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CIPS L4M6 Exam Syllabus Topics:

SectionWeightObjectives
Improving Supplier Relationships15%- Sustainability and ethical considerations
- Process improvement and value creation
- Risk management and resilience
Conflict and Dispute Resolution20%- Approaches to negotiation and resolution
  • 1. Negotiation styles and techniques
    • 2. Formal and informal dispute resolution
      - Sources of conflict in relationships
      Approaches to Managing Supplier Relationships35%- Relationship management strategies
      • 1. Contractual and relational governance
        • 2. Partnership and collaborative approaches
          - Communication and stakeholder engagement
          • 1. Effective communication protocols
            • 2. Managing internal and external stakeholders
              - Supplier selection and evaluation
              • 1. Performance measurement and monitoring
                • 2. Criteria and methods for selection
                  Dynamics of Relationships in Supply Chains30%- Types of commercial relationships
                  • 1. Relationship spectrum and life cycle
                    • 2. Internal and external 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
                              - Sources of added value through relationships

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                              CIPS Supplier Relationships Sample Questions (Q238-Q243):

                              NEW QUESTION # 238
                              Which of the following are examples of a collaborative partnering relationship? Select TWO that apply.

                              Answer: B,C

                              Explanation:
                              Comprehensive and Detailed Explanation:
                              Collaborative partnering relationships are characterized by high levels of trust, mutual objectives, shared information, and long-term commitment. Among the options provided:
                              * Co-destiny: This represents the highest level of collaboration, where both parties' futures are closely linked, and decisions are made jointly for mutual benefit.
                              * Strategic alliance: This involves a formal agreement between organizations to pursue shared objectives while remaining independent entities.
                              These relationship types are positioned on the collaborative end of the relationship spectrum, emphasizing joint efforts and shared success.
                              Reference:
                              CIPS L4M6 Study Guide


                              NEW QUESTION # 239
                              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: D

                              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 # 240
                              What are service credits?

                              Answer: C

                              Explanation:
                              The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"


                              NEW QUESTION # 241
                              Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce.
                              Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?

                              Answer: B

                              Explanation:
                              Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)


                              NEW QUESTION # 242
                              A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren't very expensive to buy. What type of supplier is the supplier of mixer valves?

                              Answer: D

                              Explanation:
                              This is a bottleneck supplier- refer to the Kraljic matrix on p.20; these types of supplier hold a monopoly in the marketplace and provide low-value items. There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix


                              NEW QUESTION # 243
                              ......

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