L5M7 CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Free Practice Exam Questions (2025 Updated)

The guide distinguishes a simple chain from a“supply network,”emphasisingmulti-tier interdependencies. Short extract: “supply networks reflect multiple interdependent tiers.” (L5M7 Study Guide, p.4)

A downstream supplier influencesmost aspects of qualitybutnot customer perception, which is shaped bymarketing and brand functions.

Short cited term: “except customer perception, influenced by marketing” (L5M7 Study Guide, p. 30).

Porter’sFocus Strategyinvolvestargeting a niche marketto meet unique needs better than competitors.

Short cited term: “focus – targeting a narrow market segment” (L5M7 Study Guide, p. 52).

Quality assurance (QA)isproactive, including activities such assupplier approval/vetting;inspectionis reactive sampling of outputs. Short extract: “QA—proactive systems e.g., supplier approval; inspection—sampling outputs.” (L5M7 Study Guide, p.123)

Risk management seeks toprevent and mitigate major risks, whiletolerating low-impact riskswhen elimination isn’t feasible.

Short cited extract: “Low-level risks can be tolerated if likelihood and impact are minimal.” (L5M7 Study Guide, p.49)