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CIPS L4M6 Exam Syllabus Topics:TopicDetailsTopic 1Understand processes and procedures for successful working with stakeholders Identify items potentially suitable for partnership sourcingTopic 2Lack of senior management support and trust Lack of commitment by one or both partiesTopic 3Matrices to identify supply, supplier and purchaser positioning Supplier identification, assessment and selectionTopic 4Analyse the purpose of organisational procedures and processes in sourcing goods andor services The link between organisations in supply networksTopic 5Compare team management techniques to ensure positive stakeholder relationships Identify the processes for terminating stakeholder relationships
CIPS Supplier Relationships Sample Questions (Q31-Q36):

NEW QUESTION # 31
A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products. What is the reason for the failure of this?

A. Distortion of the factsB. MiscommunicationC. Poor communicationD. Communication overload

Answer: C

Explanation:
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.


NEW QUESTION # 32
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

A. The buyer wishes to create a new product and requires input from a supplierB. It will allow for consolidation in the supply chainC. You discover that the supplier has a high profit marginD. Sudden changes in the marketplace

Answer: D

Explanation:
The correct answer is 'Sudden changes in the marketplace' - this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163


NEW QUESTION # 33
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. This allows staff to focus on other areasB. There is dependency on the supplier, which increases riskC. The supplier will not perform as well as an internal teamD. This will be more expensive than providing the service in house

Answer: B

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 # 34
'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 volumeB. Low value, high volumeC. High value, high volumeD. High value, low volume

Answer: B

Explanation:
Tail spend items are low value, high volume. P. 132


NEW QUESTION # 35
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?

A. routineB. leverageC. BottleneckD. strategic

Answer: A

Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)


NEW QUESTION # 36
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