Question 1

Interfirm relationships can provide a competitive advantage in knowledge sharing, the use of complementary resources or capabilities, resource specific assets and_________
A) Pricing
B) Financial planning
C) Effective governance
D) Market share

Accepted Answer

Effective governance in interfirm relationships ensures that the collaboration is managed efficiently, leading to a competitive advantage.

Question 2

Which of the following is NOT one of the C's of business relationships?
A) Contacts
B) Contracts
C) Collaboration
D) Connections

Accepted Answer

D

Question 3

Which of the following is NOT an outcome-based sourcing business model?
A) Approved provider
B) Performance based / managed services
C) Vested business model
D) Preferred provider

Accepted Answer

The "Approved provider" model is not outcome-based; it focuses on pre-approved suppliers rather than specific outcomes.

Question 4

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

Accepted Answer

The answer of A(n) _____________ relationship typically occurs when a...

Question 5

Which of the following types of relationships are buyers most likely to use a Master Services Agreement with to do repeat business more efficiently?
A) Simple transaction based
B) Approved provider
C) Preferred provider
D) All of these relationships are likely to use a Master Services Agreement

Accepted Answer

A Master Services Agreement (MSA) is typically used with a preferred provider to streamline repeat business by setting terms and conditions for future transactions, ensuring efficiency and consistency.

Question 6

An outcome-based business model pays the supplier for the realization of all of these EXCEPT:
A) Lower costs
B) Defined set of business outcomes
C) Business results
D) Achievement of agreed-on key performance indicators

Accepted Answer

An outcome-based business model focuses on paying for specific business outcomes, results, or key performance indicators, rather than just lower costs.

Question 7

This agreement is usually three to five years in length, typically require a higher level of interaction between trading partners, and pays the supplier using transaction-based pricing triggers.
A) Approved provider
B) Preferred provider
C) Performance based agreement
D) Vested outsourcing agreement

Accepted Answer

Performance-based agreements typically require a higher level of interaction between trading partners and pay the supplier using transaction-based pricing triggers.

Question 8

This relationship typically occurs when a buyer identifies a supplier that offers a unique differentiation from other suppliers and provides a cost, efficiency or other competitive advantage for the client company.
A) Approved provider
B) Preferred provider
C) Performance based agreement
D) Vested outsourcing agreement

Accepted Answer

The answer of This relationship typically occurs when a buyer...

Question 9

This relationship focuses on achieving desired outcomes, which form the basis of the agreement.
A) Approved provider
B) Preferred provider
C) Performance based agreement
D) Vested outsourcing agreement

Accepted Answer

A vested outsourcing agreement focuses on achieving desired outcomes and is based on mutual benefits and shared goals between parties.

Question 10

A ____________ structure is the establishment of an internal organization to perform key functions on behalf of an organization.
A) Shared services
B) Joint venture
C) Performance based agreement
D) Vested outsourcing agreement

Accepted Answer

Shared services structure involves creating an internal organization to handle key functions for the organization, centralizing and streamlining operations.

Question 11

Which of the following is NOT one of the elements of a good relationship management governance framework?
A) Develop a communications cadence
B) Establish communication protocols
C) Establish continuity of resources
D) Establish exit strategy

Accepted Answer

Establishing an exit strategy is not an element of a good relationship management governance framework.

Question 12

The reverse bow tie
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

Accepted Answer

The reverse bow tie model expands relationship contacts between buyers and suppliers by decentralizing interactions, allowing multiple points of contact rather than funneling through a single individual.

Question 13

When it comes to partnering, which of the following is NOT correct?
A) Equal effort should be put in by both parties
B) Both sides should have mutually agreed upon outcomes
C) Both sides should profit equally
D) All of the answers provided are true

Accepted Answer

In a partnership, it is not necessary for both sides to profit equally, as the distribution of profits can vary based on the agreement and contributions of each party.

Question 14

Which of the following is a prerequisite to supply chain success?
A) Trust
B) Collaboration
C) Time
D) A well written contract

Accepted Answer

The answer of Which of the following is a prerequisite...

Question 15

There are several key elements to a good relationship management governance framework. Which of the following is NOT one of them?
A) Establish a clear exit strategy
B) Develop a communications cadence
C) Establish communication protocols
D) Create a tiered management structure

Accepted Answer

Establish a clear exit strategy is not an element of a good relationship management governance framework.

Question 16

In highly strategic relationships a _____ should be used because it allows for more flexibility which is needed in more strategic, longer-term relationships?
A) Contract
B) Performance work statement
C) Statement of objectives
D) Mentor

Accepted Answer

A Statement of Objectives (SOO) is used in highly strategic relationships as it provides flexibility and focuses on the desired outcomes rather than detailed specifications, which is beneficial for long-term strategic partnerships.

Question 17

Which of the ten elements of a successful business agreement suggests that trading partners develop a formal management strategy that focuses on maximum integration of end-to-end business process effectiveness when at all possible?
A) Statement of Objectives / Workload Allocation
B) Performance Management
C) Shared Vision Statement
D) Relationship Management Framework

Accepted Answer

The Statement of Objectives / Workload Allocation element of a successful business agreement suggests that trading partners develop a formal management strategy that focuses on maximum integration of end-to-end business process effectiveness when at all possible.

Question 18

Which of the following is not one of the Vested Outsourcing Elements of Successful Contracts?
A) Exit Management Plan
B) Indemnification
C) Performance Metrics
D) Relationship Management Framework

Accepted Answer

Indemnification is a legal term related to protection against loss or damage, not specifically a Vested Outsourcing Element of Successful Contracts.

Question 19

What is "The Junkyard Dog Factor"?
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.

Accepted Answer

The Junkyard Dog Factor refers to a contract flaw where employees become territorial over certain processes, insisting they must remain in-house, similar to a dog guarding its territory.

Question 20

Trading partners should talk about the terms: concerns, problems, and at the formulation of the governance framework. Partners should also decide, who gets to decide if something is labeled a problem or a conflict. Why should the partners have this discussion?
A) The discussion is easy at the formulation of governance stage.
B) Partners will save countless hours of exchanging e-mails trying to decide how much attention to pay to a situation.
C) Partners can decide at what point an issue triggers a problem-solving approach.
D) All of the examples provided are reasons to have this discussion.

Accepted Answer

Having this discussion helps streamline decision-making, saves time, and establishes clear criteria for addressing issues.

Quiz 10: Managing Relationships With Customers and Suppliers

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

Which of the following is NOT one of the C's of business relationships?

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

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 types of relationships are buyers most likely to use a Master Services Agreement with to do repeat business more efficiently?

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

This agreement is usually three to five years in length, typically require a higher level of interaction between trading partners, and pays the supplier using transaction-based pricing triggers.

This relationship typically occurs when a buyer identifies a supplier that offers a unique differentiation from other suppliers and provides a cost, efficiency or other competitive advantage for the client company.

This relationship focuses on achieving desired outcomes, which form the basis of the agreement.

A ____________ structure is the establishment of an internal organization to perform key functions on behalf of an organization.

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

The reverse bow tie

When it comes to partnering, which of the following is NOT correct?

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

There are several key elements to a good relationship management governance framework. Which of the following is NOT one of them?

In highly strategic relationships a _____ should be used because it allows for more flexibility which is needed in more strategic, longer-term relationships?

Which of the ten elements of a successful business agreement suggests that trading partners develop a formal management strategy that focuses on maximum integration of end-to-end business process effectiveness when at all possible?

Which of the following is not one of the Vested Outsourcing Elements of Successful Contracts?

What is "The Junkyard Dog Factor"?

Trading partners should talk about the terms: concerns, problems, and at the formulation of the governance framework. Partners should also decide, who gets to decide if something is labeled a problem or a conflict. Why should the partners have this discussion?