Latest CIPS L4M6 Free Certification Exam Material with 226 Q&As
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CIPS L4M6 exam is a computer-based exam that consists of 60 multiple-choice questions. Candidates have two hours to complete the exam, and the pass mark is 60%. L4M6 exam is assessed on a scaled score system, which means that the final score is adjusted based on the difficulty level of the questions. L4M6 exam is available at CIPS exam centers worldwide, and candidates can book their exam online through the CIPS website.
Candidates who successfully complete the CIPS L4M6 exam will be able to demonstrate their ability to manage suppliers effectively. They will have a better understanding of the importance of supplier management in achieving business success, and will be able to apply this knowledge to real-life situations. They will also be able to identify areas of improvement in supplier management practices, and implement effective strategies to address these areas.
NEW QUESTION # 82
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?
- A. transactional
- B. arms length
- C. strategic alliance
- D. outsource
Answer: C
Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier.
There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details
NEW QUESTION # 83
Which of the following are the stages of team development?
- A. Forming, storming, norming, performing
- B. Introducing, forming, managing, performing
- C. Starting, forming, benchmarking, performing
- D. Beginning, working, reviewing, performing
Answer: A
Explanation:
The stages of team development as defined by Tuckman include forming, storming, norming, and performing.
These stages reflect how teams evolve and mature through collaboration and problem-solving.
NEW QUESTION # 84
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?
- A. To ensure value for money is achieved
- B. To enable a reduction in competition
- C. To deliver an agile process
- D. To allow procurement to select the lowest price
Answer: A
Explanation:
Obtaining multiple quotations ensures value for money by comparing suppliers based on cost, quality, and other criteria. It promotes competitive pricing and informed decision-making.
NEW QUESTION # 85
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
- A. TUPE
- B. PCR 2015
- C. ITT
- D. OJEU
Answer: A
Explanation:
The correct answer is TUPE: Transfer of Undertakings (Protection of Employment). Details on TUPE can be found on p.115
NEW QUESTION # 86
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?
- A. Bottleneck
- B. Routine
- C. Critical
- D. Leverage
Answer: B
Explanation:
Routine items are low risk and low value. They are non-critical and often easily sourced. CIPS categorizes such items in the 'Routine' quadrant of the Kraljic Matrix, where minimal procurement effort is justified and supply assurance is easily managed.
NEW QUESTION # 87
Canadian Office Furniture Manufacturing Ltd (COFM) was trying to enter the Australian market, but without any success. The main issue is that the Australian government supports local manufacturers. COFM has successfully bid to acquire an Australian office furniture manufacturer. Which of the following benefits will COFM achieve by the acquisition?
* Accessing the restricted local market
* Removing the government support for local manufacturers
* Decreasing the competition between local manufacturers
* Improving its knowledge of the local market
- A. 1 and 2 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
By acquiring an Australian office furniture manufacturer, COFM can:
* Access the Restricted Local Market:Acquisition allows COFM to operate as a local entity, thereby overcoming barriers to entry and benefiting from any local government support available to domestic manufacturers.
* Improve Knowledge of the Local Market:The acquired company brings with it an understanding of local customer preferences, regulatory requirements, and market dynamics, which is invaluable for successful operations.
However, the acquisition does not remove government support for other local manufacturers, nor does it necessarily decrease competition.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 88
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?
- A. Availability
- B. Whole life costs
- C. Equity
- D. Price only
Answer: B
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 # 89
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
- A. There is potential for backward integration
- B. The product is undifferentiated
- C. There are few substitute products
- D. The volume purchased is not important
- E. The switching costs are high
- F. The product is highly differentiated
Answer: C,E,F
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 # 90
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
- A. The supplier suddenly increases prices
- B. The supplier made one late delivery
- C. The supplier becomes insolvent
- D. The supplier has a change in senior management
- E. Supply base rationalisation
Answer: B,D
Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
NEW QUESTION # 91
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The protection of intellectual property rights
- B. The need to improve performance to satisfy the end customer
To increase production costs and lead-times - C. Working together will create synergies
- D. The marketplace has become more volatile
Answer: B,C,D
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 of Partnership 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 # 92
Which of the following are advantages for the buyer of entering into a partnership? Select TWO.
- A. They are likely to be able to gain price stability
- B. There may be greater continuity of supply
- C. The supplier may become complacent
- D. They will gain an increased volume of business
Answer: A,B
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 # 93
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. Sudden changes in the marketplace
- B. The buyer wishes to create a new product and requires input from a supplier
- C. It will allow for consolidation in the supply chain
- D. You discover that the supplier has a high profit margin
Answer: A
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 # 94
What is a disadvantage of including qualitative KPIs into a contract?
- A. They can lead to poor supplier performance
- B. They make the buyer seem weak
- C. They are hard to measure
- D. They pull focus from the more important quantitative KPIs
Answer: C
Explanation:
The correct answer is 'They are hard to measure' p.103
NEW QUESTION # 95
What is a key driver for developing a partnership relationship?
- A. Fast-changing technology
- B. Well-understood services
- C. Unrestricted market
- D. Low-risk supplies
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Fast-changing technology necessitates close collaboration between buyers and suppliers to stay ahead of market trends and innovations. Partnerships enable shared development efforts, quicker adaptation, and mutual growth in dynamic technological environments.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 96
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
* Negative leaders
* Silent opponents
* Supporters
* Promoters
- A. 1 and 2 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: D
Explanation:
In stakeholder management,Negative leadersandPromoterspossess high influence over others:
* Negative leaders: Individuals who oppose the project and can sway others against it due to their influence.
* Promoters: Advocates who support the project and can positively influence others.
Understanding these dynamics is crucial for effectively managing stakeholder resistance.
As highlighted in the CIPS study materials:
"Overcoming resistance- Promoters - They have a high influence on other stakeholders and support the project. They support and empower."
NEW QUESTION # 97
Which of the following are examples of a collaborative partnering relationship? Select TWO that apply.
- A. Co-destiny
- B. Adversarial
- C. Strategic alliance
- D. Arm's length
- E. Transactional
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation:
Collaborative partnering relationships are characterized by high levels of trust, mutual objectives, shared information, and long-term commitment. Among the options provided:
* Co-destiny: This represents the highest level of collaboration, where both parties' futures are closely linked, and decisions are made jointly for mutual benefit.
* Strategic alliance: This involves a formal agreement between organizations to pursue shared objectives while remaining independent entities.
These relationship types are positioned on the collaborative end of the relationship spectrum, emphasizing joint efforts and shared success.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 98
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 facts
- B. Poor communication
- C. Miscommunication
- D. Communication overload
Answer: B
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 # 99
What is the correct order for the 5 stages of team development?
- A. Storming, norming, adjourning, performing, forming
- B. Forming, storming, norming, performing, adjourning
- C. Norming, adjourning, storming, performing, forming
- D. Forming, storming, performing, adjourning, norming
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Bruce Tuckman's model of team development outlines five stages:
* Forming- Team members get acquainted and establish ground rules.
* Storming- Members begin to communicate their feelings but still view themselves as individuals rather than part of the team.
* Norming- People feel part of the team and realize that they can achieve work if they accept other viewpoints.
* Performing- The team works in an open and trusting atmosphere where flexibility is the key and hierarchy is of little importance.
* Adjourning- The team conducts an assessment of the year and implements a plan for transitioning roles and recognizing members' contributions.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 100
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. Cost Analysis
- B. Force Field Analysis
- C. Value Engineering Analysis
- D. Make vs Buy Analysis
Answer: B
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 # 101
Which of the following are valid strategies for dealing with conflict? Select THREE
- A. Contesting
- B. Compromising
- C. Competing
- D. Collaborating
- E. Collecting
Answer: B,C,D
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
NEW QUESTION # 102
Which of the following would not affect rivalry in a marketplace? Select TWO.
- A. legislative changes
- B. exit barriers
- C. industry growth or decline
- D. switching costs
- E. supply chain disruption
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 # 103
Beyond Say is a manufacturer of diamond rings. It sources a lot of different parts to create its products including diamonds, gold, cardboard boxes for the rings to go in, as well as stationary and copier paper for the offices. Although it doesn't buy many diamonds, these represent a large part of Beyond Say's spend. Which category of spend would diamonds represent?
- A. Operational Spend
- B. Critical/Strategic Spend
- C. Tactical Spend
- D. It isn't possible to tell
Answer: B
Explanation:
This is category 'A' spend in the ABC model - they represent a large value and a small number of purchases / suppliers. See p.17 for more information on the ABC Analysis
NEW QUESTION # 104
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To take the CIPS L4M6 Certification Exam, candidates must have completed the CIPS Level 4 Diploma in Procurement and Supply or have an equivalent qualification. L4M6 exam is computer-based and consists of 60 multiple-choice questions which must be completed in two hours. The questions are designed to test the candidate's understanding of the key concepts and principles of supplier relationship management.
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