence of your stakeholders as they understand you have knowledge of their business environment. M10

A good SRM manager aims to:

"Be transparent in their actions" Please refer to page number 4 of the Script for this module and to Slide Number 9. By creating a sense of transparency in our actions, and by being able to adapt logic to our thought processes, we can engender a positive view that the path we are on is correct. We create an alignment between the stakeholders and the goals we have set ourselves. M16

It can be said that a part of SRM is: 1) Finding opportunity that aligns with your corporate business plan, 2) Maximizing added value from strategic relationships

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide Number 3. As an SRM manager, one of your roles is to maximize opportunity, maximize the added value that develops in a strategic relationship. M20

When considering the personal attributes of an SRM Manager, developing what is a key attribute for an SRM manager? 1) Trust, 2) Openness

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide Number 3. We have seen frequently throughout the modules how importance trust, openness and honesty are to building relationships. Without these it is hard to interact with the other party. M16

Why do we need to focus on supplier relationships in today's business context? 1) There are more supplier relationships to deal with; 2) Supplier relationships are becoming more complex.

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 3. As businesses continue to shift from being fully integrated enterprises to using value networks to deliver for our customers, there are more supplier relationships to deal with, and those relationships are becoming more complex. We need those relationships to be highly effective and we need to become a 'customer of choice' for our strategic suppliers, so that those suppliers bring us their best ideas and initiatives, and that they bring them to us first, to give us competitive advantage in our markets. As we contract more out to suppliers, we will become judged in part by our flexibility and adaptability to our commercial relations. M1

When is it appropriate to take a benchmark? 1) If we want to compare ourselves against our competitors 2) When we want to confirm prices being charged by our suppliers are competitive

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 3. By having a benchmark, we can determine if there is a problem. In such instances a benchmark, which may be a comparison to external studies, may lead to a full internal review of processes to see how they can be improved. Similarly, we may choose to benchmark our performance when a trigger event identifies that there may be room for improvement (maybe there has been too many escalations recently within a strategic account). M8

In considering supplier segmentation, which approach will support business units in having efficient contracts and efficient relationships with the supply chain? 1) Choosing specific relationships to develop further; 2) understanding the goals of the procurement function in supporting the business.

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 3. Choosing to develop relationships that make more sense in the context of supplier roles, the goals of the procurement organization as a whole, how that maps to supporting the different business unit strategies and supporting business units is a fundamental requirement of the contracting function. Without this aim, our business units will have inefficient contracts and supply relationships. M5

In a strategic relationship, a contract exists to achieve the aim of: 1) Providing mutual understanding and alignment of goals, 2) Sharing the allocation of risk:

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 3. In a strategic relationship, it is no longer sufficient to view a contract as an instrument to enforce action on the other side. We need mutual understanding and alignment of goals in our contracting, as we do in the strategic relationship as a whole. M6

When we focus on managing in depth only a selection of our company's supplier relationships we can: 1) Cherry pick the products and services that give us the greatest competitive advantage; 2) make a coordinated investment in how we manage our supply chain.

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 3. We can consider segmentation as a coordinated investment in how we manage the supply chain. It is unlikely that we can cherry pick specific products and services. M5

Factors that may be considered in a segmentation exercise include: 1) Alignment to company offerings; 2) Number of purchase orders raised.

"Both 1 & 2 are true" Please refer to page number 5 of the Script for this module and to Slide number 10.We would also consider their alignment of services and products to our company offerings as previously described and also their performance against contract and relationship metrics over time..... But what else can we consider for a segmentation exercise? We could consider factual evidence of the contractual relationship with the supplier in question, we could also consider the amount we spend with a supplier, including for example the number of purchase orders we raise.

In considering the scope of your SRM program, knowledge of your internal customers for each supplier will allow you to: 1) Understand the business drivers of different areas of your company, 2) Identify other areas where your supplier should have a relationship

"Both 1 & 2 are true" Please refer to page number 1 of the Script for this module and to Slide number 4. Knowing the internal customers for each supplier allows you to understand the direction and developmental ideas of different areas of your business. You can then use that information to create and maintain leverage over your supplier. You may well also identify areas that your supplier has yet to touch and by introducing these to your supply base, you will further increase the leverage you have, and probably increase the commitment from your supplier; they will recognise that you are actively looking to drive revenue towards them. M9

Which challenges do suppliers face when there is no SRM program in place: 1) Lack of familiarity with which of their products and services support the customer's business, 2) Engaging in excessive communication through lack of coordination

"Both 1 & 2 are true" Please refer to page number 2 of the Script for this module and to Slide Number 5. They will use a mixture of cold calling (be it telephone, email or other marketing materials), using network connections and showcasing many products to see what is of interest, what sales methods work and which do not. Essentially it's a shotgun approach aimed at seeing what meets the customer's aspirations. M18

The value of an SRM function to an organization is that it can 1) Directly create income, 2) Indirectly create income

"Both 1 & 2 are true" Please refer to page number 2 of the Script for this module and to Slide Number 5. Yet SRM as a standalone discipline is only a relatively recent addition to the portfolio of functions in supply chain management, however in addition to the other functions within the supply chain, the SRM can directly and indirectly generate income. Most of the supply chain is usually focussed on savings, negotiated discounts and contractual rigour, but the SRM will orchestrate and allow others with whom they interact to achieve even greater value than they could in isolation. m16

Which of the following might indicate a poor relationship with your suppliers? 1) You are seen as a difficult customer, 2) They only focus on volumes and not on exploring how to meet your business strategy

"Both 1 & 2 are true" Please refer to page number 3 of the Script for this module and to Slide number 7. It's not about continually driving down price. There will come a time when even the most benevolent supplier will say 'enough is enough' the margin being made is no longer worth the effort. The last thing you want is to have to find a new supply chain in this instance; you may be viewed as a difficult customer. M7

If the following are evaluation criteria that could be used to determine the strategic supply base? 1) The criticality of the relationship to both your organization and each supplier; 2) Supplier spend.

"Both 1 & 2 are true" Please refer to page number 3 of the Script for this module and to Slide number 7. The strategic supplier needs to clearly understand their criticality to your success and the competitive advantage that they bring to you, respect that fact and then act appropriately. A high spend component probably (but not necessarily) exists in the relationship as well, and for these reasons it is important to manage the strategic supplier effectively to ensure you get good value for the financial investment. M4

With an SRM program in place, customers can help suppliers to: 1) Develop new products and solutions 2) Create new markets.

"Both 1 & 2 are true" Please refer to page number 4 of the Script for this module and to Slide Number 8. So in markets with forever evolving demands, the supplier will be keen to get its research and development teams in front of their eager and involved customers; and that is where effective SRM helps. You can support the definition of what the future needs in the market are and be involved with how they can be both facilitated and satisfied. M18

If the market conditions under which our organization operates, change whilst we are conducting an SRM benchmarking exercise, the impact could be that: 1) Our benchmarking project may no longer be relevant, 2) our benchmarking project may benchmark the wrong processes

"Both 1 & 2 are true" Please refer to page number 4 of the Script for this module and to Slide number 7. Changing business conditions is one of the reasons why benchmarking projects fail. Others include: only investigating metrics, a poorly defined scope, lack of appropriate data. M8

A dispute will often result in the disruption of our commercial relationships; therefore the best way to maintain our commercial relationships is: 1) To prevent disputes from occurring in the first place, 2) Instil formal governance processes to manage the relationship:

"Both 1 & 2 are true" Please refer to page number 5 of the Script for this module and to Slide Number 12. Progression to dispute is often a journey to disrupted commercial relationships with the project and associated workload becoming dominated by disputes. It is necessary to recognise, manage and resolve these disputes before any escalation affects the individuals involved or the project delivery. There is no doubt that the best way to manage disputes is to prevent them from happening in the first place. The module on relationship governance will help you to crystallise an environment where the relationship is aimed at opportunity exploration rather than filing for claims. M19

Part of being an SRM Supplier manager means changing your communication style to reflect your audience. This means: 1) Knowing the desired outcome of any conversation, 2) Analysing and refining our messages

"Both 1 & 2 are true" Please refer to page number 5 of the Script for this module and to Slide Number 12. The first key to effective communication is to only start once you know what the desired outcome should be. If you are unsure what you want your audience to take from your communication, then STOP and reflect on the message you are portraying. There is no point continuing if your message will be misunderstood or misinterpreted, as you will confuse your audience and will result in a weakening perception of your ability to direct a relationship. So analyze your message, and once you have refined and confirmed its intention, then put it into the public domain. M16

Why should you give clear and specific feedback to a supplier you are ending a contract with? 1) So they can understand what they did not do well, 2) So they can improve for other tender activities they have:

"Both 1 & 2 are true" Please refer to page number 6 of the Script for this module and to Slide Number 13. This will help your supplier to understand and learn what they did not do well enough, improvements they can use for other tender activities they have, and potentially with a view that the business they lost from yourself is re-winnable, just not at this moment. M21

In working with your strategic suppliers, which of these two principles should lead to the development of innovative opportunities for your company? 1) Developing trusted supplier relationships, 2) Being an excellent networker

"Both 1 & 2 are true" Please refer to page number 6 of the Script for this module and to Slide number 14. A study by HEC Paris showed that 88% of innovation managers look to their suppliers to collaborate in delivering the innovation that they need. There are other routes for innovation, as shown on this slide, but in the main, by developing trusted supplier relationships, by becoming an excellent networker you will instinctively know how and where to match need with supply. M11

In creating a Business Case for SRM, a stakeholder map is often created to achieve what aim? 1) Define which information needs to be shared with which stakeholder, 2) Define how frequently you need to interact with different stakeholders

"Both 1 & 2 are true" Please refer to page number 7 of the Script for this module and to Slide number 14. Once you have identified your stakeholders you need to determine how you are going to manage them; different stakeholders will require different information and differing frequencies of interaction. M9

When developing an SRM Business Case and identifying the rationale for the SRM program, the program can be described as an appropriate process where? 1)previous supply methods and processes need transforming to deliver better business benefits, 2) Corporate strategy has changed, necesitating supplier realignment and change

"Both 1 & 2 are true" Please refer to page number 9 of the Script for this module and to Slide number 18. When it comes to defining when SRM may be an appropriate process, the primary aspect to consider is the need for change. This need for change could be realignment to a new business strategy, where old methods and processes require transformation and hence the relationship with and delivery of the suppliers needs to be realigned to meet that new strategy. M9

Which is a problem a supplier will suffer when there is no SRM is in place? 1) Having difficulty accessing everyone inside a customer they want to 2) Having a disjointed approach to dealing with the customer.

"Both 1 and 2 are true" Please refer to page number 2 of the Script for this module and to Slide Number 5. An account manager is hampered in their ability to drive the profitability of the supplier in the event of a lack of supplier engagement activities from the customer, either directly from the SRM, or a procurement function, where SRM does not exist. M18

Which of the following are common problems for a supplier at the start of a contract with a new customer: 1) They do not understand how the company works 2) They are forced to navigate the intricacies of the organization?

"Both 1) and 2) are correct" Please refer to page number 2 of the Script for this module and to Slide Number 5. Initially it is likely that the supplier will feel that they are working as if blindfolded. It will be difficult to get the full customer view; this is more often earned by delivering successfully on project after project from a long history. At the outset the supplier will not understand your company; they are forced to find their own methodology for navigating the intricacies of your organization, there is no-one to guide them. M18

To access the value that sellers and purchasers commonly leave on the table during negotiations, we should use which tactics? 1) Leverage the difference between us and them; 2) Cooperate to reduce risk and improve the utilization of resources

"Both options 1 & 2 are true" Please refer to page number 5 of the Script for this module and to Slide number 12. We need to leverage the difference between us and them (the reason we chose them is that they are different to us, because of their skills, research capabilities, product and service base, global reach, even a different company culture - it's important that we don't try to drive out these differences and try to make them more like us, but rather ask how can we leverage the differences to access the hidden 42% of value?). We also need to cooperate to reduce risk and improve the utilization of resources. We need to work as an integrated team with a single focus on value creation. M1

In considering contract changes under an SRM program, who can request a change?

"Both your organization and the supplier and also third parties" Please refer to page number 3 of the Script for this module and to Slide Number 5. Either side can initiate a change request and additionally other parties may request a change, for example, the customer's customer, partners in a training agreement, major subcontractors. This may not be your supplier's problem, but it is something you will need to evaluate. M20

You believe that the contract templates used with your major suppliers are so complex that they are substantially increasing negotiation times and impacting supplier relationships. You decide to take action by benchmarking and you will firstly:

"Build a business case to identify the manner in which you want to investigate the template problem" Please refer to page number 2 of the Script for this module and to Slide number 5. You should in the first instance build a business case. The business case that you would need to develop should clearly state the purpose and intent of the benchmark and what will be focussed on. Whatever the aim, it should be specific and have boundaries in order to maintain focus on the objectives at hand. Once it is approved you may choose any or all of the other answers as an appropriate way forward. M8

Which type of sourcing model is defined by a greater responsibility on the customer to be involved and a need for strong relationships due to later transfer of assets?

"Build operate transfer" Please refer to page number 5 of the Script for this module and to Slide number 9. With build operate transfer there is a greater responsibility on the customer because there is an intention to take the service back into the customer's organisation at some point in the future. It is likely that the customer will be far more deeply engaged with the supplier as there is a future transition that needs to be managed. M3

The potential value from your suppliers can be best realised by:

"Building a supplier community" Please refer to page number 4 of the Script for this module and to Slide number 8. The focus from many procurement departments is on cost reduction, with the view being the maintained threat of 'well we can always go and purchase from someone else'. This does not make you a good customer, instead look to build a community or partnership mentality to the way in which you conduct your interactions rather than managing at arm's length. M7

When considering what should be measured from an SRM perspective, you should ignore that which will divert management attention from your goals and instead:

"Focus on relationship outcomes"

Why should we consider how a supplier views the application of SRM practices in another one of their customers?

"Building mutual, win-win scenarios that drive value for both parties" Please refer to page number 1 of the Script for this module and to Slide Number 3. Why should we consider how a supplier views SRM practices in one of their customers? Well, simply put, we discuss over the duration of this course the imperative nature of building mutual, win-win scenarios that drive value. M18

How do our trading agreements provide risk assurance?

"By putting boundaries around our risk" Please refer to page number 1 of the Script for this module and to Slide number 3. And of course, our trading agreements have the role of providing risk assurance, by putting boundaries around our risk. M6

In preparing a Business Case for SRM, Return on Investment calculations will:

"Calculate the value of a project or investment" Please refer to page number 8 of the Script for this module and to Slide number 15. Another approach to evaluating an investment's ability to generate value to the company is to calculate Return on investment. Return on Investment calculations do not address corporate strategy. A company can pursue several projects meeting projected ROI requirements - yet do nothing to advance the strategy. M9

In contracts to deliver projects outcomes, the main reason for quality project management procedures such as the comprehensive collection, collation, analysis and review of appropriate project performance data, is to:

"Catch and correct contractual departures and deviations before they become burdensome" Please refer to page number 3 of the Script for this module and to Slide Number 7. To prevent or resolve money-related disputes, make sure your organization's project management processes are well documented. These should outline the comprehensive collection, collation, analysis and review of appropriate project performance data. If project management is done well, this will remove or at least recognise the basis for protracted argument or dispute. If your company can clearly prove whether or not the contractual performance requirements have been met, then you will be able to correct contractual departures and deviations before they become burdensome. M19

Considering the strategic supplier coverage research, which of the following is the sort of information that is least likely to be shared with a strategic supplier during relationship review meetings:

"Category strategy/plans" Please refer to page number 5 of the Script for this module and to Slide number 11. Further down the importance scale it is interesting to note that pricing and contract management are less discussed, similarly with development of category strategies. This shows there is a separation of responsibilities between what SRM is destined to manage and where the procurement role ends. M7

Which of these is a correct statement in relation to the impact of contract change on cost and price?

"Change may result in no cost or price impact for either party" Please refer to page number 3 of the Script for this module and to Slide Number 6. The client's cost effect (which is the supplier's price effect) may increase, decrease or be zero. Of course a change can also impact the supplier's cost without price impact; you need to be aware if this will have an initial impact on the relationship dynamics. M20

In considering contract changes under an SRM program, which of the following change types will be least likely to drive success in your supplier relationships?

"Change that adds further, unrewarded obligations onto an underperforming supplier" Please refer to page number 1 of the Script for this module and to Slide Number 3. You should consider actively looking for changes with your suppliers that can benefit your company through enhancing processes, products, services and ultimately the delivery to and satisfaction of your customers. To do this well you need to understand your organizations documented process under which changes can and will occur. With an underperforming supplier you should be focusing on the causes of their underperformance first. M20

When communicating as an SRM manager it is important to always:

"Check the impact of your messages" Please refer to page number 5 of the Script for this module and to Slide Number 12. It is also important that you check the impact that your message generates. Test this by gaining feedback from the audience. You can then judge whether the meaning of the message is being received as intended. If not then you need to redesign your message. M16

The Microsoft/Accenture 'One Finance' case study demonstrates that major business value outcomes are achievable when we demonstrate the following:

"Collaboration and innovation" Please refer to page number 2 of the Script and to Slide number 5. So when we get major supplier arrangements right, when we set up an appropriate contracting vehicle and when we manage key relationships for value, in a collaborative and innovative manner, major business value outcomes are achievable. M2

Which of the following is the value and behaviour that you should predominantly promote in your SRM implementation program?

"Collaboration" Please refer to page number 5 of the Script for this module and to Slide number 12. Collaboration should be the value that you predominantly promote in your implementation program as it will exemplify the behaviors you wish others to adopt. M11

As part of the process of identifying the right suppliers, what are the 4 different categories into which you can segment all of your suppliers?

"Commodity, developing, strategic and legacy" Please refer to page number 2 of the Script for this module and to Slide Number 6. We discussed in the module 'who are your suppliers' about the segmentation of all your suppliers into four different categories: commodity, developing, strategic and legacy. The classification methodology used was the strength of alignment of a supplier to the contracting organization such as values, strategy, attitudes and behaviours. The other aspect for consideration was the cost to exit or extricate yourself from the relationship. M22

In the process of building rapport, which matching of interaction styles is least likely to develop rapport?

"Competitive to competitive" Please refer to page number 6 of the Script for this module and to Slide Number 14. Only where the interaction is of a competitive nature is rapport unlikely to be developed. In the four other matched style options the rapport developed manifests itself as a shared desire to protect the quality of the relationship. M16

Developing the buy-in and acceptance of change is often heavily dependent upon:

"Human behaviour" Please refer to page number 1 of the Script for this module and to Slide number 3. This is because change and developing the buy-in and acceptance of change is often heavily dependent upon human behavior. M12

In Bruce Tuckman's model for group or team development, the stage entitled "adjourning" relates to which of these aspects of the exit strategy?

"Conclusion, disengagement, reducing dependency between customer and supplier" Please refer to page number 1 of the Script for this module and to Slide Number 5. The adjourning process is about conclusion and disengagement, both from the tasks and the relationship. M21

As part of defining the objectives of a communication plan we should:

"Consider how your desired outcomes for SRM align to corporate strategy" Please refer to page number 4 of the Script for this module and to Slide number 7. Be clear in your objectives as clarity of thought provides for a convincing argument. Consider how your outcomes for SRM align to corporate strategy, will build competitive advantage, will minimise disputes and conflict with your supplier and how SRM might bring beneficial changes to business process and delivery to your customers. M12

Where a group of suppliers provide a coordinated tender response identifying that it is their intention to work together because each has a speciality that makes a combined bid stronger, what type of sourcing option would this be?

"Consortium" Please refer to page number 5 of the Script for this module and to Slide number 11. When you are running a tender for a piece of work you may well find that rather than a single supplier providing a response that meets all of your requirements, a group of suppliers submits a suite of proposals that are coordinated and cover the entirety of your request and identify that it is their intention to work together to support your aims. This is a consortium approach and will be undertaken because the consortium understands that they each have a speciality that can be brought to bear and that will make their combined bid stronger than if they were attempting to deliver on their own. In fact it is unlikely that they could win the project and deliver on their own. M3

Considering SRM, what type of governance ensures that within the scope of the contract, each side performs their obligations and responsibilities to the level expected?

"Contract or account governance" Please refer to page number 2 of the Script for this module and to Slide number 4. The second heading under which we will consider governance is contract or account governance. This ensures that within the scope of the contract, each side performs their obligations and responsibilities to the level expected. M15

What kind of governance refers to the manner in which our own organization manages and regulates its activities?

"Corporate governance" Please refer to page number 2 of the Script for this module and to Slide number 4. Thirdly, we'll look at Corporate Governance, which is the manner in which our own organization manages and regulates our activities. This delivers to the shareholders and other stakeholders the confidence in the Board of Directors. M15

By focusing on the quality of a strategic supplier's service rather than seeking to drive down the supplier's prices you are more likely to:

"Create an opportunity to leverage the relationship's strengths" Please refer to page number 3 of the Script for this module and to Slide number 7. The relationship should not be just about increasing the volumes they provide you, it should be about the quality of the way they service you and the importance that they give to your business drivers. M7

When considering your sourcing strategy, functions and activities that are critical to business operations, but do not distinguish the organization from its competition are known as:

"Critical commodities" Please refer to page number 2 of the Script for this module and to Slide Number 4. Critical-commodities are good candidates for outsourcing, if an external supplier can meet stringent requirements for quality and responsiveness as well as a low price. Best source, not cheapest source, would be the guiding principle for outsourcing a critical commodity. M3

When considering your sourcing strategy these activities are critical to business operations and help differentiate the organization from its competition:

"Critical differentiators" Please refer to page number 2 of the Script for this module and to Slide number 4. Critical-differentiators should rarely be outsourced to an external supplier; although contracted support might be brought in to meet temporary resource needs. M3

What is the term for an organization that consistently receives preferential access to resources, ideas and innovations from its key suppliers that give it a competitive edge in its markets?

"Customer of choice" Please refer to page number 5 of the Script for this module and to Slide Number 11. If we want to deliver high value outcomes from our strategic supplier relationships, it is important that our most strategic suppliers view us as a customer of choice. 'A customer of choice is a company that consistently receives preferential access to resources, ideas and innovations from its key suppliers that give it a competitive edge in its markets.' M22

Considering the example of the six stage communications plan, the first stage of the plan is to:

"Define our objectives and priorities" Please refer to page number 4 of the Script for this module and to Slide number 7. The first thing that you need to do is define your objectives and priorities. What is it you are trying to achieve with your communication plan? M12

Benchmarking is primarily about:

"Defining where we are at, at a given point in time" Please refer to page number 1 of the Script for this module and to Slide number 3. Defining where we are at a given moment is creating a benchmark. By knowing where we are at a given point in time, we can then use that position as a reference against which to apply improvement activities and against which we can measure ourselves. M8

Within SRM, when distinguishing SRM governance from other types of business governance, corporate governance is:

"Described as the overarching suite of rules and regulations by which a company is bound" Please refer to page number 3 of the Script for this module and to Slide number 9. Corporate governance is the overarching suite of rules and regulations by which a company is bound, to protect the interests of shareholders, to meet ethical practices and to ensure negative news stories are minimized. M15

PESTLE analysis is a tool used in SRM Business Cases that allows you to?

"Identify external factors that may affect your SRM program" Please refer to page number 4 of the Script for this module and to Slide number 9. The acronym PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. Whilst an organization on its own cannot directly affect and manage all these external factors, by understanding their respective influence over the organization, it is possible to maximise the opportunities and minimise the threats they bring. M9

In the realm of SRM, the balanced scorecard gives commentary on:

"Details on current issues and escalations with strategic suppliers among other things" Please refer to page number 1 of the Script for this module and to Slide number 3. In the realm of SRM the balanced scorecard provides as a minimum: 1) A view on the status of supplier relationships, 2) Trends over time in those relationships, 3) Comparison to other supplier relationships, 4) Supplier performance against strategic goals, 5) A high level view of supplier delivery areas, spend and tenders, 6) Current issues, escalations 7) Key stakeholders and account personnel 8) Supplier intelligence gathered 9) Supplier innovation and opportunities. M14

SRM can be defined as:

"Developing successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties" Please refer to page number 2 of the Script for this module and to Slide number 6. SRM can be defined as; 'the function that seeks to develop successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties'. M2

When considering the skills a SRM Manager needs in addition to collaboration, the behaviour described as 'Avoidance' is most successful when?

"Discussing low importance topics where the value gained is significantly less than the value of the time involved" Please refer to page number 4 of the Script for this module and to Slide number 10. Avoidance is most successful when you are discussing low importance topics with stakeholders where the value gained is significantly less than the value of the time involved. M11

In his book the "Trust Equation", David Maister says that the element of trust called 'reliability' is about:

"Doing what we said we would do and behaving consistently with declared beliefs and values" Please refer to page number 6 of the Script for this module and to Slide Number 12. Trust is the sum of credibility plus reliability plus intimacy, divided by self-interest. As we saw before, if trust means having confidence in somebody or something, then the factors Maister suggests will build that confidence, are under the headings of credibility, reliability and intimacy. Credibility is about having the expertise to deliver, the networks and capability to make things happen and having a positive impact on people. Reliability is about doing what we said we would do, meeting our promises and commitments to the agreed standard and deadline, establishing a track record of delivery, and behaving consistently with beliefs and values. Intimacy is about being willing and able to give and receive feedback, with the intent of improving performance and relationships. M17

In considering the right form of contracts to deliver on stakeholder requirements, working with our supply base in a state of collaboration is unlikely to:

"Drive continuing prescriptive requirements definition" Please refer to page number 6 of the Script for this module and to Slide number 14. One thing is certain, working with the supply base in a state of heightened collaboration will result in a greater commitment to the partnership, to delivering innovative ideas and solutions and less prescriptive requirements definition in favour of allowing the supplier some freedom in shaping the solutions with you. M10

From an SRM perspective, what is unlikely to strengthen your 'customer of choice' credentials?

"Driving hard for competitive pricing amongst alternative suppliers" Please refer to page number 5 of the Script for this module and to Slide Number 12. Aside from awarding more business to a supplier, here are some other things you can do to strengthen your 'customer of choice' credentials; take the trouble to learn about your key suppliers. Share information wherever possible. Ensure that actions are consistent with your words. M21

A key role of the contract manager is to:

"Enforce the contract terms and conditions" Please refer to page number 6 of the Script for this module and to Slide Number 13. The contract manager is there to enforce the terms and clauses of a contract - it is not the SRM manager's role. M22

To give an agreement with a supplier the maximum chance of success, we need to:

"Ensure that the terms of the agreement are aligned to each party's desired business outcomes" Please refer to page number 3 of the Script for this module and to Slide number 5. To give the agreement the maximum chance of success, we need to identify the business outcomes each party is seeking from the agreement, and to ensure that the terms of the agreement are aligned to those outcomes. M6

Which of the following statements describes an evaluation method traditionally used to differentiate between suppliers where relationship management principles were not used?

"Evaluating statistical criteria" Please refer to page number 1 of the Script for this module and to Slide number 4. The traditional way of differentiating has been to evaluate statistical criteria. How much are you spending with different suppliers, how many purchase orders do you raise on each etc. M4

A person should be described as a stakeholder only if they are someone who is at risk of having their role negatively impacted by SRM:

"False" Please refer to page number 3 of the Script for this module and to Slide number 8. An excellent way to think of a stakeholder is to consider whether the person is at risk in any way (both positive and negative) from any changes you are implementing. If they are then they are probably a stakeholder, so then think about their attitude. M10

In the realm of SRM, all of your stakeholders, internal and external, should be communicated with equally about the Balanced Scorecard results:

"False, extent of information sharing is dependent on stakeholder identity and priority" Please refer to page number 2 of the Script for this module and to Slide number 4. When communicating through a balanced scorecard approach, you should consider the purpose of your particular balanced scorecard, who are the recipients of the information and what do you want them to know. Therefore, the frequency with which you will gather and publish the data that you collect is important. Over-communicating will dilute the importance of what you are trying to convey, under-communicating will lose focus on the objective. M14

When both sides are happy with a relationship, do not have any personality clashes and the contractual documentation is well constructed, then there is no reason to believe that a contract dispute will arise?

"False, one party may still deviate from plan causing the other to lodge a dispute" Please refer to page number 2 of the Script for this module and to Slide Number 5. One or other of the parties may deviate from agreed processes, procedures or standards, either contractually or at law. M19

When implementing your sourcing strategy and you contract with a single supplier for delivery of the entire scope of a service or a product and instigate a one to one relationship, you have entered into which sourcing approach?

"Full outsourcing" Please refer to page number 3 of the Script for this module and to Slide number 7. Rather than employing people within your own organisation to deliver a service or create a product, full outsourcing is about a contract with a single supplier to complete a task set for you in its entirety; the scope and responsibility for scope is clear. There is just one relationship to manage with a supplier who can potentially provide multiple complementary capabilities. M3

In the early days of your SRM program when considering your supplier segmentation, a major pitfall when it comes to seeking continuous improvement is:

"Gaining the time and input of your internal stakeholders in the business" Please refer to page number 3 of the Script for this module and to Slide number 6. The major pitfall you will have, however, is gaining the time and input of your business. They may still not be convinced of the relevance of SRM, they may feel it is too prescriptive and prevents efficient workflow, especially if you are coordinating across multiple business partners. It is imperative that you find a way to engage the stakeholders in this process and gain their buy in. It will make future discussions with the supplier more productive and allow any continuous improvement initiatives to be embedded more quickly. M5

In measuring SRM program success or failure, root cause analysis can be used to:

"Get to the heart of an existing problem or event " Please refer to page number 7 of the Script for this module and to Slide number 15. Root cause analysis (RCA) is a method which aims to identify the heart or root cause of a problem or event. The practice of RCA is predicated on the belief that problems are best solved by addressing and correcting or even eliminating their root cause. This is more effective and provides for a long term solution, rather than merely addressing and treating the immediately obvious symptoms. Complete prevention of problem recurrence by a single corrective action is not always possible, there may be several overlapping remedies that address and resolve the issue, so RCA can be an iterative process, and used as a tool for continuous improvement. M13

According to a Manchester Consulting survey of executives around trust builders and busters, which of the following is NOT one of the top ways in which trust is eroded?

"Giving information which is bad news" Please refer to page number 5 of the Script for this module and to Slide Number 11. According to a Manchester Consulting survey, the top ways in which trust is reduced are inconsistency between what we say and do, putting our own gain above the win-win, withholding information and lying or telling half-truths, being closed minded, disrespectful and breaking promises. M17

In considering contract changes under an SRM program, if there was an error or omission in the original signed contract, rectifying that error or omission in the days after contract signature is:

"Going to require a contract change request" Please refer to page number 2 of the Script for this module and to Slide Number 4. When the contract is negotiated and signed, the complete requirements of the final contract documentation represent the agreed position between the client and the supplier at that time. The contract documentation naturally should include all requirements concerning program, technical specification, performance, and quality. So, after document signature, any alterations, enhancements, deletions or substitutions to the contract provisions are changes to the original agreement and need to be reflected. M20

In planning communications about SRM, we use a three dimensional model considering Demand, Control and Supply as three ways of thinking. Control includes:

"Governance put in place to ensure that the supplier is managed uniformly" Please refer to page number 2 of the Script for this module and to Slide number 5. Control also considers the governance that you will put in place to ensure that the supplier is managed uniformly and all recognize the importance of a coordinated approach. M12

Which of the following are the four pre-requisites for good SRM?

"Harmony, honesty, partnership, a common goal" Please refer to page number 1 of the Script for this module and to Slide number 3. Good Supplier Relationship Management is founded on a number of pre-requisites, but these can be distilled into 4 main factors which will be explored through this module. These are: - Harmony, the sense of ensuring that everyone is getting a benefit from the relationship. If you aren't getting what you want then why would you bother being involved? - Honesty, no-one likes unwelcome surprises, so the more open and honest the approach, the more trust will be developed and the fewer the negative surprises will be. - Partnership, also known as collaboration. This has been discussed in earlier modules in some depth but will be developed further later in this module. - A common goal. When we all work towards a single aim we each are aware of the role we have played and can take satisfaction from knowing our contribution added value. M7

As SRM manager, how should you start to create an environment that leads to value?

"Having frequent open dialogue and sharing of information" Please refer to page number 6 of the Script for this module and to Slide number 15. Starting with frequent, open dialogue and the sharing of information in an open and trusted environment will lead to value. This ensures that both parties are happy to be working together as they feel that they are a part of something valuable. When you feel engaged and have the ability to create an opportunity there is a greater chance in the reliability of the service. In the SRM context this will lead to enhanced service and product delivery with a view to lowering the joint cost and risk. Trust is continued to be built reinforcing the belief that both sides have in the relationship. M7

In the realm of SRM, a typical balanced scorecard dashboard will contain the following information:

"High level summary information " Please refer to page number 2 of the Script for this module and to Slide number 5. A balanced scorecard will use a dashboard to convey at a high level the information contained in greater detail within the scorecard itself. M14

In the management of your relationship with a strategic supplier, your governance requirements will not stipulate which of these statements?

"How your supplier will gain financially from your commitment" Please refer to page number 3 of the Script for this module and to Slide number 8. The supplier also needs to clearly understand your governance requirements around escalation paths, meetings, values and behaviours and the dependencies upon contractual commitments. M4

A contract is more likely to experience contractual disharmony if:

"If it allows for roles and responsibilities to be clarified after contract signature" Please refer to page number 7 of the Script for this module and to Slide Number 16. A contract which is formed on the basis of crystal clear and unambiguous entitlements and values, roles and responsibilities, contract purpose and information, performance requirements and contracting governance is much less likely to experience contractual disharmony. M19

Implementing best practice in SRM will help us to:

"Improve supplier relations to maximize opportunity" Please refer to page number 1 of the Script for this module and to Slide number 3. We must learn therefore how to harness the opportunity that a global supply base brings and part of that is to ensure we understand how to maximize these advantages through improved relationships with our suppliers. Implementing best practice in SRM will help us to do that. M2

Within an SRM program, which of the following is NOT one of the steps you can take to forge the culture of the relationship with a supplier?

"Include your requirements for the relationship culture as part of the tender evaluation criteria when selecting suppliers" Please refer to page number 2-3 of the Script for this module and to Slide Number 6. Take the time to agree inprinciple the kind of relationship wanted with your opposite number in the supplier. Talk about the goals and drivers of each company. Talk in broad terms about what kind of relationship will be needed to deliver those goals for maximum economic value over the long term for both organisations. Agree your joint vision for the collaboration between the two organisations. M17

Which of the following might reasonably be a cause of a dispute during the selection of a supplier?

"Incomplete assessment or evaluation of responses from all bidders" Please refer to page number 2 of the Script for this module and to Slide Number 4. A dispute can be defined as an unresolved issue between contracting parties, essentially you and your supplier. It is often the result of poor assessment or evaluation of responses. M19

For really effective stakeholder management, you should ensure that your stakeholders:

"Inform you of new requirements as they arise" Please refer to page number 8 of the Script for this module and to Slide number 18. Once you have identified and engaged with the stakeholder community, you should encourage them to identify and inform you of new requirements as they arise, you need to keep track of such requirements to ensure that where appropriate, the rest of your network can benefit and contribute to the development of such needs. This will require you to effect changes to the way in which the stakeholder community approaches these types of concern. This will then give both your company and your suppliers' organisations commercial benefit through new revenue opportunities. M10

From an SRM perspective, metrics are a starting point for:

"Informed dialog" Please refer to page number 5 of the Script for this module and to Slide number 11. The metrics you produce are the starting point for informed dialogue with your suppliers and stakeholders. If we don't treat the results this way, then it is likely that they may be taken out of context and used for internal political positioning or alternatively result in contractual redress through liabilities and penalties. M13

An SRM manager must not:

"Inhibit the creation of value" Please refer to page number 5 of the Script for this module and to Slide Numbers 11,12. A Supplier Relationship Manager must be an effective communicator who can create an environment within which positive dialogue occurs. It allows us to develop others in their role as a stakeholder. By exhibiting the right values, practices and behaviours the SRM can become the inspirational leadership that others naturally wish to follow and as such you have therefore become a part of the catalyst of change allowing your stakeholders to unconsciously move towards the competency of SRM. M16

In considering success factors in implementing your SRM program, who will have the greater interest in the relationship between your company and your strategic supplier?

"Interest should be approximately equal from both sides" Please refer to page number 7 of the Script for this module and to Slide number 17. Remember that supplier relationship management is a two way activity. You need to remember that your trusted suppliers have a vested interest in your success as it reflects on the success of their delivery to you, their profitability and their shareholders' interests. M11

When considering your sourcing strategy, if you wish to have a service delivered by your own staff, do not wish to become dependent upon others and require control over delivery, then you are looking at which sourcing approach?

"Internal delivery" Please refer to page number 3 of the Script for this module and to Slide number 6. Internal delivery is about retaining complete control and responsibility. M3

Which of the following should be considered when designing a sourcing approach?

"Is the service or product something that we could create or build ourselves?" Please refer to page number 1 of the Script for this module and to Slide Number 3. Whether the service or product is something that we could create or build ourselves is a consideration in creating a sourcing approach. M3

The primary reason the SRM Manager should understand their business as if they were the supplier's Account Director is:

"It creates a balance of information, which reduces any advantage one party has over the other." Please refer to page number 2 of the Script for this module and to Slide number 5. The SRM needs to understand their own business as if they were the Account Director; they should define what areas the account director would be interested in and uncover the relationships held to mirror the advantage that the supplier holds. M4

It is always essential to be completely open with your exiting supplier over the reasons for termination:

"It depends on the circumstances of the termination" Please refer to page number 6 of the Script for this module and to Slide Number 13. In circumstances such as these, you need to take counsel from others in your organization because the wrong approach could carry severe consequences - ranging from litigation to uncooperative behaviour. M21

The basis for your organization's relationships with suppliers should be one where:

"Mutual opportunities are explored" Please refer to page number 4 of the Script for this module and to Slide number 9. Ultimately your goal is to move your organization's relationships to a new level which help drive your missions and values. Where threats and concerns previously existed, there is now a desire to create mutual opportunities where both sides benefit. M7

Which of the following is NOT a reason for undertaking supplier segmentation in an SRM context?

"It helps to group our suppliers into different categories based on the products or services they sell." Please refer to page number 1 of the Script for this module and to Slide Number 3. Segmentation, in an SRM context, provides help to align how our company chooses to allocate its potentially limited resources with the strategic goals of the organization. We are moving away from a process oriented approach, such as managing specific groupings or categories of supplier towards an approach where we are thinking of strategic alignment to our companies aims. This latter point then leads into us choosing to develop those relationships that make more sense in the context of supplier roles, the goals of the procurement organization as a whole and how that maps to supporting the different business unit strategies. M5

Which of the following is not a common reason for companies to outsource their activities to external partners?

"It is an alternative to merger or acquisition" Please refer to page 1 of the Script for this module and to Slide number 3. Companies now outsource more of their activities to external partners, partly for reasons of cost reduction and partly to access the expertise and innovation of other companies, while focusing on the real core competence of their own company internally. M1

In the relationship with a strategic supplier, how should an exit strategy be developed?

"Jointly by both organizations" Please refer to page number 3 of the Script for this module and to Slide number 8. Don't fall into the trap of becoming too dependent upon your supplier, and bear in mind that you need to jointly focus on exit strategies to be employed for when the relationship comes to an end for whatever reason. M4

In measuring SRM success, a balanced scorecard is a strategic performance tool which is clear and easy to understand and:

"Keeps track of the execution of activities and monitors the consequences arising from these activities" Please refer to page number 3 of the Script for this module and to Slide number 7. One very common tool used in SRM is the balanced scorecard. This is a strategic performance management tool - a semi-standard structured report, supported by proven design methods and automation tools. It is often used by managers to keep track of the execution of activities by the staff under their supervision and to monitor the consequences arising from these activities. M13

When considering stakeholders from the perspective of the stakeholders' importance to program success and the impact of the program on them, the group with a high level of importance to success and significantly impacted is labelled as which group?

"Key players group" Please refer to page number 3 of the Script for this module and to Slide number 7. The key players are powerful stakeholders who can become allies and champions and as such a valuable asset. They can substantiate the case for change, reinforce messages, change incentives and accelerate any needed behaviour changes. M10

As an SRM manager, soft skills are important. Which of these is not a soft skill?

"Knowing your company systems, structure and strategy" Please refer to page number 1 of the Script for this module and to Slide Number 3. Knowing yourself, where your natural motivations and social styles originate, understanding properly the environment within which you currently operate and who (emotionally) are the people you are dealing with will all help with your aims for successful SRM. These three here are the hard elements of the McKinsey 7-S model. M16

The intent and contents of specifications often lead to disputes. Which of the following could indicate a dispute based on specifications?

"Lack of clarity in requirements from the customer" Please refer to page number 4 of the Script for this module and to Slide Number 8. The intent and content of specifications are often disputed. If the requirements are vague and unclear, they can lead readers to wonder exactly what the customer had in mind when forming the contract, so creating ample opportunity for a dispute. M19

In a recent survey 55% of respondents suggested that their strategic supplier community consists of how many suppliers:

"Less than 25" Please refer to page number 4 of the Script for this module and to Slide number 10. A recent survey by State of Flux conducted around strategic supplier coverage posed a number of questions; Almost one third of those surveyed indicated that strategically they have less than 10 suppliers, with about 55% suggesting that the total number was certainly less than 25. M7

Evaluating the success of a communications activity helps us to:

"Let us know whether we have achieved our objectives" Please refer to page number 6 of the Script for this module and to Slide number 12. The final part of your six stage communications plan is going to be the evaluation and measurement of your success. At this point you need to think about how you will determine whether you have achieved your objectives, whether the communication plan that you devised has worked or whether you need to rework any element of it. M12

For an SRM manager communicating with stakeholders, feedback from the audience:

"Lets you know if your message is being understood as you intended" Please refer to page number 5 of the Script for this module and to Slide Number 12. Test your communication by gaining feedback from the audience. You can then judge whether the meaning of the message is being received as intended. If not, then you need to redesign your message. M16

In the context of an SRM program, a key role of the finance team is to:

"Manage invoicing and payment" Please refer to page number 6 of the Script for this module and to Slide Number 13. [SRM] should not be about managing invoices, Purchase Orders and payments, that is the role of Accounts Payable and the budget holders. M22

In the context of an SRM program, a key role of the service delivery manager is to:

"Monitor service levels" Please refer to page number 6 of the Script for this module and to Slide Number 13. The SRM managers' role is also not about monitoring service levels, that is the role of the service delivery manager. M22

There are a number of different types of segmentation models. Which model outlines a segmentation approach using many variables, e.g. spend, relationship complexity, product volumes?

"Multi-dimensional" Please refer to page number 6 of the Script for this module and to Slide number 11. The models that are described include the following, but there are a couple of extra ones defined in the Ask the Expert call:.................Multi-dimensional: Segmentation using many variables, e.g. spend, relationship complexity, product volumes. M5

In a successful SRM program, what is the business benefit of creating rapport with stakeholders?

"Mutual understanding and trust, leading to collaboration" Please refer to page number 1 of the Script for this module and to Slide Number 3. We communicate more easily, and understand one another better, when we are in rapport, i.e. we have mutual understanding and trust. This enables us to share our thoughts, ideas, concerns and aspirations, and thereby to collaborate for mutual success and value. M17

A supplier who has not yet developed a trusting, SRM based relationship with a customer is: 1) Likely to introduce third party companies to the customer, 2) Will willingly bring other suppliers to the customer

"Neither 1 nor 2 is true" Please refer to page number 3 of the Script for this module and to Slide Number 7. SRM can also provide suppliers with an opportunity to introduce niche players and alliance partners to the customer. Where there is no supplier relationship manager there is less openness to opportunity; the supplier is likely to only introduce its own product suite and services into your company. M18

In considering the drafting of a contract with a supplier, if the goals for the relationship are ill-defined then which of the following will instead ensure delivery of what is needed: 1) Contract management, 2) Project management:

"Neither 1 nor 2 is true" Please refer to page number 3 of the Script for this module and to Slide number 6. If we don't clearly define and articulate the goals we need to achieve in the relationship, then no amount of project and contract management will deliver what is needed from the agreement. M6

In an SRM Program, the contributors to the Balanced Scorecard Dashboard should be: 1) Anonymous to avoid bias 2) Anonymous to protect business unit interests?

"Neither 1 nor 2 is true" Please refer to page number 3 of the Script for this module and to Slide number 6. The summary for each supplier should also state who has contributed information for the reporting period in question. M14

Which of the following statements describes the support you can expect from a strategic supplier? 1) Only interested in supporting your short term strategy; 2) Discussions about the measurement of the relationship with simple metrics derived objectively.

"Neither 1 nor 2 is true" Please refer to page number 3 of the Script for this module and to Slide number 8. The relationship with a strategic supplier is not only an investment in the long term strategy of your own company, but actually it is also an investment in the long term strategy of the supplier. Therefore, both sides need to show full commitment to the relationship. M4

Within the realm of SRM governance, contract governance essentially creates an assurance that:

"Neither side steps outside the formally agreed mode of operation" Please refer to page number 3 of the Script for this module and to Slide number 7. Essentially it creates an assurance that neither contracting party steps outside of the formally agreed and documented mode of operation. M15

You expect a number of your future rising stars will come from a particular business function within your organization. Would it be advisable to enter into a buy decision for the principal process delivered by this business function?

"No" Please refer to page number 1 of the Script for this module and to Slide number 3. If there is a likelihood that future top executives may come from a particular area of our business, or a particular service we deliver, then again, we are more likely to invest and develop that, rather than have someone else deliver it on our behalf. This way we protect our investment in our resources and can ensure that they stay embedded within the organisation, are nurtured and grow. M3

SRM is now considered to be so fundamental to business success and the creation of competitive advantage that you won't need to create SRM Introductory documents to sell the program internally?

"No" Please refer to page number 1 of the Script for this module and to Slide number 3. No matter how good you believe the SRM program will be, or the benefits of including a supplier into the strategic management portfolio, you will need to sell the idea to others before the change can happen. This is because change and developing the buy-in and acceptance of change is often heavily dependent upon human behavior. M12

When we think of stakeholders in an SRM context, we are really considering only those people in our organisation with the power and influence to affect positive relations with the supply base?

"No" Please refer to page number 1 of the Script for this module and to Slide number 3. SRM needs to take into account stakeholders from both organisations. Supplier relationship management is going to affect people, both in your and your supplier's organisation. M10

When we think of stakeholders in an SRM context, we are really considering only those people in our organisation with the power and influence to affect positive relations with the supply base?

"No" Please refer to page number 1 of the Script for this module and to Slide number 3. SRM needs to take into account stakeholders from both organisations. Supplier relationship management is going to affect people, both in your and your supplier's organisation. M11

If a stakeholder is likely to suffer a loss from the implementation of the SRM program can you automatically assume that they will undermine the goals of the program?

"No" Please refer to page number 4 of the Script for this module and to Slide number 9. Whilst they may initially be disappointed, you should think about how to turn a negative into a positive, think of ways to minimize the loss, or minimize that person's ability to prevent changes from occurring. It may be that the stakeholder is happy to lose an area of responsibility or a process. M10

It is generally considered that there is little value in gathering lessons learned from a communications plan because people have emotions and perspectives that change through time?

"No" Please refer to page number 6 of the Script for this module and to Slide number 12. Communications are ongoing in long term relationships. Lessons learned from the way we have engaged can inform us in our future planning. They may guide and advise us to the approaches that worked and what did not work. M12

When thinking about the qualities of an SRM manager, a high IQ generally indicates that they have a high level of emotional intelligence:

"No, a high IQ does not automatically indicate a high emotional intelligence capability" Please refer to page number 2 of the Script for this module and to Slide Number 6. It is quite possible to be highly intelligent with a high IQ, yet at the same time end up working for people who have lower IQs but who have better developed and harnessed their emotional intelligence skills. M16

In general, organizations have less dependency on key suppliers today than they did in the past:

"No, because far more activities are outsourced than before" Please refer to page number 4 of the Script for this module and to Slide Number 9. The consequences of exit - whether voluntary or involuntary - have potentially become far more significant today, due to a heightened dependence on key suppliers. M21

If a supplier is being replaced by a direct competitor, it is important to exclude them as rapidly as possible:

"No, because there may be a need for collaboration and hand-over between the suppliers" Please refer to page number 6 of the Script for this module and to Slide Number 12. Successful transition may depend on collaboration between the incumbent and the new supplier. M21

So long as the contract contains a right of termination, there are no significant factors for the customer to consider since all costs for termination will rest on the supplier:

"No, exit costs usually sit with both parties" Please refer to page number 2 of the Script for this module and to Slide Number 7. Your supplier should manage their exit transition plan and you should also maintain an estimate of your costs for exit. These costs could be caused by resourcing internally to deliver the exit project or the costs to replicate systems, facilities or processes that may not be handed over. M21

It is always a bad idea to consider ways to sustain a relationship when substantially all the elements of contract are being terminated:

"No, it may make good business sense to " Please refer to page number 5 of the Script for this module and to Slide Number 10. As mentioned in the introduction, one strategy to consider when planning an exit is whether there are potential ways to maintain the relationship through new contracts. This can be especially important if you need to somehow 'sweeten the pill' for the supplier. For example, if you rely on the supplier's goodwill in making a transition, or if there are potentially large costs associated with termination, it is smart strategy to have a carrot to offer that will gain the supplier's collaboration. One option is relationship extension. M21

In considering contract changes under an SRM program, a 'no effect' change has no visible, quantifiable effect on the contract terms. Should these be automatically approved?

"No, it needs to be reviewed in light of the contract as it currently stands and future implications" Please refer to page number 3 of the Script for this module and to Slide Number 6. 'No effect' changes when taken individually may have no quantifiable effect, but taken in total, they may actually accumulate to have a significant impact. Make sure the change control process reviews a 'no affect' type of change occasionally to ensure you are not suffering cumulative effects, or delivering problems to the governance of your side of the relationship. M20

As an SRM Manager, is it important to know in advance how you will react in every situation you face?

"No, its impossible to predict our reactions to every new situation" Please refer to page number 2 of the Script for this module and to Slide Number 6. It is impossible to predict how you will react to a new situation, but if you know and are comfortable with who you are, you can respond appropriately. The effective handling of emotions in relationships, reading and responding to situations smoothly and to the advantage of all, creates an ability to negotiate and collaborate. M16

Supplier segmentation exercises always produce a specific and definite statement of supplier categorization. Is this statement correct?

"No, segmentation exercises are often the subject of discussion and argument" Please refer to page number 2 of the Script for this module and to Slide Number 4. Be aware that segmentation exercises can be the subject of discussion and argument with some individuals in the organization determined to have their particular supplier recognised in a different category to that where segmentation defines that they sit. It will also depend upon which model is chosen for the analysis, there may be added complication introduced. M5

It is unlikely that we will have a problem conducting an SRM benchmark exercise if we don't have all the data to hand, because there should be experts in our organization who we can call on to fill in the gaps using their knowledge.

"No, the lack of certainty introduces potential for confusion" Please refer to page number 4 of the Script for this module and to Slide number 7. These assumptions may be correct, but the lack of certainty introduces the potential for confusion and investigation of inappropriate issues. M8

It should be possible to develop a 'one size fits all' exit plan to use with any supplier:

"No, the plan will vary depending on the specifics of exit and the nature of the supplier" Please refer to page number 2 of the Script for this module and to Slide Number 7. Often the exit activities tend to be handled on an ad-hoc basis, rather than through a well-defined or consistent process. So what should you look for? There should be a contract schedule devoted to exit and it will detail many of the deliverables that form the exit transition plan. For example, there may be data sets to hand over and a statement of when they should be refreshed; or there could be rights to acquire certain assets, or obligations to share information, designed to smooth transition to a new supplier, or for work to move back into your business. M21

If a contract change is submitted by one of the contracting parties, any subsequent dispute based on that submitted change must be resolved with reference to the proposals in that change notice:

"No, this only applies if the change has been accepted, approved and signed off by both the parties" Please refer to page number 4 of the Script for this module and to Slide Number 9. It is essential that change is managed effectively such that a genuine change or variation to the contract is acknowledged and accepted by the parties to prevent a dispute at a later date. Just because a change has been submitted by one party does not mean that a subsequent dispute should be resolved with reference to it. It is important to determine if the change has been accepted, signed and implemented by authorized parties from both organizations prior to the commencement of the dispute. If not, then the existing contractual conditions prevail. M19

Without an SRM approach, in many relationships it is difficult to find an objective way of measuring relationship quality because:

"Often the measures used are highly subjective and based on feelings and emotion" Please refer to page number 1 of the Script for this module and to Slide number 3. In many relationships it is difficult to find an objective way of measuring quality, often the measures used are highly subjective and based on expression, feelings and emotion. But for business performance this is not necessarily appropriate: subjective views need to be quantified through the use of the right measurement tools. M13

Which of the following occurrences might not lead to the conclusion of a contract with the need to implement exit strategies?

"One party is subject to acquisition by another company" Please refer to page number 2 of the Script for this module and to Slide Number 6. Whilst in the case of your company being acquired it may be that your new owner's suppliers become your suppliers. If your supplier is acquired the new owner may continue to deliver the existing contract if it can be novated to them.

When designing an SRM governance structure that includes RACI, what is the maximum number of roles that can be defined as 'Accountable' for each task or deliverable in a RACI matrix?

"One" Please refer to page number 7 of the Script for this module and to Slide number 13. 'Accountable' (which can also mean Approver or final Approving Authority) is the role that is ultimately answerable for the correct and thorough completion of the deliverable or task, and the one from whom the Responsible individual is delegated the work. There must be only one role that is Accountable for each task or deliverable. M15

In the realm of SRM, the Balanced Scorecard is? 1) A view on the status of supplier relationships, 2) A balanced view of industry trends and benchmarks

"Only 1 is true" Please refer to page number 1 of the Script for this module and to Slide number 3. In the realm of SRM the balanced scorecard provides as a minimum, 1) A view on the status of supplier relationships, 2) Trends over time in those relationships, 3) Comparison to other supplier relationships, 4) Supplier performance against strategic goals, 5) A high level view of supplier delivery areas, spend and tenders, 6) Current issues, escalations. M14

In considering contract changes under an SRM program, the most efficient way of managing change is: 1) To have a clear, documented process 2) Ensuring the SRM manager manages the process as the contract progresses:

"Only 1 is true" Please refer to page number 2 of the Script for this module and to Slide Number 4. Throughout the project delivery process, changes will occur for one reason or another. The skill of the contract manager lies in having a comprehensive understanding of the contract and all of its requirements, plus being able to recognize changes and manage the change process as the project progresses. The role of the SRM Manager is to recognize when possible changes need to be brought to the attention of the contract manager. M20

A well presented SRM business case should: 1) Inform the approval body of its value, risk and priority, 2) Determine which specific suppliers will be managed

"Only 1 is true" Please refer to page number 2 of the Script for this module and to Slide number 6. A business case should inform the approval body of its value, its risk and its relative priority. The business case should enable the approval body to determine if the proposal will create benefit to the business and outline its achievability compared to the relative merits of alternative proposals. In other words, it should clearly explain why they should invest in this rather than something else. M9

In considering contract changes under an SRM program, if your supplier has substantial experience and competency when it comes to managing contract change you should: 1) Be wary of this, you need to have a matching capability, 2) Feel confident that they can deliver the project or services as directed by the relationship.

"Only 1 is true" Please refer to page number 4 of the Script for this module and to Slide Number 9. Whilst poor quality should ring alarm bells, high quality should also alert you to the need for matching capabilities or otherwise you will be at significant disadvantage in negotiating the consequences of change.

Factors that may feed into a segmentation exercise frequently include: 1) Sunk cost and relationship investment; 2) Amenability of suppliers to contract change requests:

"Only 1 is true" Please refer to page number 4 of the Script for this module and to Slide number 10. Amenability to contract change requests is not a normal factor in a segmentation exercise. What might we consider in a segmentation exercise? We would consider the amount we spend with a supplier, the difficulty there is in switching to another supplier, both in the cost to exit, but also the availability of others in the market place. We would also consider their alignment of services and products to our company offerings as previously described and also their performance against contract and relationship metrics over time. M5

In considering an SRM program implementation, activities to be undertaken by the SRM function would include: 1) Understanding the company's growth opportunities, 2) Shielding stakeholders from the supply base

"Only 1 is true" Please refer to page number 8 of the Script for this module and to Slide number 19. Finally one of the activities for the supplier relationship manager is to understand the company's growth opportunities and marrying the respective stakeholders with the right supply base.

In considering contract changes with a supplier under an SRM program, if either party raises a contract change request, it should be considered that: 1) There had been a failure in the design of the original contract 2) This change may be an opportunity to add value

"Only 2 is true" Please refer to page number 1 of the Script for this module and to Slide Number 3. But with good change procedures, followed by both parties, claims should not arise. However, they might occur if procedures were not followed. A change was rejected. A supplier carries out 'unauthorized work' such as may be asked for or instructed by someone who does not have the authority to request it. M20

If a dispute arises: 1) The dispute must be handled in accordance with the contractual provisions, 2) One party may not believe that it is in dispute

"Only 2 is true" Please refer to page number 2 of the Script for this module and to Slide Number 4. In some cases, parties may not realize or agree that they are in fact in dispute. An example of this is where a contractual provision for dispute handling and resolution does not survive the period of the contract. The dispute recognition provision may only offer the contracting parties the option of notifying the other contracting party of a dispute in relation to the quality and cost of the work performed up until the date of practical completion. After this date the contract is effectively discharged and the dispute handling and resolution provisions for warranty or defects liability may be enshrined through law and not through contract. So, it's important that you understand when both sides are able to notify of a claim or a dispute and whether that period has a time limit. M19

Which three functions are required to achieve world-class strategic sourcing?

"SRM, contract management and performance management" Please refer to page number 2 of the Script for this module and to Slide Number 6. So what is SRM and how is it different from Contract Management and Performance Management? All three functions are required to achieve world-class strategic sourcing. M2

When implemented well, SRM is a role that...: 1) Is only interested in precise and prescriptive solutions, 2) Can help prevent scope creep:

"Only 2 is true" Please refer to page number 2 of the Script for this module and to Slide number 6. The more specific your description of the problem the better the chance that it is understood in the way intended. People will have less opportunity to put their own slant on your words and deliver you a solution that may not be appropriate. It also prevents what is commonly known as 'scope creep'.

Applying the Hay Competency Framework to the role of an SRM manager, we should: 1) Act on our emotions, 2) Take a logical view of the situation

"Only 2 is true" Please refer to page number 4 of the Script for this module and to Slide Number 9. When we use logic we often have a sense of the long term aim. In SRM the latter is preferable because the relationship with the supplier is a long term consideration. Therefore, the actions and attitudes we display should reflect a logical view. M16

A successful SRM benchmark project outcome occurs when: 1) We focus on the metrics and not the process, 2) We can validate which new approach to take with an element of our SRM Program

"Only 2 is true" Please refer to page number 4 of the Script for this module and to Slide number 7. Other factors that may cause benchmarking projects to fail include, when only metrics are being investigated rather than the processes, a successful project will tell us how to proceed. M8

At the start of a negotiation what position should we adopt in order to access the untapped value that sellers and purchasers commonly leave on the table? 1) Ignore any differences that might exist; 2) Undertake constructive two-way communications.

"Only 2 is true" Please refer to page number 5 of the Script for this module and to Slide number 12. We need to undertake constructive, two-way communication with our key suppliers. We need to leverage the difference between us and them (the reason we chose them is that they are different to us, because of their skills, research capabilities, product and service base, global reach, even a different company culture - it's important that we don't try to drive out these differences and try to make them more like us, but rather ask the question "how can we leverage the differences to access the hidden 42% of value?"). M1

A relationship with high exit costs is one where the supplier: 1) Is primarily dedicated to providing a commodity product or service; 2) Has created a dependence upon their product.

"Only 2 is true" Please refer to page number 7 of the Script and to Slide number 16. With some suppliers the service being provided may no longer be aligned to your business strategy. An example might be where there is a customer dependence on the service, yet in an ideal world you would happily transition away from that need were it possible to do so. The fact that you have not, means that you still need to maintain a relationship with service provider. It is imperative to maintain the positive partnership, the supplier will realise that you have no other option but to remain with them. Realistically therefore the support or service should be contracted to provide protection from future escalation of cost, but also to help define how an exit may be achieved in the long run. M4

Following segmentation of suppliers, the communication exercise with them about performance and performance management should include:

"Openness and honesty about the improvements you expect" Please refer to page number 3 of the Script for this module and to Slide number 6. So communicate with the strategic suppliers about performance and expectations of performance. Identify and outline to the supply chain those improvements that you would like to see executed and as you will have discussed these internally in advance, the supplier will recognise that you are communicating with one voice - a company goal. M5

SRM's primary purpose is all about maximizing opportunities for value for:

"Ourselves and our key suppliers" Please refer to page number 2 of the Script for this module and to Slide number 6. So SRM is all about maximizing opportunities for value for ourselves and our key suppliers by means of highly effective relationships. M2

Research into contracting behaviors suggests that there is a tendency pre-contract to:

"Over-state the capabilities of both the supplier and the customer" Please refer to page number 3 of the Script for this module and to Slide number 6. Research shows clearly that there is a tendency to over-state the capabilities of both the supplier and the customer pre-contract. M6

There are three main categories that a benchmark exercise can be undertaken against. These are?

"Past, peers and potential" Please refer to page number 2 of the Script for this module and to Slide number 4. We can measure against the past as historical data exists that we can analyse... We can measure against our peers in our industry, the geographies that we work within... we can also benchmark against the potential that we have. For this we need to find and adopt best practices and for that we may look outside of our industry vertical, our geography and see what can be learnt from others. M8

According to a Manchester Consulting survey of executives around trust builders and busters, which of the following is NOT one of the top ways to build trust?

"Paying personal compliments to people" Please refer to page number 5-6 of the Script for this module and to Slide Number 11. According to the Manchester Consulting survey, the top ways to build trust, are maintaining integrity, openly communicating vision and values, respecting the other side as an equal partner, focusing on shared goals rather than personal agendas and doing the right thing regardless of personal risk. Also, listening with an open mind, demonstrating caring compassion and maintaining confidences all contribute to building trust. M17

Which of the following roles has a substantial focus on compliance?

"Performance management" Please refer to page number 2 of the Script for this module and to Slide Number 6. Performance Management may be defined as; 'A compliance role that observes, supervises, reviews and maintains the course of supplier performance and delivery. The goal is to maintain control and ensure that the supplier is moving at the anticipated speed and cost toward the accepted scope.' M2

In the realm of SRM, a balanced scorecard dashboard will:

"Portray complex data in a manner that is designed to be easy to read " Please refer to page number 2 of the Script for this module and to Slide number 5. In the module 'Measuring Success' we introduced the concept of a dashboard, a method to portray complex data in a manner that is designed to be easy to read. M14

There are a number of different types of segmentation model. Which model looks at suppliers where there is more need for exploring the opportunity to develop products and capabilities that will become valuable in the market place?

"Potential based" Please refer to page number 8 of the Script for this module and to Slide number 16. Potential based is more aligned to research and creative organizations where there is more need for exploring the opportunity to develop products and capabilities that will become valuable in the market place. The identification of potential comes more from intimate knowledge of each individual supplier and longer intimate discussions with the key stakeholders for each. M5

There are a number of different types of segmentation models. Which model defines the effects of either the purchaser or the supplier having an effect on market size and shape:

"Power segmentation" Please refer to page number 8 of the Script for this module and to Slide number 15. The multi-dimensional model requires us to think in terms of supplier importance and supplier alignment. Importance may include an element of spend, but may also be in terms of uniqueness of offering, ability to provide resources when needed, essentially anything which differentiates the supplier from its competitors and others supplying your organization. M5

What are the three 'Ps' that make for excellent stakeholder management?

"Power, potential impact and position" Please refer to page number 3 of the Script for this module and to Slide number 7. Remember that prioritising stakeholders is about understanding the 3 'Ps': Power, Potential impact and Position, and then building effective communications channels to these people. M10

Which of the following is not included in the Supply Chain Consortium's advice for companies considering trading with international suppliers?

"Practice eating the local delicacies" Please refer to page number 9 of the Script for this module and to Slide Number 19. Gain awareness of regional culture. It is always appreciated if you take the time and trouble to learn a few words of the supplier's language. Maybe find out a little of the country's history. Do listen carefully, particularly where somebody is communicating in their second or third language, and also to hear their different perspectives and cultural values and beliefs. Learn when to talk business, and when to talk in more social terms, to form a business relationship. M17

Which of the following is not an occurrence to cause concern when managing delivery from a supplier?

"Progress against schedule is on target" Please refer to page number 2 of the Script for this module and to Slide Number 4. A dispute can be defined as an unresolved issue between contracting parties, essentially you and your supplier. It is likely that a dispute when managing a supplier's delivery can be tracked to poor progress assessment to date. M19

In considering contract changes under an SRM program, which of the following is unlikely to be impacted by a contract change?

"Project management methodology" Please refer to page number 3 of the Script for this module and to Slide Number 6. The project management methodology is unlikely to be affected by change. The other three points could all be affected. M20

In considering an appropriate SRM mission statement which of these would be the most appropriate?

"Provide a coordinated communications conduit between the internal and external stakeholders to maximize competitive advantage" Please refer to page number 2 of the Script for this module and to Slide number 4. For SRM the mission may be to 'provide a coordinated communications conduit between the internal and external stakeholders to maximize the competitive advantage of the organization'. M11

In SRM subjective views need to be quantified through the use of the right measurement tools because:

"Quantification enables clear feedback to be given to all those involved in a relationship" Please refer to page number 1 of the Script for this module and to Slide number 3. These quantified measures may shed light on current problems and point to their potential solutions. Additionally, by having quantified rather than qualified measures, clear feedback can be given to all those involved in the relationship so that they have an objective view of progress and status beyond their own sphere of interest. M13

You are preparing to tender the services of an incumbent supplier. To help prepare this tender you request information from your incumbent supplier and they in turn indicate that they can provide it at a cost. You should:

"Refer to project inaugural meeting and project review meetings, as to exactly what was expected." Please refer to page number 4 of the Script for this module and to Slide Number 10. Information is an aspect that can frequently lead parties into a dispute. Sometimes the contract may not specify exactly what the supplier is required to provide and when. To avoid this sort of dispute, make sure it is made very clear at the project inaugural meeting, and in regular contract or project review meetings, exactly what is expected from both sides. The basis of this meeting should be to discuss and articulate contractual entitlements and their values. M19

Within SRM, what type of governance strengthens the competency, capability and eventually trust of both sides and ensures the relationship delivers the right environment within which the supplier and customer can work collaboratively?

"Relationship governance" Please refer to page number 2 of the Script for this module and to Slide number 5. Relationship governance strengthens the competency, capability and eventually trust of both sides and ensures the relationship delivers the right environment within which the supplier and customer can work collaboratively. M15

Within SRM, what is the activity or discipline called that requires the identification of those metrics that provide an indication of the relationships success and informs the corrective path if the relationship is waning?

"Relationship performance measurement" Please refer to page number 1 of the Script for this module and to Slide number 4. Performance measurement requires the identification of those metrics that provide an indication of the relationships success and informs the corrective path if the relationship is waning. M15

When designing the SRM governance structure RACI is the acronym derived from which four key responsibilities most typically used in a RACI matrix?

"Responsible, Accountable, Consulted and Informed" Please refer to page number 7 of the Script for this module and to Slide number 13. RACI is the acronym derived from the four key responsibilities most typically used: Responsible, Accountable, Consulted and Informed. M15

Competitive benchmarking is a method used to identify how you are performing against companies who operate in:

"Same sector" Please refer to page number 2 of the Script for this module and to Slide number 4. Competitive benchmarking is identifying how you are performing against companies who operate in the same sector as you. So, do our relationship management processes give us a competitive edge, are we able to negotiate better deals, deliver more value add into our contracts, create more mutually beneficial deals because we are seen as a customer of choice? M8

Considering the result of IACCM research, if we want to get better economic value from contracts, which types of terms should we focus our attention on?

"Scope and goals, dealing with change, communicating between the parties" Please refer to page number 6 of the Script for this module and to Slide number 13. IACCM Top Terms Research shows the benefits of dealing with scope and goals for successful outcomes, dealing with change over time, communicating well between the parties. M6

What are the 4 elements that a contract should cover at a minimum:

"Scope and goals, responsibilities of the parties, governance and performance, recourse and remedies" Please refer to page number 3 of the Script for this module and to Slide number 7. Scope and goals... responsibilities of the parties... governance and performance... recourse and remedies. M6

When considering sourcing options which of the followIng sourcing models should you contemplate if suppliers have a specialism or niche capability while you perform the integration of the supply chain?

"Selective outsourcing" Please refer to page number 4 of the Script for this module and to Slide Number 8. In this particular model, the primary concern is about the responsibility for, and ownership of the project scope. The work that is to be sourced is sufficiently sizeable to enable the project to be broken into smaller pieces, ...The customer, your company, will be responsible for integrating the delivery of the various suppliers into your organization. M3

When considering sourcing options which of the followng sourcing models should you contemplate if suppliers have a specialism or niche capability while you perform the integration of the supply chain?

"Selective outsourcing" Please refer to page number 4 of the Script for this module and to Slide Number 8. In this particular model, the primary concern is about the responsibility for, and ownership of the project scope. The work that is to be sourced is sufficiently sizeable to enable the project to be broken into smaller pieces, ...The customer, your company, will be responsible for integrating the delivery of the various suppliers into your organization. M3

The emotional skill that enables an SRM manager to stop their emotions interfering with tasks they are undertaking is called:

"Self Regulation" Please refer to page number 3 of the Script for this module and to Slide Number 6. Self Regulation; not allowing our emotions to interfere with the tasks we are undertaking but rather to embrace and harness the power of those emotions to complement our ability to achieve the tasks we are set. Where we may have a tendency to procrastinate certain tasks, emotional intelligence allows us to stop this cycle by prioritising that which needs to be accomplished. Simply put 'that which we like doing will manage itself'. M16

According to the Centre for Negotiation at the Copenhagen Business School, in most negotiations, what % of the total value available does each party walk away with?

"Seller 39%, Purchaser 19%" Please refer to page number 4 of the Script for this module and to Slide number 11. Keld Jensen, the Chairman of the Centre for Negotiation at the Copenhagen Business School, expresses this very vividly. Keld's research shows that in most negotiations, the seller walks away with 39% of the value, the purchaser walks away with 19% of the value. M1

In choosing measures of SRM success, which of the following is a measure of supplier relationship performance?

"Service level achievement" Please refer to page number 3 of the Script for this module and to Slide number 6. At the relationship level, companies can assess profitability and competitive advantage resulting from the relationship, achievement against service levels, and many other key measures derived from the quality of the relationship. M13

Within SRM, for relationships to excel there should be a:

"Shared account plan" Please refer to page number 2 of the Script for this module and to Slide number 5. To excel in the relationship, there should be a joint plan (often called a shared account plan) which leads to openness, honesty and trust between both parties. M15

The benefits that an SRM business case seeks to achieve, do not need to be:

"Short term " Please refer to page number 2 of the Script for this module and to Slide number 5. The objectives of a business case should normally be measurable, with all key outcomes quantifiable, allowing their benefits to be tracked, measured and realised. M9

In the realm of SRM, your stakeholder communication frequency and depth around the Balanced Scorecard:

"Should depend on your stakeholders' needs and requirements" Please refer to page number 2 of the Script for this module and to Slide number 4. Over-communicating will dilute the importance of what you are trying to convey, under-communicating will lose focus on the objective. M14

Within an SRM Balanced Scorecard, a well-structured dashboard should use graphical representation and:

"Show trends through time" Please refer to page number 4 of the Script for this module and to Slide number 8. Dashboards enable a quick, visual interpretation of complex data and potentially how that data is changing or trending over time. To use an aircraft analogy, we want to be able to spot quickly when our altitude is dropping below a safe level, or our course is deviating by more than the standard expected percentage variation. In this way, we can take corrective action promptly and ensure we stay on track to meet our stated business objectives and outcomes. M13

Within SRM, where a relationship is of strategic importance, your CXO will want to meet the CXO from the supplier to lay out a vision and strategy for the two companies. How often should this meeting occur as a minimum?

"Six monthly or annual" Please refer to page number 5 of the Script for this module and to Slide number 10. Where the relationship is of strategic importance, your CXO will want to meet with the CXO from the supplier (or similar high level individuals) on a six monthly or annual basis to lay out a vision and strategy for the two companies, but they wouldn't be expected to meet daily or weekly. M15

In order to gain unrestricted access to stakeholders, the SRM manager needs to have:

"Skills of communication, networking, rapport building, resilience" Please refer to page number 6 of the Script for this module and to Slide Number 13. The SRM manager will need significant management support for their activities and a drive to change or transform how suppliers are managed as a key company value. They need to be allowed access to whomever, wherever in order to build the stakeholders and problem maps from which to operate. This unrestricted access therefore requires the SRM to have great communication, networking and rapport building skills. They will also need to be resilient as they may encounter organizational inertia or resistance. M22

Which of the options below is the most compelling reason to become a 'customer of choice' for strategic suppliers?

"So that they can bring us their best ideas and initiatives to give us competitive advantage" Please refer to page number 1 of the Script for this module and to Slide number 3. We need to become a 'customer of choice' for our strategic suppliers, so that those suppliers bring us their best ideas and initiatives, and that they bring them to us first, to give us competitive advantage in our markets. M1

According to author Stephen M. R. Covey in his book 'The Speed of Trust', as trust reduces, what is the effect on speed and cost?

"Speed reduces and cost increases" Please refer to page number 5 of the Script for this module and to Slide Number 10. According to author Stephen M. R. Covey in his book 'The Speed of Trust', there is a clear economic case for trust. He says that as trust reduces, speed also reduces and cost increases. And as trust increases, speed goes up and cost goes down. M17

In the Hay Competency Framework of emotional intelligence, self management is the ability to:

"Stop, reflect, communicate, agree and then act" Please refer to page number 4 of the Script for this module and to Slide Number 9. Self management is the ability to STOP, REFLECT, COMMUNICATE, AGREE and THEN ACT. (SiR CAT) M16

An SRM program should mainly focus on:

"Strategic suppliers" Please refer to page number 3 of the Script for this module and to Slide number 7. The prime focus of an SRM program is the suppliers who sit in the strategic quadrant. M4

Who may know more about your organization's operations than you do yourself?

"Strategic suppliers" Please refer to page number 5 of the Script for this module and to Slide number 11. These suppliers want to maximize their business with you, motivated by the desire for growth of their own business, measured in terms of sales targets, account plans and sales incentives. This requires them to investigate your organization, collect data and information and to create a sales strategy for selling to your organization. As such they may know more about your organization's operations than you do yourself. M2

Subjective measurement is a tool that is most suited to measuring the relationship with which type of supplier?

"Strategic" Please refer to page number 4 of the Script for this module and to Slide number 9. With strategic suppliers, it is also important to trend people's opinions on performance, basically the subjective view of the partnership. This will give good, clear insight into their performance and commitment to continuous improvement. Identify the extreme views as these may highlight potential issues that are brewing. M4

Once your SRM Program has been launched, there are two concurrent 'paths' that must be considered, strategy and culture. What are these two paths all about?

"Strategy is about tangible goals, objectives and activities. Culture considers what is required for employees to buy into the mission or vision." Please refer to page number 1 of the Script for this module and to Slide number 3. Strategy is about tangible goals, objectives and activities. The cultural path considers what is required for employees to buy into the mission or vision. The existing values, practices and behaviours within that organizational culture will be influenced by interactions, relationships, collaboration. M11

Within SRM, what is the name of a senior forum which brings together key strategic suppliers and the contracting company's senior management / supplier executive sponsors?

"Supplier council" Please refer to page number 5 of the Script for this module and to Slide number 11. One type of meeting that requires a specialized governance structure is the supplier council. This is a senior forum which brings together key strategic vendors and the contracting company's senior management / supplier executive sponsors. M15

Considering the strategic supplier coverage research, at review meetings with their strategic suppliers which of the following is considered by most customers to be the most important topic of discussion:

"Supplier performance" Please refer to page number 5 of the Script for this module and to Slide number 11. When asked what typically was discussed at Review Meetings with the supply organization, the most important aspect was considered to be the performance of the supplier. M7

When considering a sourcing strategy, selective outsourcing is used when:

"Suppliers do not have the breadth of capability to deliver all your requirements to you" Please refer to page number 4 of the Script for this module and to Slide number 8. The work that is to be sourced is sufficiently sizeable to enable the project to be broken into smaller pieces, and this could be for many reasons including the fact that a single supplier may not have the breadth of capability or capacity to deliver the full scope. M3

A supplier that shows high motivation to you as a customer and delivers products and services aligned to your business goals will most likely focus on:

"Supporting your business strategy" Please refer to page number 1 of the Script for this module and to Slide number 4. From a SRM perspective, the question that should really be asked is; 'How critical is the supplier to us and us to them?' In other words, if their service fails then your customers suffer and if you fail the supplier suffers. Which suppliers are aligned to your business strategy and which are just a tactical solution for an immediate need? M4

Which of the following is not a stage in Bruce Tuckman's model for group or team development?

"Swarming" Please refer to page number 5 of the Script for this module and to Slide number 13. In the Mid-1960s Bruce Tuckman defined the model for group or team development. The five stages are 'forming, storming, norming, performing and adjourning'. As a supplier relationship manager you will be forming many teams both internally and externally. M11

Which of the following would not be considered a principle for the delivery of SRM?

"Taking a short term view to avoid risk" Please refer to page number 8 of the Script for this module and to Slide number 20. Ensure that your suppliers understand your business strategy and how they can actively support and partner with you to achieve those goals. Having common objectives described as mutual win-win scenarios means both parties get value from the relationship which drives future commitment to the long term with short term issues being willingly resolved. In summary, by creating a spirit of partnership, that is a true partnership, where you are looking for the joint success of both your own and your suppliers' enterprises, you will achieve success in not only the outcome of your SRM program, but also in the ability to create competitive advantage. M7

Within an SRM program, which of the following is NOT a key requirement for the supplier council?

"That all your current strategic suppliers must be invited" Please refer to page number 6 of the Script for this module and to Slide number 12. The invitees are trusted partners only but not necessarily just from the strategic supplier quadrant. So the key requirements for the supplier council is to invite a cross section of suppliers to give feedback on your direction, what works and what can done differently. M15

To build the best case for successful resolution of a dispute, you should ensure which of the following occurs?

"That records have been kept to support your case" Please refer to page number 1 of the Script for this module and to Slide Number 3. The strength or weakness of your case will be decided by a wide variety of factors, including not only issues of relative power, but also many aspects of precedent, record keeping, and the appetite of each organization to prolong a potentially damaging dispute. M19

Where there is a continuing relationship with a supplier, what is it imperative to remember in case of a partial exit situation?

"That there is still a relationship to be managed" Please refer to page number 7 of the Script for this module and to Slide Number 14. This is a partial exit situation, so it is imperative to remember that there is still a relationship to be managed. M21

Which of the following is NOT one of the critical success factors outlined by Mark Darby in his book "Alliance Brand", that underpin supplier relationship management?

"The ability to identify a broad range of suppliers with whom to work" Please refer to page number 2 and 3 of the Script for this module and to Slide Numbers 5, 6 and 7. Mark Darby in his book Alliance brand outlines three critical success factors that underpin SRM. The first is the capability to create effective strategic relationships; the second is identify the right suppliers with which to have a strategic relationship and the third is to ensure there is an effective and repeatable process for relationship governance M22

Which of the following is not a part of a collaborative innovation attitude between customer and supplier?

"The ability to implement corporate governance" Please refer to page number 7 of the Script for this module and to Slide number 17. Driving a successful relationship can be summarised by three actions; collaborative innovation, managing the quality of the relationship and driving value creation...collaborative innovation... stems from four capabilities, adaptation, innovation, communication and co-operation. M7

In most contracts there is budget allocated towards managing disputes in the event that they occur:

"The costs of managing disputes are often not budgeted for" Please refer to page number 6 of the Script for this module and to Slide Number 14. Regardless of any informal escalation of a dispute between the contracting parties, both yourself as the SRM and your senior management will need to be aware of it and work with the contract manager to find a satisfactory resolution. This may absorb a lot of management time, which may not have been allocated or budgeted for in the original cost model. M19

In SRM, a typical balanced scorecard dashboard will not contain the following information:

"The current business strategy" Please refer to page number 3 of the Script for this module and to Slide number 6. The current business strategy is unlikely to be a part of the balanced scorecard. All of the other answers are certainly a part of the scorecard. M14

One of the biggest issues identified by IACCM research is the failure of both buyers and suppliers to grasp the issue of:

"The desired business outcomes and scope of requirements" Please refer to page number 3 of the Script for this module and to Slide number 6. One of the biggest issues identified by IACCM research is the failure of both buyers and suppliers to grasp the issues of desired business outcomes/goals, and scope of requirements. M6

Key outcomes for a successful relationship in an SRM program, that are considered appropriate to measure include:

"The extent to which the supplier is engaging as an equal " Please refer to page number 2 of the Script for this module and to Slide number 5. We stated in earlier modules that it is important for the Supplier Relationship Manager to have a view of what the key outcomes are for a successful relationship. Firstly, the suppliers will recognize that committing to mutual win-win scenarios helps them to drive their business growth, increases your competitive advantage and that they will be viewed as a responsible supplier, one who engages as an equal, rather than from an us versus them mentality. Secondly, using a defined relationship management framework delivers efficiencies in process through the organization and results in better performance comparisons across the measured supply base. M13

Which of the following management methods is least relevant to the management of a commodity supplier?

"The frequency with which they rotate the staff on your account" Please refer to page number 5 of the Script for this module and to Slide Number 11. Measuring the frequency with which they rotate the staff on your account is more appropriate to legacy and strategic suppliers, the other three options are very much more relevant to how a commodity supplier should be managed. M4

How is SRM defined in this program?

"The function that seeks to develop successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties" Please refer to page 5 of the Script for this module and to Slide number 13. In this program SRM is defined as 'The function that seeks to develop successful, collaborative relationships with key suppliers for the delivery of significant tangible business benefits for both parties'. M1

Within organizations, the culture of different teams can be largely set by:

"The leaders of the teams, largely by the way those leaders act on a daily basis (or fail to act)" Please refer to page number 2 of the Script for this module and to Slide Number 5. The culture of teams can be (and will be, sometimes inadvertently) set by the leaders of the two teams, largely by the way those leaders act on a daily basis (or fail to act). M17

In many jurisdictions you should expect which of the following?

"The losing party to pay the costs if a dispute goes to court" Please refer to page number 6 of the Script for this module and to Slide Number 14. In many jurisdictions, the losing party will pay costs if the dispute goes to court. M19

US legislation introduced in 2002, known as Sarbanes Oxley stipulates:

"The management tools and process that must be place to assure the integrity of financial reporting" Please refer to page number 1 of the Script for this module and to Slide number 4. Recent legislation such as Sarbanes Oxley, which stipulates the management tools and process that must be place to assure the integrity of financial reporting. M14

In considering contract changes under an SRM program, a contract variation is:

"The process whereby agreed changes are incorporated into the formal contract" Please refer to page number 5 of the Script for this module and to Slide Number 11. A contract variation is the process whereby agreed changes are incorporated into the formal contract. Of course a variation is not really a contract in its own right, but it must be viewed with the same attention as the original contract. M20

Which of the following functions is unlikely to be involved in initial discussions between a supplier and a customer?

"The project management office" Please refer to page number 2 of the Script for this module and to Slide Number 4. A delivery team will be involved once a proposal has been accepted by the customer and depending upon what the proposal is for, the following may or may not be involved as part of delivery; technical consulting, strategic engagement, outsource delivery management, project management office. M18

Considering the example of the six stage communications plan, what do we mean when we say planning and sequencing communication?

"The right set of messages and communications need to get to the right people at the right time " Please refer to page number 5 of the Script for this module and to Slide number 11. Essentially what you are looking to achieve is that the right set of messages and communications get to the right people at the right time. M12

Research suggests that for many in procurement, relationship management is:

"The same as performance management" Please refer to page number 3 of the Script for this module and to Slide number 7. The State of Flux survey reveals most procurement-based relationship managers handle 3 to 5 accounts focusing on savings and performance. Indeed, the study shows that 'relationship management' has been seen by the procurement community as another name for 'performance management'. M2

In considering aligning your SRM program with your organization's vision and strategy, how might the strategy and the culture be characterized?

"The strategy is what we do. The culture is how we do it." Please refer to page number 1 of the Script for this module and to Slide number 3. It could be said that the left hand path, the strategy is what we do. The right hand path, the culture, is how we do it. M11

We need close, collaborative relationships with:

"The suppliers which are most strategic to our future" Please refer to page number 2 of the Script for this module and to Slide number 4. We need close, collaborative relationships with that segment of our supplier base which is most strategic to our future. M1

Things that are very likely to be considered when segmenting the supply chain, include:

"The total spend with each supplier" Please refer to page number 5 of the Script for this module and to Slide Number 10. We would consider the amount we spend with a supplier, the difficulty there is in switching to another supplier, both in the cost to exit, but also the availability of others in the market place. M5

Which of the following is the least suitable measure for a strategic supplier?

"Their other customers' opinions of them" Please refer to page number 4 of the Script for this module and to Slide Number 9. Measure the market perception of your supplier, what is happening to their share price, what is their acquisition and disposal strategy, have they recently changed the management structure or executive officers and if so should you need to reconsider their strategic alignment to you? Also put metrics in place to measure their staff turnover on your account, this could be indicative of how they view you in relation to other accounts they manage. M4

Which of the following opinions describe a supplier that it is not yet a true business partner?

"They are considered a cost centre for transactional purchases" Please refer to page number 1 of the Script for this module and to Slide number 3. More companies are beginning to view suppliers differently, no longer are they simply cost centres for the issue of product or services, but rather they are becoming true business partners. This has arisen from the challenge to deliver beyond cost savings, such as identifying, gaining access to and leveraging supplier assets, expertise and capabilities. M4

In considering contract changes under an SRM program, a supplier can initiate a contract claim for which of the following reasons:

"They have been required to do more work than they agreed to" Please refer to page number 6 of the Script for this module and to Slide Number 12. The supplier can initiate a claim for a variety of reasons: 1) The customer's failure to meet responsibilities, 2) Having to do more work than agreed to, 3) Incurring more cost, 4) Having the program changed by the client outside the formal change control process. M20

In SRM we are aiming to drive an attitude where the supplier sees themselves as a 'Responsible Supplier'. What are the attributes that a responsible supplier will exhibit?

"They will use the SRM program to help them evaluate opportunities" Please refer to page number 3 of the Script for this module and to Slide Number 6. These avenues form part of the best practice approach by which a responsible strategic supplier would wish to operate with their customers. When this best practice occurs, then often a customer with a collaborative attitude will want to talk to their trusted suppliers to seek input to upcoming proposals. M18

For the SRM manager, governance refers to:

"Those activities, processes and policies involved in managing relationships" Please refer to page number 1 of the Script for this module and to Slide number 4. For the supplier relationship manager governance refers to those activities, processes and policies that support the management of the relationship process. M15

Where a business critical supplier only delivers to a specific business area of your organization and a good relationship is in place, the value of inclusion into a centralized SRM program is:

"To be questioned, so a discussion should occur with the business owner of the relationship" Please refer to page number 1 of the Script for this module and to Slide number 4. One notable point though is that you should focus more on those suppliers who have diverse relationships to your business. Where a business critical supplier only delivers to a specific area and a focussed relationship is already in existence, question the value of what would be achieved by centralizing that relationship. Will you be wasting time and energy by pursuing it? M9

As part of an SRM measurement of success process, a KPI should be constructed:

"To highlight potential improvement areas leading to achievement of business objectives" Please refer to page number 5 of the Script for this module and to Slide number 12. It is important that the achievement of KPIs results in the achievement of your business objectives. This means that, as we have described, KPIs must be carefully constructed to accurately measure performance and highlight potential improvement areas that will lead to the objective being met. M13

A business case for a benchmarking study is unlikely to specify which of the following?

"Total savings that will be achieved by the benchmarking exercise" Please refer to page number 2 of the Script for this module and to Slide number 5. You should in the first instance build a business case. The business case that you would need to develop should clearly state the purpose and intent of the benchmark and what will be focussed on. Whatever the aim, it should be specific and have boundaries in order to maintain focus on the objectives at hand. Once it is approved you may choose any or all of the other answers as an appropriate way forward. M8

In considering the challenge of managing stakeholders it has been said that "People change what they do less because they are given analysis that shifts their thinking than because they are shown a truth that influences their feelings."

"True" Please refer to page number 5 of the Script for this module and to Slide number 11. John Kotter of Harvard Business School said this. So if we can make an emotional connection to a need for change then we are more likely to gain interest and commitment. Simply presenting the output of analysis without understanding how our stakeholder's will respond to it is unlikely to drive a sustainable change. M10

If we think of communication as a cyclical activity, then the order to follow would be:

"Unaware - situated in context - exploring hypotheses - making choices - taking action - receiving feedback" Please refer to pages number 1 and 2 of the Script for this module and to the diagram in Slide number 4. If we think about any of the individuals we are communicating with about our SRM goals, the start point is to assume that they are unaware of the program and its intentions... Having placed the program within the context that is familiar to that individual, you will begin to explore hypotheses with them, such as the possible effects that the SRM program would have on them, their work, their business processes and so forth...which results in some form of action that needs to be taken, potentially by you, potentially by the stakeholder... the outcomes of those actions needs to be understood, this means you need to explore how to receive feedback so you can determine if the outcomes initially proposed have been achieved, and if not, or if they are different, then you may need to go round the cycle again. M12

When considering SRM governance requirements, the supplier should be sharing with us how they are looking to drive their revenues and other key measures, and how their team is targeted and rewarded, so that we can:

"Understand motivations, drivers and how we can contribute to their success" Please refer to page number 3 of the Script for this module and to Slide number 5. The supplier should be sharing with us how they are looking to drive their revenues and other key measures, and how their team is targeted and rewarded, so that we can understand motivations, drivers and how we can contribute to their success. M15

A key role of the SRM manager is to:

"Understand the strategy of the business" Please refer to page number 6 of the Script for this module and to Slide Number 13. The SRM management function is there to understand the strategy of the business, the mission and values, its desired behaviours and activities so that they can orchestrate a path by which the supplier can be aligned to these. M22

The desired outcome of an SRM benchmark is about?

"Understanding our position at a point in time" Please refer to page number 3 of the Script for this module and to Slide number 6. Firstly, and most importantly, a benchmark will deliver to us a statement of our current position against a reference point, it will identify our strengths and highlight where we could improve, our shortcomings... The outcome of the benchmark evaluation could allow us to validate which of several development alternatives we would like to proceed with... the benchmark will give a realistic target to aim for and a baseline from which we can move forward, a baseline which we can use to visualise our improvement. M8

When looking at a situation, a good SRM manager:

"Understands that everyone develops their own unique perspective " Please refer to page number 2 of the Script for this module and to Slide Number 6. We all have developed our own perspective of the world in which we live, so the way in which we interpret an action or situation may be different from how someone else may interpret it. Using our internal antennae to recognise other people's feelings and then develop a sense of rapport with that individual so that we can understand their perspective of the world. Our life experiences have resulted in a set of values and beliefs that create our perspective of the world, hence where some people see a problem others will see an opportunity. M16

In considering contract changes under an SRM program, a lack of contract change requests is:

"Unlikely in a long term contract" Please refer to page number 1 of the Script for this module and to Slide Number 3. In any complex situation, especially where a project extends over a long period of time, change is very likely. You should be more concerned if there isn't any change, since this would imply either weak project controls or lost opportunities. M20

When used in an SRM program measurement process, a good Key Performance Indicator is:

"Used to evaluate the organization's success or the success of a particular activity" Please refer to page number 4 of the Script for this module and to Slide number 9. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often, success is simply the repeated achievement of some level of operational goal. M13

When considering your sourcing strategy, activities or services that provide incremental benefits to the business, but do not distinguish the organization from its competitors are:

"Useful commodities" Please refer to page number 2 of the Script for this module and to Slide Number 4. Payroll and benefits management or accounting systems are typical examples in this category. Useful commodities are prime candidates for outsourcing because the business can make further gains by freeing internal resources to focus on more critical activities. Additionally, the suppliers have likely mastered this activity with lower costs and standardized work processes and may therefore offer service levels that result in higher internal user satisfaction. M3

When thinking about your sourcing strategy, these activities differentiate the organization from the competition, but in a way that is not critical to business success:

"Useful differentiators" Please refer to page number 2 of the Script for this module and to Slide number 4. Since useful differentiators are by definition non-core, there is a strong possibility that they could be undertaken more effectively and at lower cost by an external party. One aspect to consider, however, is whether they represent some future trend or asset and may therefore become a more major source of competitive advantage over time. M3

When we choose to manage our relationships with our suppliers in a segmented way:

"We are making a coordinated investment in how we manage the supply chain" Please refer to page number 1 of the Script for this module and to Slide Number 3. In the first instance we can consider segmentation as a coordinated investment in how we manage the supply chain. M5

Why do we need to provide for agility and flexibility in our agreements with suppliers?

"We may need to change contract scope, delivery times or specifications at some time" Please refer to page number 1 of the Script for this module and to Slide number 3. Nowadays, we need to have much more of an eye towards creating agreements that anticipate the later need of the two organizations to change the scope, the delivery time, the specification, the geographical reach of support services and so on. In other words, there is a need to anticipate that we'll need the agility and flexibility in our agreements to respond to later prevailing market conditions. M6

If we bring misunderstanding and unclear priorities into our contracts, then which of the following is a likely result?

"We will have confused communications between the parties and weak governance of the contract" Please refer to page number 1 of the Script for this module and to Slide number 3. The contract will act as an instrument for structured communication within both businesses, to enable us to brief our colleagues across functional departments on what the requirements and governance processes are. And of course, our trading agreements have the role of providing risk assurance, by putting boundaries around our risk for day one of the contract, and for ensuring that the risks arising from future changes are carefully considered, allocated, shared, managed and mitigated. In a strategic relationship, it is no longer sufficient to view a contract as an instrument to enforce action on the other side. We need mutual understanding and alignment of goals in our contracting, as we do in the strategic relationship as a whole. M6

In planning communications about SRM, we need to think about how SRM will deliver the ability to evolve the strategic supply chain. This thinking around the Supply side must include:

"What are the capabilities required within SRM to deliver its contribution" Please refer to page number 2 of the Script for this module and to Slide number 5. Supply: How will SRM supply the ability to evolve the strategic supply chain? What are the capabilities required within SRM to deliver its contribution? So at this point we need to think about our segmentation models, and whether we have that right. We need to think about the people involved with that supplier relationship and their attributes. M12

The fundamental question that should be asked when embarking upon a SRM program is:

"What is the desired outcome of this undertaking?" Please refer to page number 4 of the Script for this module and to Slide Number 10. The fundamental question that should be asked when embarking upon a SRM program is what is my desired outcome of this undertaking? M2

When communicating your SRM plan through a presentation, what is the first thing you should consider?

"What you want to achieve from the presentation" Please refer to page number 7 of the Script for this module and to Slide number 14. So what should you think about when creating a presentation? Firstly, what do you want to achieve from the presentation M12

When considering the skills a SRM Manager needs in addition to collaboration, the behaviour described as 'competitive' ('I win - You lose') is best used when, in a conversation with a stakeholder:

"When there is an immediate requirement for the stakeholder to comply with some kind of regulation or corporate ethic" Please refer to page number 4 of the Script for this module and to Slide number 11. The use of a competition stance is important if there is an immediate requirement for the stakeholder to comply with some kind of regulation or corporate ethic. The premise of a competitive stance is 'I win - You lose', also is useful if the other side's attitude is also highly competitive. M11

When an SRM program is in place, what is a supplier's value proposition?

"Where their portfolio of offerings and their expectations meet yours" Please refer to page number 5 of the Script for this module and to Slide Number 9. A supplier's value proposition is where their portfolio of offerings and their expectations meet yours. They are operating at a strategic role and can be said to be in their 'sweet spot'. They do not have the pressures of operating as a commodity supplier who has less reach, less trust and less tangible value to your organization. Instead, they have the ability to provide latitude and explore what serves you best as a customer. M18

Considering the example of the six stage communications plan, when we think about identifying and prioritizing our audiences in communications planning, do we need to know who is affected and to what extent?

"Yes" Please refer to page number 4 of the Script for this module and to Slide number 8. This all forms part of the prioritization process, but you also need to not only think in terms of prioritizing the importance of people but also in terms of the order by which you will address and communicate to people. M12

In communicating key messages about your SRM Program, you will always be the most appropriate person to do the actual communications activities because you are closest to the subject and have the best depth of knowledge:

"Yes" Please refer to page number 5 of the Script for this module and to Slide number 10. It might be more appropriate for you to have a senior sponsor or executive communicate a message if that carries more weight.

Is benchmarking a useful approach for determining the success of SRM process improvement initiatives?

"Yes, benchmarking can be used to validate the success of a project" Please refer to page number 1 of the Script for this module and to Slide number 3. Another option as to when we should benchmark is after we have implemented a process improvement, such as after implementing SRM. The benchmark in this case can be undertaken to validate that the process improvement has worked and delivered the intended efficiency improvement. M8

How we interpret our contractual rights can be different to how the other side views our rights, even in well constructed contracts:

"Yes, differing interpretation is possible even in well constructed contracts" Please refer to page number 2 of the Script for this module and to Slide Number 4. Parties rightly view their contractual entitlements and respective values as fundamental rights or obligations and when contractual provisions are unclear or ambiguous, the differences in the views creates 'interpretations' which in turn can cause the parties to shift from a harmonious relationship to a dispute. M19

In managing your supplier segmentation, once a supplier has been categorised, is it allowable to transfer them to a different segment at a later date?

"Yes, if their importance to us changes, they can be transitioned to a different segment" Please refer to page number 2 of the Script for this module and to Slide Number 4. The key is not to spend too long worrying about exact classification, be efficient and aim for 80% correctly allocated. Discussions and arguments can continue and there is no rule that says that you can't re-categorise a supplier into a different segment later. In fact the segmentation exercise should be repeated on a regular basis, say once a year, to ensure that there is not stagnation in the way suppliers are managed. M5

There are many outputs that arise from a benchmarking study, is it therefore wise to gain feedback on the benchmarking project?

"Yes, this feedback become part of our future lessons learned database" Please refer to page number 6 of the Script for this module and to Slide number 12. Before we consider providing the output and the report to the eventual audience we should validate and test the findings first, so that we can be confident that the story we are to present is valid and is understood and respected by the audience. Once we have delivered our findings, we should then, as with any communication plan, obtain feedback as this will feed into the lessons learned for future projects. M8

In an SRM program, is it acceptable for you to request that a key supplier's account manager be replaced because you believe them to be acting solely in the interests of the supplier?

"Yes, this is a legitimate step if you feel the relationship or contract is suffering" Please refer to page number 5 of the Script for this module and to Slide Number 11. The request for actual removal of people should not cause your company concern if the request is for a proper purpose and focused on the best interests of the contract and the relationship. But be certain to present the facts only and leave any emotive references aside. M19

You have just made an upgrade to your payment system software, but the change has resulted in a delay meeting your contracted payment date to suppliers. Is this an acceptable reason for your supplier to lodge a claim against your company?

"Yes, you have not paid according to contract, therefore the supplier has a valid claim" Please refer to page number 3 of the Script for this module and to Slide Number 6. Sometimes it's not the invoice that is the problem: a customer may withhold payment from a supplier because of organizational processing errors or inefficiencies, or quite simply not being able to pay. In these events the supplier has not been paid according to the contract and has a legitimate dispute and claim. M19

Having identified which suppliers are in which segment in a segmentation exercise, supplier performance measurement can be captured on a standard template scorecard. Is this statement correct?

"Yes, you should have a standard scorecard for measuring performance as a starting point" Please refer to page number 2 of the Script for this module and to Slide number 5. At a minimum you should create a standard process for measuring performance and if and where appropriate develop scorecards that are aligned to different categories, so maybe one for back end process suppliers (IT, HR, Finance and Accounts) and different ones for say engineering services or logistics. M5

Why is it important to segment relationships across your supply base?

"You can adopt different approaches to relationship management with your different suppliers" Please refer to page number 2 of the Script for this module and to Slide number 5. We segment the relationships across your supply base, so that you can take a differentiated approach to relationship management with different kinds of suppliers. M1

SRM is now considered to be so fundamental to business success and the creation of competitive advantage that you won't need to create SRM Introductory documents to sell the program internally?

"You were correct" Please refer to page number 1 of the Script for this module and to Slide number 3. No matter how good you believe the SRM program will be, or the benefits of including a supplier into the strategic management portfolio, you will need to sell the idea to others before the change can happen. This is because change and developing the buy-in and acceptance of change is often heavily dependent upon human behavior. M12

Of the following, who is the primary catalyst for creating engagement and development of the relationships with strategic suppliers?

"You, as the SRM Manager" Please refer to page number 1 of the Script for this module and to Slide number 3. You as the SRM manager must be the catalyst who promotes the willingness for all to be engaged and learn as the relationship grows; this requires you to ensure that the SRM program, or the inclusion of a supplier as a strategic partner, is accepted internally and does not hinder the development of the relationship; this will only erode trust. M10

You are a rapidly expanding construction organization. Your current premises are too small for your needs. You feel that a build versus buy decision is relevant in considering your expansion because:

"Your organization could choose to build or buy its own offices" Please refer to page number 1 of the Script for this module and to Slide Number 3. You could choose to build your own office, you could choose to rent an office or you could even choose to buy a new building outright. The buy decision is about utilizing a supplier to deliver you a product or service, i.e. in this case a building, where build would involve using your construction company in-house expertise to build. M3

When considering information delivery to suppliers, what information is not essential for your suppliers to understand about your business?

"Your previous business strategies" Please refer to page number 1 of the Script for this module and to Slide number 4. So make sure that when you first enter into an SRM approach with your strategic suppliers that you highlight to them your current strategy and what it is you are looking for. You need them to understand your company's upcoming priorities and therefore what offerings do they have that are pertinent to make those goals easier to achieve and give you the competitive advantage you seek. Additionally, help them to understand the market you operate within, who your customers are, what their needs and wants are. M6

Of the following who is most unlikely to be someone whose interests you will need to consider in your SRM business case?

"Your transported logistics department" Please refer to page number 6 of the Script for this module and to Slide number 13. Suppliers are not the only group that you need to focus on. There are people within your organization that need to be considered. These are your stakeholders, namely any individual, group or organization that has a demonstrable interest in the outcome of your programme. Of the choices given, the legal department is the least likely to be affected by a move to SRM. M9