CIPS L4M6 Test Engine Practice Test Questions, Exam Dumps
100% Free L4M6 Daily Practice Exam With 265 Questions
CIPS L4M6 exam is an internationally recognized qualification that is highly regarded by employers in the procurement and supply chain industry. The qualification is suitable for procurement professionals who are looking to advance their careers and take on more senior roles within their organizations. The CIPS L4M6 exam is also an excellent choice for individuals who are looking to specialize in supplier relationship management and develop their expertise in this area.
CIPS L4M6 certification exam is aimed at procurement professionals who are looking to advance their careers and take on more senior roles within their organizations. L4M6 exam is also ideal for individuals who are looking to enhance their knowledge and skills in the area of supplier relationships, and who are interested in pursuing a career in procurement.
In order to pass the CIPS L4M6 exam, candidates must demonstrate a strong understanding of the principles of supplier relationship management, as well as the ability to apply these principles in practice. This requires a combination of theoretical knowledge and practical experience. To prepare for the exam, candidates can take advantage of a range of resources, including study materials provided by CIPS, online courses, and practice exams.
NEW QUESTION # 156
What is collaborative inertia?
- A. When a partnership is unable to create new ideas
- B. Where a third party is invited to join a partnership.
- C. the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts
- D. A situation when the apparent output from collaboration is considerably less than expected
Answer: D
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 # 157
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.
- A. There are many suppliers in the market
- B. The product is a commodity
- C. The product is critical for the buyer
- D. The supplier provides the product to a buyer's competitor
- E. The product is technically complex
- F. The buyer has a high spend with the supplier
Answer: C,E,F
Explanation:
Drivers for partnership include a high spend with the supplier, criticality of the product, and technical complexity. These factors encourage collaboration for cost efficiency, quality improvement, and risk management. Partnerships are less likely when there are many suppliers or the product is a commodity, as competition and standardization reduce the need for close collaboration.
NEW QUESTION # 158
Which of the following is a characteristic of a traditional contracting agreement?
- A. Emphasis on quality assurance based on zero defects
- B. Emphasis on single source arrangement
- C. Emphasis on short-term business relationships
- D. Emphasis on mutual trust between purchaser and supplier
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Traditional contracting agreements are typically characterized by:
* Short-Term Focus:These agreements often prioritize immediate needs over long-term collaboration.
* Transactional Nature:Emphasis is on price and terms rather than building strategic partnerships.
Reference:
"L4M6 Summarised Note"- Evocurement: L4M6 Summarised Note
NEW QUESTION # 159
A competitor develops an alternative type of vacuum cleaner to one produced by your organization. Is this an example of the threat of substitutes, one of the five forces of competition described by competitive forces theory?
- A. No, it is a threat from a new entrant to the market
- B. Yes, there are no barriers to entry; it is an oligopoly
- C. No, it does not serve the same purpose
- D. Yes, customers may switch to alternative products
Answer: D
Explanation:
Substitute products pose a competitive threat by offering alternative solutions to customers, potentially eroding market share. Effective differentiation and customer retention strategies are essential.
NEW QUESTION # 160
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it.
He doesn't think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?
- A. Force Field Analysis
- B. Value Engineering Analysis
- C. Cost Analysis
- D. Make vs Buy Analysis
Answer: A
Explanation:
Richie should do a Force Field Analysis - this is explained on p.86 and is an idea of Kurt Lewin - it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn't go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin's Force Field Analysis.
NEW QUESTION # 161
A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?
- A. Early engagement with the whole market
- B. Review existing suppliers only
- C. Pre-define all requirements before approaching the market
- D. Cost-based review of the market
Answer: A
Explanation:
Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.
NEW QUESTION # 162
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
- A. The volume purchased is not important
- B. There is potential for backward integration
- C. The switching costs are high
- D. There are few substitute products
- E. The product is highly differentiated
- F. The product is undifferentiated
Answer: C,D,E
Explanation:
Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.
NEW QUESTION # 163
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
- A. no- supplier development should only be done with tactical suppliers
- B. no- supplier development should only be done with strategic suppliers
- C. yes- it is important to develop all relationships
- D. yes- this will improve efficiencies for the buyer
Answer: B
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
NEW QUESTION # 164
Which of the following are examples of internal stakeholders of a manufacturing repair organisation? Select TWO that apply.
- A. Trade union managers
- B. Finance director
- C. Bank manager
- D. Shareholders
- E. Maintenance engineers
Answer: B,E
Explanation:
Internal stakeholders are individuals or groups within an organization who are directly involved in its operations and decision-making processes. The finance director plays a crucial role in budgeting and financial planning, while maintenance engineers are essential for ensuring equipment functionality and efficiency. Both are integral to the organization's internal operations, as outlined in the CIPS L4M6 study materials.
NEW QUESTION # 165
A category buyer, managing an outsourcing project, is aware of the commercially sensitive nature of the project and wishes to adopt an accommodating approach to managing conflict amongst key stakeholders. Is this the correct approach?
- A. Yes, as the category manager has a low concern for themselves but high concern for others
- B. No, as the category manager has a high concern for themselves and low concern for others
- C. Yes, as the category manager has a high concern for others and a high concern for themselves
- D. No, as the category manager has a low concern for others and a low concern for themselves
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
The accommodating conflict management style is characterized by a low concern for self and a high concern for others. This approach involves yielding to others' needs and maintaining harmony, which can be appropriate in situations where preserving relationships is more important than achieving personal goals.
In the context of a commercially sensitive outsourcing project, adopting an accommodating approach may be suitable to ensure stakeholder cooperation and minimize conflict.
Reference:
"The accommodating conflict management style indicates a low concern for self and a high concern for other, and is often viewed as passive or submissive, in that someone complies with or obliges another."- Social Sci LibreTexts: Conflict Management Styles
NEW QUESTION # 166
At what stage of the relationship cycle could you use Carter's 10 Cs?
- A. development and innovation
- B. segmentation and risk management
- C. qualification
- D. on-boarding
Answer: C
Explanation:
Carter's 10 Cs are a way to qualify (aka shortlist) a supplier. See p.11 for more details on this and p.10 for the stages of the relationship cycle.
NEW QUESTION # 167
Which of the following are elements of a business that can develop a company's competitive advantage?
Select THREE.
- A. natural resources
- B. human resource management
- C. cost focus
- D. cost leadership
- E. organisation culture
Answer: A,B,E
Explanation:
This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34
NEW QUESTION # 168
Can a cost leadership strategy be described as 'no frills'?
- A. No, as it increases the costs and narrows the market segment
- B. Yes, it lowers the cost and increases the competitive scope
- C. Yes, it lowers the cost and differentiates the product
- D. No, as it increases the costs and differentiates the product
Answer: B
Explanation:
Cost leadership (Porter's generic strategy) is often referred to as a "no-frills" approach, where the organisation focuses on reducing costs and offering competitive prices across a broad scope. The aim is to become the lowest-cost producer while maintaining acceptable quality.
NEW QUESTION # 169
A hospital located in a remote area experiences difficulties in attracting staff and regularly uses a staffing agency. Human resourcing is critical due to patient safety risks. The agency has been categorised as a strategic supplier. Which sourcing relationship should be adopted?
- A. Transactional sourcing
- B. Tactical sourcing
- C. Competitive sourcing
- D. Partnership sourcing
Answer: D
Explanation:
Strategic suppliers are those that are critical to business continuity and risk management. CIPS states that such suppliers require:
* Long-term commitment
* High levels of trust
* Joint planning and collaboration
Given the impact on patient safety and service continuity, a partnership sourcing relationship is appropriate, enabling shared responsibility, performance management, and continuous improvement.
Transactional or competitive sourcing would not provide the stability required.
L4M6 Reference:
* Learning Outcome 3: Understand supplier relationship strategies
* Topic: Strategic suppliers and partnerships
* CIPS L4M6 Study Guide - Supplier segmentation and SRM
NEW QUESTION # 170
A university based in Europe has an objective to increase the number of students coming from the United States of America (USA). The university appoints a consultant with specialist knowledge of the USA market and has issued them with a performance-based specification. Which of the following is a characteristic of a performance specification?
- A. It ensures the supplier must conform with the specification
- B. It enables the buyer to detail technical information
- C. It provides details of how the services must be carried out
- D. It encourages innovation from the supplier
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
A performance specification outlines the desired outcomes or results without prescribing the exact methods to achieve them. This approach allows suppliers the flexibility to use their expertise and creativity to meet the buyer's requirements, thereby encouraging innovation.
Reference:
CIPS Procurement Specifications Guide
NEW QUESTION # 171
'tail spend' is a common category used in procurement and describes a category of items. What characteristics do theses items have?
- A. Low value, low volume
- B. Low value, high volume
- C. High value, high volume
- D. High value, low volume
Answer: B
Explanation:
Tail spend items are low value, high volume. P. 132
NEW QUESTION # 172
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?
- A. The supplier will not perform as well as an internal team
- B. This allows staff to focus on other areas
- C. This will be more expensive than providing the service in house
- D. There is dependency on the supplier, which increases risk
Answer: D
Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'
NEW QUESTION # 173
Price fluctuations can affect profitability. Is this statement correct?
- A. Yes, if the product's costs increase and the price does not
- B. No, only decisions made by the chief executive affect the price
- C. Yes, as sales may drop if the product is price inelastic
- D. No, price is not related to profitability
Answer: A
Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.
NEW QUESTION # 174
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.
- A. Levels of supply availability in the market have decreased
- B. The supplier has decided that it no longer wishes to keep the buying organisation as a customer
- C. Changes in the composition of the supply market
- D. The buyer no longer believes in the value of partnership relationships
- E. Poor communication by the supplier
Answer: C,E
Explanation:
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 # 175
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
- A. Emphasis on short-term relationship
- B. Emphasis on long-term relationship
- C. Emphasis on inspection of incoming supplies
- D. Emphasis on the lowest price
- E. Emphasis on quality with zero defects
Answer: B,E
Explanation:
Partnerships emphasize mutual goals such as quality improvement and long-term collaboration, contrasting with adversarial relationships that focus on cost and short-term gains.
NEW QUESTION # 176
Phone Maker Incorporated is a manufacturer of mobile phones. It is considering investing in a partnership with its supplier of batteries and circuit boards as it wishes to produce new models of its phone more regularly. What is the main driver for Phone Maker Incorporated?
- A. Cheaper costs
- B. Reduced product life-cycles
- C. Changes in the marketplace
- D. Better quality products
Answer: B
Explanation:
The correct answer is 'reduced product life-cycles'. In this example the reason for entering a partnership is to be able to produce new models of phones more quickly- this is likely because consumers are wanting to change mobile phones more often than they did in the past, so in order to keep up with demand, Phone Maker Incorporated need to produce more phones, more quickly. Drivers of Partnership Sourcing is a key topic in the exam - you can revise these by looking at p.127 in the Study Guide
NEW QUESTION # 177
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?
- A. Develop an exit strategy
- B. Give written notice to the supplier of plans to terminate
- C. Obtain business approval to terminate the contract
- D. Review the market and look for an alternative supplier
Answer: C
Explanation:
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 # 178
An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?
- A. 1 and 2
- B. 1 and 3
- C. 1 and 4
- D. 3 and 4
Answer: A
Explanation:
An amicable approach is critical when alternative suppliers are limited or when ongoing collaboration is required during the termination period. Maintaining positive relations ensures smooth operations and protects reputations in the marketplace.
NEW QUESTION # 179
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The marketplace has become more volatile
- B. The need to improve performance to satisfy the end customerTo increase production costs and lead- times
- C. Working together will create synergies
- D. The protection of intellectual property rights
Answer: A,B,C
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers ofPartnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.
NEW QUESTION # 180
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
- A. Your internal stakeholder requested the wrong items
- B. There has been a serious breach of contract terms
- C. You ordered 10,000 items instead of 1,000
- D. Your MRP system placed a replenishment order that you do not need
- E. One of the contracted parties has clearly failed to perform its duties
Answer: B,E
Explanation:
Legitimate reasons for contract termination under CIPS guidelines include failure to perform duties and serious breaches of contract terms. Ordering errors or changes in stakeholder needs are not valid termination grounds unless explicitly stated in the contract. This protects both parties from unjustified termination risks.
NEW QUESTION # 181
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