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The CIPS L4M6 exam covers a range of topics related to supplier relationship management, including the principles of effective supplier management, the importance of communication and negotiation skills, developing and maintaining strategic supplier relationships, and managing supplier performance. Successful completion of this exam demonstrates a candidate's ability to manage supplier relationships effectively, which is a critical component of any successful procurement and supply chain operation. Furthermore, candidates who pass the exam will gain a thorough understanding of the best practices in supplier relationship management, enabling them to improve their organization's procurement and supply chain operations.
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CIPS Supplier Relationships Sample Questions (Q45-Q50):NEW QUESTION # 45
What is collaborative inertia?
Answer: B
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 # 46
Which of the following would not affect rivalry in a marketplace? Select TWO.
Answer: A,E
Explanation:
Legislative changes wouldn't affect rivalry in a market as all suppliers would be equally as affected, the same with supply chain disruptions. Factors which do affect rivalry include; industry growth and decline, product differences, brand identity, switching costs, diversity of competitors and exit barriers. These are listed on p.41
NEW QUESTION # 47
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.
Answer: B,C,D
Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5
NEW QUESTION # 48
Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive 'value for money'. Which of the following should Jenny consider when drafting her ITT?
Answer: D
Explanation:
Jenny should consider whole life costing. Ensuring value for money means considering a combination of price and quality throughout the lifetime of the product. See p.65 for more on 'Achieving Value for Money'
NEW QUESTION # 49
Which of the following are advantages for the buyer of entering into a partnership? Select TWO.
Answer: C,D
Explanation:
The correct answers are; They are likely to be able to gain price stability and There may be greater continuity of supply. The other options are an advantage for the supplier rather than the buyer (They will gain an increased volume of business) and a disadvantage of entering into a partnership (The supplier may become complacent). As you may have guessed from these questions - Partnerships come up a LOT in the exam. See p.130 for info on pros and cons of partnerships.
NEW QUESTION # 50
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