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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. Performance measurement and monitoring
            • 2. Criteria and methods for selection
              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%- Portfolio analysis techniques
                  • 1. Matrices for positioning and assessment
                    • 2. Developing improvement action plans
                      - Sources of added value through relationships
                      - Competitive forces and external factors
                      • 1. STEEPLED influences
                        • 2. Porter's five forces
                          - Types of commercial relationships
                          • 1. Relationship spectrum and life cycle
                            • 2. Internal and external relationships
                              Improving Supplier Relationships15%- Sustainability and ethical considerations
                              - Risk management and resilience
                              - Process improvement and value creation

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                              CIPS Supplier Relationships Sample Questions (Q76-Q81):

                              NEW QUESTION # 76
                              Mendelow's Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?

                              Answer: A

                              Explanation:
                              The correct answer is 'The Matrix doesn't consider whether the stakeholder is for or against the activity'. For a list of other limitations of using Mendelow's Stakeholder Matrix see p.82


                              NEW QUESTION # 77
                              A partnership was created between a company and one of its local suppliers when the managing directors of each company met and thought partnering could be a good idea. No other departments were included in the discussions. The partnership has been in place for over a year, but neither of the companies has achieved any additional benefits. The company has been unable to offer any increased business to the supplier, and the supplier has been unable to improve on the quality of its products. The partnership is going to be terminated.
                              What is a possible main reason for the failure of the partnership?

                              Answer: A

                              Explanation:
                              Partnerships require careful planning, including alignment of goals, stakeholder involvement, and clear expectations. Poor planning leads to unmet objectives and lack of value generation, as highlighted by CIPS.


                              NEW QUESTION # 78
                              Which of the following relationship types are characterised by low levels of trust? Select TWO options

                              Answer: A,B

                              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 # 79
                              One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:

                              Answer: B

                              Explanation:
                              The correct answer is Measurable, achievable and time-bound. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.


                              NEW QUESTION # 80
                              Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to 'Contract Frustration'. What could be the reason for this?

                              Answer: D

                              Explanation:
                              The correct answer is 'An unexpected incident has occurred beyond anyone's control'. A good example of this would be the Covid-19 pandemic- neither the buyer nor supplier could have predicted this, and if this means that the contract can't be completed - then the contract can be terminated (in the UK at least). A way to avoid this would be to include a Force Majeur clause listing possible circumstances that could occur. When there's a Force Majeur clause, these eventualities are now classed as foreseen rather than unforeseen. See p.108


                              NEW QUESTION # 81
                              ......

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