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In order to pass the CIPS L4M6 exam, candidates must demonstrate an in-depth understanding of key concepts, theories, and practices related to supplier relationships. This includes a thorough understanding of how to manage supplier performance, negotiate contracts, mitigate supplier risks, and develop suppliers to ensure that they meet the needs of the organization. In addition, candidates must also demonstrate their ability to apply this knowledge to real-world scenarios and make strategic decisions that will improve supplier relationships and contribute to organizational success.
CIPS L4M6 Exam Syllabus Topics:
| Topic | Details |
|---|
| Topic 1 | - Understand the concept of partnering: This section evaluates the skills of Partnership Managers and covers the concept of partnering in supply chains. It analyzes when to use partnering, comparing it with traditional contracting agreements. A key skill assessed is appraising the process of partnership implementation. The section explores types of partnering, drivers, advantages, and suitable circumstances for this approach.
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| Topic 2 | - Understand the dynamics of relationships in supply chains: This section of the exam measures the skills of Supply Chain Managers and Procurement Specialists. It covers the different types of commercial relationships in supply chains, including internal and external relationships, the relationship spectrum, and the lifecycle. A key skill measured is the ability to differentiate between various commercial relationships. The section also explores portfolio analysis techniques to assess relationships, using matrices to identify supply, supplier, and purchaser positioning. Candidates are expected to understand competitive forces impacting supply chain relationships, including sources of competitive rivalry and STEEPLED factors.
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| Topic 3 | - Understand processes and procedures for working successfully with stakeholders: This section targets Stakeholder Relationship Managers and focuses on organizational procedures for sourcing goods and services. It covers supplier identification, assessment, and selection processes to secure successful relationships. A critical skill measured is analyzing the purpose of organizational procedures in sourcing. The section also compares team management techniques for positive stakeholder relationships, including conflict resolution and working with cross-organizational teams.
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The CIPS Supplier Relationships certification exam is suitable for procurement professionals who are involved in managing supplier relationships and are seeking to improve their understanding of the key principles, concepts and best practices that underpin effective supplier relationship management. L4M6 Exam covers a wide range of topics including the importance of supplier segmentation, supplier performance measurement, supplier collaboration, contract management, and supplier risk management.
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CIPS Supplier Relationships Sample Questions (Q10-Q15):
NEW QUESTION # 10
Partnership sourcing is often considered a 'high-risk' strategy for a buyer. Which of the following is not a risk generally associated with partnership sourcing?
- A. Supplier may become complacent
- B. Reduced waste in the supply chain
- C. Single-sourcing may leave the buyer without a supply if the supplier goes into liquidation
- D. Sharing commercially sensitive data with another party
Answer: B
Explanation:
The correct answer is 'Reduced waste in the supply chain' - this is not a risk, this is a benefit P.134
NEW QUESTION # 11
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?
- A. routine
- B. bottleneck
- C. strategic
- D. leverage
Answer: C
Explanation:
Friendly Flour Ltd is a strategic supplier; this is a critical supplier, responsible for core products. They represent a high risk impact and a high cost impact. This is the top-right hand corner of the Kraljic matrix.
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 # 12
The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?
- A. Using several suppliers instead of one
- B. Issuing POs electronically.
- C. Sharing up-to-date information
- D. Batch ordering
Answer: C
Explanation:
The logistics risk can be reduced by 'Sharing up-to-date information'. If the Pub tells the supplier when it's running low, they can then time the deliveries more accurately.
P. 136. A lot of the questions on the
'Partnerships' chapters of the book are common-sense questions like this. It involves reading thequestion and using logic, rather than relying on your knowledge of procurement. If you found this question easy - that's a good sign for the exam.
NEW QUESTION # 13
According to Michael Porter, what is procurement?
- A. a secondary activity which provides value for money
- B. a primary activity which provides value for money
- C. a primary activity which provides a source of competitive activity
- D. a support activity which provides a source of competitive advantage
Answer: D
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 # 14
A supermarket is struggling with sales and has done an analysis on its competitors. It has discovered that it has two major competitors; one provides groceries at a much cheaper price and another that provides only organic products. The supermarket has decided that it wants to continue providing groceries to a wide target audience but that it will compete by offering superior customer service. What is the supermarket's source of competitive advantage?
- A. differentiation focus
- B. differentiation
- C. cost leadership
- D. cost focus
Answer: B
Explanation:
This is differentiation as the target market is broad. Differentiation focus would be if the supermarket was targeting a niche market. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13
NEW QUESTION # 15
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