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CIPS L4M6 Exam Syllabus Topics:

Topic Details
Topic 1
  • Analyse the purpose of organisational procedures and processes in sourcing goods and
  • or services
  • The link between organisations in supply networks

Topic 2
  • Compare the practical considerations of stakeholder management
  • Compare the sources of added value that can be achieved through supply chain relationships

Topic 3
  • Appraise portfolio analysis techniques to assess relationships in supply chains
  • Analyse the concept of partnering and where it is a suitable approach

Topic 4
  • Define the standards that potential partners will be expected to meet
  • Identify the competitive forces that impact on relationships in supply chains

Topic 5
  • Compare team management techniques to ensure positive stakeholder relationships
  • Identify the processes for terminating stakeholder relationships

Topic 6
  • Matrices to identify supply, supplier and purchaser positioning
  • Supplier identification, assessment and selection

Topic 7
  • Lack of senior management support and trust
  • Lack of commitment by one or both parties

Topic 8
  • Positive relationships through positive contributions
  • Differentiate between different types of commercial relationships in supply chains

Topic 9
  • Understand processes and procedures for successful working with stakeholders
  • Identify items potentially suitable for partnership sourcing


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CIPS Supplier Relationships Sample Questions (Q28-Q33):

NEW QUESTION # 28
Agile Cars Ltd is creating a 'lean' business model which involves receiving deliveries of components only when they are required. Which of the following 'wastes' is being removed from the business?

  • A. Over-production
  • B. Transportation
  • C. Defects
  • D. Inventory

Answer: D Explanation:
This would reduce inventory (holding stock). Inventory is considered a business waste because it costs money to store stuff (e.g. paying the rent on a warehouse, electricity to light it up etc). If you can reduce the need to store materials and components on site- you reduce costs. You also save time because you get deliveries when you need them- you don't need to allow for staff unpacking things, storing them away, then going back to them later when they need them. For more information on the 7 Business Wastes see p.70. This comes up in a couple of modules, so it's worth remembering.
NEW QUESTION # 29
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

  • A. differentiation
  • B. differentiation focus
  • C. cost focus
  • D. cost leadership

Answer: C Explanation:
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13
NEW QUESTION # 30
The Kraljic Model is most useful for which aspect of procurement?

  • A. cost analysis
  • B. cost reduction
  • C. risk management
  • D. category management

Answer: D Explanation:
The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.
NEW QUESTION # 31
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?

  • A. Do frequent appraisals on the supplier
  • B. Conduct regular audits
  • C. Threaten the supplier with termination if he underperforms
  • D. Ensure there is a damages clause in the contract

Answer: B Explanation:
The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.
NEW QUESTION # 32
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. Changes in the marketplace
  • B. Reduced product life-cycles
  • C. Cheaper costs
  • 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 # 33
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