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CIPS L4M6 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Supplier Relationships
Exam Number:	L4M6
Exam Format:	Multiple choice
Available Languages:	English
Exam Price:	N/A (included in course fees)
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Real Exam Qty:	50
Exam Duration:	90 minutes
Passing Score:	50
Certificate Validity Period:	N/A (exam module within diploma)
Sample Questions:	CIPS L4M6 Sample Questions
Exam Way:	Online proctored or paper-based (depending on exam centre)
Pre Condition:	No formal prerequisites, but recommended to complete L4M1-L4M5 or have equivalent procurement experience
Official Syllabus URL:	https://www.cips.org/

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CIPS L4M6 Valid Test Answers - Test L4M6 Cram

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CIPS L4M6 Exam is a comprehensive assessment designed to test the knowledge and skills of procurement professionals when it comes to managing supplier relationships. L4M6 exam is part of the Chartered Institute of Procurement and Supply (CIPS) Level 4 Diploma in Procurement and Supply, and passing it is a requirement for those who want to progress to the next level of the program.

CIPS Supplier Relationships Sample Questions (Q40-Q45):

NEW QUESTION # 40
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

A. outsource
B. arms length
C. strategic alliance
D. transactional

Answer: C

Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details

NEW QUESTION # 41
According to Michael Porter, what is procurement?

A. a secondary activity which provides value for money
B. a primary activity which provides a source of competitive activity
C. a support activity which provides a source of competitive advantage
D. a primary activity which provides value for money

Answer: C

Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development

NEW QUESTION # 42
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.

A. competition is at its highest level possible
B. suppliers are selling differentiated products
C. there are no barriers to entry
D. competition is not strong

Answer: A,C

Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40

NEW QUESTION # 43
A partnership approach to a buyer-supplier relationship, as opposed to a traditional adversarial approach, would have which of the following characteristics?

A. Increased supplier contractual terms
B. Specifications designed by the buyer
C. Greater levels of transparency
D. Shared cost benefits

Answer: C,D

Explanation:
Partnerships are built on trust and transparency, with shared benefits such as cost reductions and improved processes. Adversarial relationships, in contrast, focus on price and contractual obligations.

NEW QUESTION # 44
Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive 'value for money'. Which of the following should Jenny consider when drafting her ITT?

A. Availability
B. Equity
C. Price only
D. Whole life costs

Answer: D

Explanation:
Jenny should consider whole life costing. Ensuring value for money means considering a combination of price and quality throughout the lifetime of the product. See p.65 for more on 'Achieving Value for Money'

NEW QUESTION # 45
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