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CIPS L4M6 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Improving Supplier Relationships15%- Process improvement and value creation
- Sustainability and ethical considerations
- Risk management and resilience
Topic 2: Dynamics of Relationships in Supply Chains30%- Types of commercial relationships
  • 1. Relationship spectrum and life cycle
    • 2. Internal and external relationships
      - Sources of added value through relationships
      - Portfolio analysis techniques
      • 1. Developing improvement action plans
        • 2. Matrices for positioning and assessment
          - Competitive forces and external factors
          • 1. Porter's five forces
            • 2. STEEPLED influences
              Topic 3: Approaches to Managing Supplier Relationships35%- Relationship management strategies
              • 1. Partnership and collaborative approaches
                • 2. Contractual and relational governance
                  - Supplier selection and evaluation
                  • 1. Performance measurement and monitoring
                    • 2. Criteria and methods for selection
                      - Communication and stakeholder engagement
                      • 1. Managing internal and external stakeholders
                        • 2. Effective communication protocols
                          Topic 4: Conflict and Dispute Resolution20%- Sources of conflict in relationships
                          - Approaches to negotiation and resolution
                          • 1. Formal and informal dispute resolution
                            • 2. Negotiation styles and techniques

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                              CIPS Supplier Relationships Sample Questions (Q255-Q260):

                              NEW QUESTION # 255
                              Varying levels of commitment is one reason why many partnerships fail. Why is this?

                              Answer: C

                              Explanation:
                              The correct answer is 'It can lead to a lack of trust' - this is a quote from p.162. The other answers are all incorrect; in a partnership KPIs are joint between the parties- so there wouldn't be a situation where one party doesn't fulfil their KPIs. Commitment doesn't necessarily have a direct correlation with profit so that answer is incorrect. 'Sufficient time and resources are put in' is a positive thing, so can't be a reason who a partnership fails.


                              NEW QUESTION # 256
                              Which of the following are elements of a business that can develop a company's competitive advantage? Select THREE.

                              Answer: B,C,E

                              Explanation:
                              This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34


                              NEW QUESTION # 257
                              Grey Stone Memorial Hospital is a private medical facility which has an idea for a vaccine to a deadly disease, but does not have the capacity to make the vaccine itself. It is considering partnering with a well-known pharmaceutical company in order to bring the vaccine to market. What is the biggest risk to Grey Stone?

                              Answer: C

                              Explanation:
                              The correct answer is 'Intellectual Property Rights'. Grey Stone will need to share its idea for the vaccine with the pharmaceutical company and this is risky if there is no trust between the parties. See p.134 for more information on Risks of Partnerships.


                              NEW QUESTION # 258
                              In a monopoly market, which of the following statements is true?

                              Answer: B

                              Explanation:
                              In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39


                              NEW QUESTION # 259
                              A partnership relationship can be described as any relationship between a buyer and supplier where there is a good level of communication and both parties are happy with each other's performance. Is this statement TRUE?

                              Answer: A

                              Explanation:
                              The correct answer is 'No- good levels of communication can exist in other types of relationships'. The study guide makes a point that not all good buyer: supplier relationships are partnerships. In fact 70% on supplier relationships will not be partnerships (according to Lambert who is quoted on p.131)


                              NEW QUESTION # 260
                              ......

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