Preview Questions Procurement Specialist | Role Specific Skill

Question 1: What is the best approach to managing a contract dispute over quality issues in an electrical equipment contract?

Which action should you take?

Choose only one option

Immediately seek legal recourse through the court system

Renegotiate terms of the contract to shift responsibility for quality failures

Terminate the contract and seek a new supplier with better quality guarantees

Initiate negotiations with the vendor to resolve the issue before legal action

Question 2: How can effective contract management lead to cost reduction in procurement?

Which action should you take?

Choose only one option

By focusing on short-term, one-off purchase agreements

By ensuring that the contract price is fixed for the term

By optimizing payment terms and avoiding unnecessary penalties

By reducing supplier contracts to a minimum

Question 3: In contract negotiations, what is the primary role of a ?term of renewal' clause?

Which action should you take?

Choose only one option

It provides the option to extend the contract under predefined terms

It determines the acceptable payment methods

It sets the penalties for early termination

It defines the timeline for dispute resolution

Question 4: Which cost reduction approach focuses on reducing the cost per unit while maintaining supplier reliability?

Which action should you take?

Choose only one option

Negotiating payment terms with suppliers for discounts

Bulk purchasing from low-cost suppliers

Strategic supplier consolidation

Flexible contract terms based on supplier performance

Question 5: Which factor is most critical when drafting a contract for outsourcing assembly in the electronics industry?

Which action should you take?

Choose only one option

Clearly defined quality standards and penalties for defects

The supplier's geographical location

Payment terms and delivery dates only

Supplier's reputation and historical performance

Question 6: Which method is most effective for evaluating a vendor's financial stability during the selection process?

Which action should you take?

Choose only one option

Analyzing financial statements and credit reports

Relying on supplier performance history

Conducting a market survey of their competitors

Reviewing the vendor's geographical location