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CIPS L4M6 Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Dynamics of Relationships in Supply Chains	30%	- Competitive forces and external factors 1. STEEPLED influences 2. Porter's five forces - Types of commercial relationships 1. Internal and external relationships 2. Relationship spectrum and life cycle - Sources of added value through relationships - Portfolio analysis techniques 1. Developing improvement action plans 2. Matrices for positioning and assessment
Topic 2: Improving Supplier Relationships	15%	- Process improvement and value creation - Sustainability and ethical considerations - Risk management and resilience
Topic 3: Conflict and Dispute Resolution	20%	- Sources of conflict in relationships - Approaches to negotiation and resolution 1. Formal and informal dispute resolution 2. Negotiation styles and techniques
Topic 4: Approaches to Managing Supplier Relationships	35%	- Relationship management strategies 1. Partnership and collaborative approaches 2. Contractual and relational governance - Communication and stakeholder engagement 1. Effective communication protocols 2. Managing internal and external stakeholders - Supplier selection and evaluation 1. Criteria and methods for selection 2. Performance measurement and monitoring

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CIPS Supplier Relationships Sample Questions (Q217-Q222):

NEW QUESTION # 217
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn't hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?

A. Keep them satisfied- they will be wearing the uniform so need to be happy with it
B. Minimal effort is required as they do not hold a lot of power in the business.
C. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
D. Manage them closely- they're key players in this procurement activity

Answer: C

Explanation:
The housekeeping team have low power and high interest. According to Mendelow's stakeholder matrix, this puts them in the bottom right corner which is 'keep informed'. See p.81 for more information

NEW QUESTION # 218
Which one of the following would constitute a succession issue when terminating a relationship?

A. Processing penalties
B. Continuity of supplies
C. Payment of old invoices
D. Deletion of old specifications

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
Succession issues pertain to the challenges associated with ensuring the uninterrupted supply of goods or services when transitioning from one supplier to another. Continuity of supplies is a primary concern, as any disruption can impact operations, customer satisfaction, and revenue. Effective succession planning involves:
* Identifying Alternative Suppliers:Ensuring that backup suppliers are in place and capable of meeting requirements.
* Knowledge Transfer:Facilitating the transfer of critical information and processes to new suppliers.
* Inventory Management:Maintaining adequate stock levels during the transition period.
Other options listed, such as processing penalties, deletion of old specifications, and payment of old invoices, are administrative tasks that, while important, do not directly relate to succession planning.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 219
A confectionery company has a portfolio of different items to sell. Their most popular product is the chocolate brownie cake, but they have begun to trial sales of cereal bars, granola cereal, and chewing gum. As a high- quality producer in a competitive market, the company requires effective supplier sourcing arrangements.
Which ONE of the following product lines would be the most suitable for partnership sourcing?

A. Granola cereal
B. Chewing gum
C. Cereal bars
D. Chocolate brownie cake

Answer: D

Explanation:
Comprehensive and Detailed Explanation:
Partnership sourcing is most appropriate for products that are critical to the buyer's business, involve high spend, and are technically complex or require innovation. The chocolate brownie cake is the company's most popular product, indicating high sales volume and strategic importance. Establishing a partnership with suppliers for this product can lead to benefits such as improved quality, innovation, and supply chain efficiency.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION # 220
Which circumstances make a buyer more attractive to the supplier?

A. When the buyer negotiates longer credit terms
B. When the buyer is very procedural in its systems
C. Where the buyer exercises a stringent code of conduct
D. Where the brand profile is high

Answer: C,D

Explanation:
Buyers with a strong brand profile and adherence to ethical standards attract suppliers, as they provide market prestige and assurance of fair practices. This aligns with CIPS's emphasis on ethical procurement.

NEW QUESTION # 221
Which of the following relationship types are characterised by low levels of trust? Select TWO options

A. Arm's Length
B. Outsourced
C. Partnership
D. Adversarial
(Correct)
E. Single- Sourced

Answer: A,D

Explanation:
Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum

NEW QUESTION # 222
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