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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	Appraise portfolio analysis techniques to assess relationships in supply chains Analyse the concept of partnering and where it is a suitable approach
Topic 3	Positive relationships through positive contributions Differentiate between different types of commercial relationships in supply chains
Topic 4	Matrices to identify supply, supplier and purchaser positioning Supplier identification, assessment and selection
Topic 5	The link between relationships as a process and the achievement of added value outcomes Understand the dynamics of relationships in supply chains
Topic 6	Compare the practical considerations of stakeholder management Compare the sources of added value that can be achieved through supply chain relationships

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CIPS Supplier Relationships Sample Questions (Q73-Q78):

NEW QUESTION # 73
A supermarket is struggling with sales and has done an analysis on its competitors. It has discovered that it has two major competitors; one provides groceries at a much cheaper price and another that provides only organic products. The supermarket has decided that it wants to continue providing groceries to a wide target audience but that it will compete by offering superior customer service. What is the supermarket's source of competitive advantage?

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

Answer: A Explanation:
This is differentiation as the target market is broad. Differentiation focus would be if the supermarket was targeting a niche market. 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 # 74
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. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
• C. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
• D. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this

Answer: D 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 # 75
The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?

• A. supplier positioning
• B. cost analysis
• C. relationship spectrum
• D. cost engineering

Answer: A Explanation:
ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this
NEW QUESTION # 76
What is value mapping?

• A. Analysing the costs that go into making a product
• B. Creating value through the elimination of waste and operational inefficiencies
• C. Segmenting suppliers based on the value they bring to the company
• D. Make vs Buy decision

Answer: B Explanation:
The definition of value mapping is given on p.69 this is; 'a process in which value is created through the elimination of waste and operational inefficiencies'. It ties into JIT / Lean.
NEW QUESTION # 77
Under what circumstances should a competitive tender not be completed? Select TWO.

• A. When there is a clear specifications
• B. When there is not a clear specification
• C. When the items are of high value
• D. When the items are of low value

Answer: B,D Explanation:
Note the word 'NOT' in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it's time consuming to do, so you wouldn't do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn't a clear specification'. There's a useful table on p.73 of when you would and wouldn't use a competitive tender.
NEW QUESTION # 78
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