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CIPS L4M6 Exam Syllabus Topics:

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

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                              CIPS Supplier Relationships Sample Questions (Q171-Q176):

                              NEW QUESTION # 171
                              Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE

                              Answer: A,B,E

                              Explanation:
                              You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76


                              NEW QUESTION # 172
                              Which of the following characteristics would appear in the Supplier Preferencing Model when a buyer has a high spend with a supplier? Select TWO that apply.

                              Answer: A,B

                              Explanation:
                              In the Supplier Preferencing Model:
                              * Core: A buyer with high spend and high attractiveness is viewed as critical by the supplier, encouraging strategic collaboration.
                              * Exploitable: Where buyer spend is high but power is lower, suppliers may exploit the situation by raising prices or setting unfavorable terms.
                              These are the two scenarios associated with high spend buyers.


                              NEW QUESTION # 173
                              ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

                              Answer: B

                              Explanation:
                              As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details


                              NEW QUESTION # 174
                              Which of the following relationship types are characterised by low levels of trust? Select TWO options

                              Answer: D,E

                              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 # 175
                              What is collaborative inertia?

                              Answer: C

                              Explanation:
                              The correct answer is 'A situation when the apparent output from collaboration is considerably less than expected'. This is verbatim the definition given in the study guide on p.166 A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.


                              NEW QUESTION # 176
                              ......

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