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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	Positive relationships through positive contributions Differentiate between different types of commercial relationships in supply chains
Topic 3	Lack of senior management support and trust Lack of commitment by one or both parties
Topic 4	Compare the practical considerations of stakeholder management Compare the sources of added value that can be achieved through supply chain relationships
Topic 5	Define the standards that potential partners will be expected to meet Identify the competitive forces that impact on relationships in supply chains
Topic 6	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 (Q78-Q83):

NEW QUESTION # 78
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.

• A. employees
• B. legal department
• C. customers
• D. end-users
• E. suppliers

Answer: A,B,D Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64
NEW QUESTION # 79
In a partnership who is responsible for decision making?

• A. The supplier
• B. Both the supplier and the buyer
• C. The project steering committee
• D. The buyer

Answer: B Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152
NEW QUESTION # 80
Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn't need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?

• A. No- Debbie should continue using the same supplier- it doesn't matter that the contract has expired.
• B. No- the contract is not of significant value
• C. Yes - the contract has now expired so she must do a new competitive tender
• D. Yes- competitive tender is the only option to procure uniforms

Answer: B Explanation:
The correct answer is 'no-the contract is not of significant value'. CIPS state that competitive tenders should only be used when 'the item or service is of significant value' p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.
NEW QUESTION # 81
The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?

• A. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
• B. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
• C. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this
• D. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market

Answer: C Explanation:
The correct answer is 'Yes- the Public Sector is regulated by EU procurement regulations which prohibits this'. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
NEW QUESTION # 82
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn't hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?

• A. Minimal effort is required as they do not hold a lot of power in the business.
• B. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
• C. Keep them satisfied- they will be wearing the uniform so need to be happy with it
• D. Manage them closely- they're key players in this procurement activity

Answer: B Explanation:
The housekeeping team have low power and high interest. According to Mendelow's stakeholder matrix, this puts them in the bottom right corner which is 'keep informed'. See p.81 for more information
NEW QUESTION # 83
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