Question 1

Managing complex relationships with buyers and customers is critical to firm performance.

Accepted Answer

A) True 
 B)False  True

Question 2

One way to encourage greater cost efficiencies and innovation is for the supplier to transfer knowledge to the buyer.

Accepted Answer

A) True 
 B)False  False

Question 3

A(n) _____________ relationship typically occurs when a buyer identified a supplier that offers a unique differentiation from other suppliers and provides a cost, efficiency or other competitive advantage for the client company.

Accepted Answer

A)   Simple transaction based
B)   Approved provider
C)   Preferred provider
D)   Vested B

Question 4

Which of the following is a prerequisite to supply chain success?

Accepted Answer

A)   Trust
B)   Collaboration
C)   Time
D)   A well written contract

Question 5

The most strategic relationships often are used when there is a need to drive innovation that can lead to a competitive advantage between the trading partners.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT an outcome-based sourcing business model?

Accepted Answer

A)   Approved provider
B)   Performance based / managed services
C)   Vested business model
D)   Preferred provider

Question 7

To be successful, partners must develop mechanisms to govern the relationship.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT one of the elements of a good relationship management governance framework?

Accepted Answer

A)   Develop a communications cadence
B)   Establish communication protocols
C)   Establish continuity of resources
D)   Establish exit strategy

Question 9

The goal of an exit management strategy is to establish a fair plan and keep the parties whole in the event of a separation when the separation is not a result of poor performance.

Accepted Answer

A) True 
 B)False

Question 10

When selecting the appropriate sourcing business model one should consider the risk/rewards in the context of the goals of the relationship.

Accepted Answer

A) True 
 B)False

Question 11

Transaction based business models are best suited when a buyer is seeking a commodity with standardized and stable specifications that are easily measured through a commonly understood set of metrics.

Accepted Answer

A) True 
 B)False

Question 12

Conventional approaches to buyer-supplier relationships are outcome based and keep trading partners at arm's length.

Accepted Answer

A) True 
 B)False

Question 13

A well structured, outcome-based agreement compensates a supplier's higher risk with higher reward.

Accepted Answer

A) True 
 B)False

Question 14

The relationship management framework should clearly spell out the framework of the agreement, which includes in part the pricing model, statement of intent and performance management.

Accepted Answer

A) True 
 B)False

Question 15

The reverse bow tie

Accepted Answer

A)   Expands relationship contacts between buyers and suppliers
B)   Funnels all of the relationships to one person
C)   Is typically used in transaction based business models
D)   Is risky to implement in commodity based markets

Question 16

Interfirm relationships can provide a competitive advantage in knowledge sharing, the use of complementary resources or capabilities, resource specific assets and_________

Accepted Answer

A)   Pricing
B)   Financial planning
C)   Effective governance
D)   Market share

Question 17

An outcome-based business model pays the supplier for the realization of all of these EXCEPT:

Accepted Answer

A)   Lower costs
B)   Defined set of business outcomes
C)   Business results
D)   Achievement of agreed-on key performance indicators

Question 18

An equity partnership can take different legal forms, but often require the strategic interweaving of infrastructure and co-investment from the partners.

Accepted Answer

A) True 
 B)False

Question 19

A recent survey by the IACCM shows the biggest divide between trading partners today is in how they calculate liquidated damages at the completion of the contract term.

Accepted Answer

A) True 
 B)False

Question 20

What is "The Junkyard Dog Factor"?

Accepted Answer

A)   A contract flaw that results in employees hunkering down and staking their territorial claim to certain processes that "simply must" stay in house.
B)   A contract flaw where the supplier or service provider is paid for every transaction-regardless of whether or not it is needed.
C)   A contract flaw where, rather than establish the highest level of savings achievable as early as possible (which would be most beneficial to the buying company) , the provider will sandbag and offer up the savings in smaller increments over time.
D)   A contract flaw where companies believe mistakenly, that if something is good for the trading partner, then it's automatically bad for them.

Exam 10: Managing Relationships With Customers and Suppliers

Managing complex relationships with buyers and customers is critical to firm performance.

One way to encourage greater cost efficiencies and innovation is for the supplier to transfer knowledge to the buyer.

A(n) _____________ relationship typically occurs when a buyer identified a supplier that offers a unique differentiation from other suppliers and provides a cost, efficiency or other competitive advantage for the client company.

Which of the following is a prerequisite to supply chain success?

The most strategic relationships often are used when there is a need to drive innovation that can lead to a competitive advantage between the trading partners.

Which of the following is NOT an outcome-based sourcing business model?

To be successful, partners must develop mechanisms to govern the relationship.

Which of the following is NOT one of the elements of a good relationship management governance framework?

The goal of an exit management strategy is to establish a fair plan and keep the parties whole in the event of a separation when the separation is not a result of poor performance.

When selecting the appropriate sourcing business model one should consider the risk/rewards in the context of the goals of the relationship.

Transaction based business models are best suited when a buyer is seeking a commodity with standardized and stable specifications that are easily measured through a commonly understood set of metrics.

Conventional approaches to buyer-supplier relationships are outcome based and keep trading partners at arm's length.

A well structured, outcome-based agreement compensates a supplier's higher risk with higher reward.

The relationship management framework should clearly spell out the framework of the agreement, which includes in part the pricing model, statement of intent and performance management.

The reverse bow tie

Interfirm relationships can provide a competitive advantage in knowledge sharing, the use of complementary resources or capabilities, resource specific assets and_________

An outcome-based business model pays the supplier for the realization of all of these EXCEPT:

An equity partnership can take different legal forms, but often require the strategic interweaving of infrastructure and co-investment from the partners.

A recent survey by the IACCM shows the biggest divide between trading partners today is in how they calculate liquidated damages at the completion of the contract term.

What is "The Junkyard Dog Factor"?