Free CIPS L4M6 Exam Questions & Answer from Training Expert VCEDumps [Q58-Q72]

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Free CIPS L4M6 Exam Questions and Answer from Training Expert VCEDumps

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Passing the CIPS L4M6 Certification Exam demonstrates that the candidate has a solid understanding of supplier relationship management and is capable of managing supplier relationships effectively. CIPS Supplier Relationships certification is recognized globally and is highly valued by employers in the procurement and supply chain industry. Candidates who pass the exam are awarded the CIPS L4M6 Certificate in Supplier Relationships, which is a testament to their commitment to professional development and expertise in procurement and supply chain management.

CIPS L4M6 exam covers a wide range of topics related to supplier relationship management, including supplier selection, evaluation and monitoring, contract management, supplier performance measurement, and supplier development. L4M6 exam is designed to test the candidate’s understanding of the best practices and techniques for managing supplier relationships and maximizing the value of supplier partnerships.

NEW QUESTION 58
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket’s profitability. What should Sandra do first?

Obtain business approval to terminate the contract

Develop an exit strategy

Review the market and look for an alternative supplier

Give written notice to the supplier of plans to terminate

The first step is to obtain business approval to terminate. If Senior Management don’t give approval, then the rest of the stages can’t happen and Sandra will be stuck with her current banana supplier. There’s a good diagram on p.109 detailing the steps to supplier termination.

NEW QUESTION 59
A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.

Changes in the composition of the supply market

Levels of supply availability in the market have decreased

The buyer no longer believes in the value of partnership relationships

The supplier has decided that it no longer wishes to keep the buying organisation as a customer

Poor communication by the supplier

Comprehensive and Detailed Explanation:
The buying organisation’s decision to terminate the partnership with supplier FGH is influenced by:
* Changes in the composition of the supply market: The entry of new suppliers into the market provides the buying organisation with more options, reducing dependency on FGH and enabling the pursuit of better partnerships.
* Poor communication by the supplier: FGH’s lack of proactive communication regarding delivery delays has led to frustration, indicating a breakdown in the partnership’s effectiveness.
These factors align with the principles of supplier relationship management, where effective communication and adaptability to market changes are crucial.
Reference:
“Poor communication by the supplier” and “Changes in the composition of the supply market” are valid reasons for terminating a supplier relationship.- Docsity: CIPS Supplier Relationships L4M6 Questions and Answers

NEW QUESTION 60
Agile Cars Ltd is creating a ‘lean’ business model which involves receiving deliveries of components only when they are required. Which of the following ‘wastes’ is being removed from the business?

Transportation

Defects

Over-production

Inventory

This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don’t need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it’s worth remembering.

NEW QUESTION 61
Which of the following are considered part of the ‘5 Rights of Procurement’? Select THREE.

place

quality

cost

focus

time

The 5 Rights of procurement are; place, quality, quantity, time, price. (Price and Cost are not the same thing).
See p.38

NEW QUESTION 62
Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

Strategic

Leverage

Non-critical

Bottleneck

Comprehensive and Detailed Explanation:
In the Kraljic Matrix, a ‘Bottleneck’ item is characterized by low financial impact but high supply risk. These items may be sourced from a limited number of suppliers or involve complex logistics, making them susceptible to supply disruptions. Managing bottleneck items requires strategies focused on risk mitigation, such as developing alternative suppliers or holding strategic stock reserves.
Reference:
CIPS L4M6 Study Guide

NEW QUESTION 63
In a partnership who is responsible for decision making?

The project steering committee

Both the supplier and the buyer

The buyer

The supplier

The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc.
See p.152

NEW QUESTION 64
The Kraljic Model is most useful for which aspect of procurement?

category management

cost analysis

risk management

cost reduction

The Kraljic model “plays a key part in category management” p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.

NEW QUESTION 65
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal?
Select THREE

Full pricing information

Liquidity Ratio

Risk Assessments

Method Statements

Gearing Ratio

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 66
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender.
What purpose would this serve?

To ensure suppliers know the deadline for tender submission

To ensure suppliers can find the opportunity

To ensure more suppliers bid for the tender

To ensure only qualified suppliers bid for the tender

CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes arediscussed on p.
72 but not in much detail- so don’t worry if you don’t know much about them. So long as you know the above, you’ll be fine.

NEW QUESTION 67
Which of the following is a valid reason for ending a relationship with a supplier?

the supplier delivered one delivery late

force majeur

the contract has ended

the supplier has a new CEO who you don’t like

CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is ‘the contract has ended’.

NEW QUESTION 68
Which of the following are advantages for the buyer of early supplier involvement with the buyer’s product development team?

1 and 2 only

1 and 3 only

2 and 3 only

2 and 4 only

Early supplier involvement ensures the supplier understands process timelines and allows the buyer to leverage supplier capabilities. This improves product development efficiency and enhances outcomes.

NEW QUESTION 69
You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

threat of substitution

threat of new entrant

supplier power

buyer power

This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter’s 5 Forces – see p. 39

NEW QUESTION 70
Which of the following relationship types would you consider using for a Main Contractor on a building construction project, who will be responsible for co-ordinating the activities of other suppliers?

partnership

transactional

closer tactical

co-destiny

in tiered supply chains, a closer-tactical relationship could be used between a buyer and a supplier who will be responsible for co-ordinating the activities of other suppliers (p.8 of the textbook).

NEW QUESTION 71
Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?

Equality

Environment

Equity

Ethics

Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es

NEW QUESTION 72
A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?

Partnering relationship

Cost-based relationship

Quality-based relationship

Traditional contracting relationship

Comprehensive and Detailed Explanation:
In scenarios requiring specialized expertise and collaborative input, apartnering relationshipis most appropriate. This type of relationship fosters close cooperation, shared goals, and mutual trust, enabling both parties to contribute effectively to the project’s success.
Reference:
CIPS L4M6 Study Guide

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Free CIPS L4M6 Exam Questions & Answer from Training Expert VCEDumps [Q58-Q72]

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