Newly Released CIPS L4M6 Exam PDF

Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter’s Five Forces model.

Comprehensive and Detailed Explanation:

In the Kraljic Matrix, a 'Bottleneck' item is characterized by low financial impact but high supply risk. These items may be sourced from a limited number of suppliers or involve complex logistics, making them susceptible to supply disruptions. Managing bottleneck items requires strategies focused on risk mitigation, such as developing alternative suppliers or holding strategic stock reserves.

Comprehensive and Detailed Explanation:

For high-value and high-risk contracts, such as facilities management services for multiple schools,competitive tenderingis the most appropriate sourcing approach. This process involves inviting multiple suppliers to submit bids, ensuring transparency, fairness, and the opportunity to assess various proposals to select the most suitable supplier. It helps in mitigating risks and achieving value for money.

Partnering supports supply chain consolidation and continual improvement by fostering collaboration and shared objectives. These benefits align with the strategic goals of building resilient and efficient supply chains.