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CIPS L4M6 Exam Syllabus Topics:

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

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CIPS Supplier Relationships Sample Questions (Q154-Q159):

NEW QUESTION # 154
A textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers. Which commercial relationship type would be most effective for the buyer to choose?

A. Adversarial
B. Partnership
C. Closer tactical
D. Outsourcing

Answer: A

Explanation:
For low-value, non-recurring items with many suppliers, an adversarial relationship focusing on competitive pricing and minimal engagement is most appropriate. Partnerships are unnecessary for such transactions.

NEW QUESTION # 155
In public sector procurement, according to EU legislation, certain items must be procured via open- competition. What type of items are these?

A. Items that are imported from outside the EU
B. Items of strategic importance
C. Items of high value
D. Items that are produced by lots of suppliers

Answer: C

Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'.
These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75

NEW QUESTION # 156
The purpose of supplier pre-qualification is to identify suppliers that have the financial stability to assist in continuous supply. Is this statement TRUE?

A. Yes, because profitability ratios are always used to determine the most suitable potential supplier
B. Yes, although the sustainability of supply should be determined by considering other factors
C. No, financial stability can be determined by accountants only
D. No, the most important aspect of determining supplier suitability is by trial orders

Answer: B

Explanation:
Supplier pre-qualification is used to assess the suitability, capacity, and stability of suppliers before awarding contracts. While financial stability is important, CIPS emphasizes that it is not the only factor. Other considerations include technical capability, quality assurance, compliance with legislation, and sustainability of supply. Profitability ratios alone cannot determine suitability.

NEW QUESTION # 157
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.

A. The supplier made one late delivery
B. The supplier suddenly increases prices
C. Supply base rationalisation
D. The supplier becomes insolvent
E. The supplier has a change in senior management

Answer: A,E

Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.

NEW QUESTION # 158
What is a disadvantage of including qualitative KPIs into a contract?

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

Answer: B

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

NEW QUESTION # 159
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