Updated L4M6 Exam Dumps (V9.02) – Right Resources for CIPS Level 4 Supplier Relationships L4M6 Exam Preparation

1. Which of the following is a stage in the relationship lifecycle?

2. Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.

3. Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.

4. Products or services that are more suitable for partnership sourcing match which of the following criteria?

5. A partnership relationship in portfolio analysis is appropriate for which category of procurement?

6. Stephen Jones is assessing the relationships he has with his supplier base.

Which of the following would be drivers for Stephen to adopt a partnership relationship with a supplier?

7. Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have made investments in the supplier’s factory to support them with capital equipment upgrades in return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets when looking to supply doughnuts and work together on quality improvements. No contracts exist between the two companies.

Could this relationship be said to be a partnership relationship?

8. A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result.

Which of the following STEEPLED factors is most likely to have the greatest effect?

9. Which of the following are typical examples of partnering between companies? Select the TWO that apply.

10. A local council requires facilities management services for ten schools based in their region. This service is a high-spend, high-risk, critical contract.

Which sourcing approach would be the most appropriate?

11. An amicable style approach to ending a buyer-supplier relationship would be most appropriate in

which of the following circumstances?

12. When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?

13. In the STEEPLED framework, which of the following is an economic factor?

14. Which one of the following would constitute a succession issue when terminating a relationship?

15. Price fluctuations can affect profitability. Is this statement correct?

16. Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph’s company spends an additional 25% on moving and installing the cable.

In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?

17. A buyer has a requirement to purchase 1,000 widgets for a manufacturing company. The widgets are critical for the next stage of the manufacturing process.

What would be the key selection criterion for this buyer?

18. Under which circumstances would a partnership sourcing approach be used?

19. Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.

20. 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?

21. A local government procurement team is undertaking a full review of their current internal working processes. The team of buyers currently have a partnership-style relationship with their routine suppliers.

Is this the best relationship style to use?

22. 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?

23. When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?

24. A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board of directors. The recommendation is based on a range of advantages including, but not limited to, gaining local market knowledge.

Is this a valid recommendation?

25. An automotive company has hired Tom as the procurement manager. Tom is to manage a team of two people who have worked in the department for a number of years. Conflict exists between the two members of staff due to an overlap of responsibilities.

Which of the following processes would be most appropriate for Tom to use to reduce this conflict?

26. A common reason attributed to many partnerships failing is ...

27. Which of the following are advantages for the buyer of early supplier involvement with the buyer's product development team?

28. 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?

29. A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers.

What would be the most beneficial way for them to initially narrow down the supply options?

30. Which one of the following is an advantage of early supplier involvement?

31. A law firm is ending an agreement with a client they have represented for many years.

What is the most important legal consideration to be taken before terminating?

32. When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

33. Which of the following are advantages of partnering?

34. Which of the following are the stages of team development?

35. 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?

36. In the 1990s, a manufacturer of portable music players partnered with a mini-disk producer. The aim of the partnership was to reduce the size and cost of the devices and enhance flexibility. Sales of the product after launch were low due to a competitive launch of small digital players, which offered better flexibility to customers at a comparable price. The partners suffered substantial loss and never recovered the investment.

In order to mitigate the risk described, what should both partners have considered before investing in the product? Select the TWO that apply.

37. A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit.

Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?

38. Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects. They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directions and explore new markets for long-term growth. There is no formal contract in place between the two companies.

Using the relationship spectrum, what relationship does this scenario best describe?

39. How would a buyer measure value for money from a relationship with a new supplier for goods?

40. The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modeling activity. This will be undertaken with a cross-organizational team of internal stakeholders and key strategic suppliers.

What would be the buyer's initial objective from the cost modeling activity?

41. Which of the following are examples of ways in which businesses can add value? Select THREE that apply.

42. The director of procurement for a global telecommunications firm has segmented their expenditure and has decided to focus on developing relationships with their bottleneck suppliers.

Is this the correct process?

43. A large office orders weekly from a stationery supplier. The items are low-cost, and if the delivery is a day late, it does not affect the running of the office.

Where would this supplier be positioned in a supplier matrix?

44. In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardized. Is this TRUE or FALSE?

45. A partnership approach to a buyer-supplier relationship, as opposed to a traditional adversarial approach, would have which of the following characteristics?

46. Hungry Sandwich Co. produces over 5,000 freshly made sandwiches on-site every day. The main ingredient that Hungry Sandwich Co. buys is bread. It is the item they spend the most money on, and they have a long-term partnership agreement with a local bakery to manufacture and supply fresh bread every morning. Using a supplier positioning matrix, which is the appropriate category for bread for Hungry Sandwich Co.?

47. Kyle Grant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000.

What is the primary aim of this policy?

48. Rivalry between suppliers is more likely to be intense in which of the following situations?

49. A partnership between a software development company and a software supplier has recently been created.

In order for the partnership to be successful, what is a critical action to take in the early stages of their relationship?

50. A comprehensive approach to managing the termination of a contractual relationship would include ...

51. A company is about to invite tenders for a contract to clean external windows at several premises, all at least three storeys high. It is going to do this in two stages. For the first stage, it will issue a pre-qualification questionnaire (PQQ) and, from the replies, select at least five potential suppliers to invite to tender.

Which of the following is a selection criterion rather than an award criterion?

52. Which of the following would be benefits of partnership sourcing? Select TWO that apply.

53. National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?

54. Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.

55. A medical consumables buyer has adopted a close relationship approach with their suppliers that are considered to be complicated, technical suppliers. Is this the right approach?

56. A large construction group has a critical contract with a brick supplier. This represents high-value spend, and the contract has a five-year duration.

What type of commercial relationship would be the most appropriate?

57. Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent price increase.

What is this tactic known as?

58. What are the relationship characteristics of a Partnership?

59. 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?

60. Which circumstances make a buyer more attractive to the supplier?

61. According to Michael Porter, what is procurement?

62. Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.

63. In a monopoly market, which of the following statements is true?

64. In an oliogopy market, what would a regulator do?

65. Which of the following would not affect rivalry in a marketplace? Select TWO.

66. Which of the following factors would you use to analyse the macro-environment? Select THREE.

67. Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.

68. 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?

69. A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded. Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose.

Can the Manager do this?

70. Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money.

What should Fred do?