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CIPS L4M6 Exam Syllabus Topics:

Topic Details
Topic 1
  • Define the standards that potential partners will be expected to meet
  • Identify the competitive forces that impact on relationships in supply chains

Topic 2
  • Positive relationships through positive contributions
  • Differentiate between different types of commercial relationships in supply chains

Topic 3
  • Compare team management techniques to ensure positive stakeholder relationships
  • Identify the processes for terminating stakeholder relationships

Topic 4
  • Matrices to identify supply, supplier and purchaser positioning
  • Supplier identification, assessment and selection

Topic 5
  • Understand processes and procedures for successful working with stakeholders
  • Identify items potentially suitable for partnership sourcing

Topic 6
  • Analyse the purpose of organisational procedures and processes in sourcing goods and
  • or services
  • The link between organisations in supply networks

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

Topic 8
  • The link between relationships as a process and the achievement of added value outcomes
  • Understand the dynamics of relationships in supply chains


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CIPS Supplier Relationships Sample Questions (Q85-Q90):

NEW QUESTION # 85
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. end-users
  • B. customers
  • C. legal department
  • D. suppliers
  • E. employees

Answer: A,C,E 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 # 86
David is sourcing a new cleaning contract as he is not impressed with his current cleaning company's performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method. Is this the correct way forward?

  • A. Yes- an e-auction will allow David to secure the lowest possible price
  • B. Yes- an e-auction is an electronic system so it will be easy for David to compare bids
  • C. No- a reverse e-auction will ensure only high quality suppliers bid for the opportunity
  • D. No- a reverse e-auction would be more suitable as it will secure the lowest price

Answer: D Explanation:
The correct answer is 'No- a reverse e-auction would be more suitable as it will secure the lowest price'. An E-auction is something like eBay- where bids go up in price. If David wants to secure a lower price, he should use a Reverse E-Auction- where suppliers bid lower than the previous bid in order to win. For example, Supplier 1 offers to fulfil the contract at £50k per year, Supplier 2 can offer to beat this price by bidding £48k per year. Although Reverse E-Auctions may ensure cheaper prices, there are a lot of disadvantages to using this method. See p.21 and p.76 for more information
NEW QUESTION # 87
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 # 88
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?

  • A. Competing- the supplier needs to earn more money as they are struggling financially
  • B. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
  • C. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them
  • D. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival

Answer: D Explanation:
The correct answer is 'accommodating'. This Question: is based
on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.
NEW QUESTION # 89
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

  • A. Yes- partnerships do not have end dates because there is never a contract involved
  • B. No- partnerships have end dates as they are contractual relationships
  • C. No- partnerships should have end dates so both parties have a way out if things don't work out
  • D. Yes-partnerships do not have end dates because they involve significant investment

Answer: D Explanation:
The correct answer is 'Yes-partnerships do not have end dates because they involve significant investment'. This is explained on p.126. Partnerships can involve contracts - so the other 'yes' answer is incorrect.
NEW QUESTION # 90
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