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CIPS L4M6 Exam Syllabus Topics:

Section	Weight	Objectives
Conflict and Dispute Resolution	20%	- 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 Relationships	35%	- Supplier selection and evaluation 1. Performance measurement and monitoring 2. Criteria and methods for selection - Communication and stakeholder engagement 1. Effective communication protocols 2. Managing internal and external stakeholders - Relationship management strategies 1. Partnership and collaborative approaches 2. Contractual and relational governance
Dynamics of Relationships in Supply Chains	30%	- Competitive forces and external factors 1. Porter's five forces 2. STEEPLED influences - 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
Improving Supplier Relationships	15%	- Risk management and resilience - Sustainability and ethical considerations - Process improvement and value creation

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CIPS Supplier Relationships Sample Questions (Q191-Q196):

NEW QUESTION # 191
Which of the following are examples of a collaborative partnering relationship? Select TWO that apply.

A. Co-destiny
B. Arm's length
C. Transactional
D. Adversarial
E. Strategic alliance

Answer: A,E

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 # 192
What is a disadvantage of including qualitative KPIs into a contract?

A. They can lead to poor supplier performance
B. They pull focus from the more important quantitative KPIs
C. They are hard to measure
D. They make the buyer seem weak

Answer: C

Explanation:
The correct answer is 'They are hard to measure' p.103

NEW QUESTION # 193
Danny is procuring a new IT software, which he doesn't know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny's next step?

A. Issue a RFI
B. Issue an OJEU
C. Issue a RFQ
D. Issue an ITT

Answer: A

Explanation:
Danny should issue a RFI (Request for Information). His next step would be to find out more about the products available by asking suppliers for information- this will help him put a spec together before he goes out to tender. The other options mean; RFQ - request for quotation- when you ask suppliers to submit a price. ITT- Invitation to tender - a document you send out to suppliers which details all the information about the tender (this usually involves both price and quality components of assessment). OJEU- Official Journal of the European Union- where tenders for the Public Sector are published. For more info on RFI see p.74

NEW QUESTION # 194
In the Purchasing Portfolio Matrix, a bottleneck product is one which is purchased in a small quantity but has the potential to halt production at a factory. Is this TRUE or FALSE?

A. True, the product is in a supply market with low complexity and is of high importance
B. True, the product is in a supply market which is highly complex and is of low importance
C. False, the product is in a supply market which is highly complex and is of high importance
D. False, the product is in a supply market with low complexity and is of low importance

Answer: B

Explanation:
In the Kraljic Purchasing Portfolio Matrix, bottleneck items are:
* Low value/low spend (low importance to profit impact).
* High supply risk (complex or limited supplier market).
Even though the spend is low, their absence can halt production because alternatives are limited. This makes them strategically significant despite their low financial importance.

NEW QUESTION # 195
Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?

A. Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer
B. No- Andrew should use an alternative supplier
C. Yes- partnership sourcing will improve sales figures
D. No- Andrew should outsource the vanilla extract.

Answer: A

Explanation:
The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this Question: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern - it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam

NEW QUESTION # 196
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