CIPS Supplier Relationships L4M6 Exam Questions

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Total 243 questions
Question 1

Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.



Answer : A, C, E

Drivers for partnership include a high spend with the supplier, criticality of the product, and technical complexity. These factors encourage collaboration for cost efficiency, quality improvement, and risk management. Partnerships are less likely when there are many suppliers or the product is a commodity, as competition and standardization reduce the need for close collaboration.


Question 2

Partnership sourcing is often considered a 'high-risk' strategy for a buyer. Which of the following is not a risk generally associated with partnership sourcing?



Answer : C

The correct answer is 'Reduced waste in the supply chain' -- this is not a risk, this is a benefit P.134


Question 3

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?



Answer : A

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


Question 4

Hungry Sandwich Co. produces over 5,000 freshly made sandwiches on-site every day. The main ingredient that Hungry Sandwich Co. buys is bread. It is the item they spend the most money on, and they have a long-term partnership agreement with a local bakery to manufacture and supply fresh bread every morning. Using a supplier positioning matrix, which is the appropriate category for bread for Hungry Sandwich Co.?



Answer : D

Bread is a strategic item due to its high spend and critical role in daily operations. A partnership approach ensures consistent quality and reliability, aligning with strategic supplier management principles.


Question 5

Rivalry between suppliers is more likely to be intense in which of the following situations?



Answer : B

Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter's Five Forces model.


Question 6

A procurement category manager has been asked to advise the project team on the appropriate selection and awarding process for a complex procurement project in a multi-geographical organisation. It is likely the specification will be updated during the process, and several phases of negotiation will be required throughout. This will include final negotiations with the winning bidder. The team are therefore aware it will be a time-consuming project. Which process should be advised?



Answer : C

Competitive dialogue is the most appropriate method for complex, high-value procurements where requirements cannot be fully defined at the outset. This process allows dialogue with shortlisted bidders to refine specifications and negotiate solutions before awarding. CIPS states that this procedure is particularly suited for projects requiring flexibility, multiple negotiation phases, and innovative input from suppliers.


Question 7

A medical consumables buyer has adopted a close relationship approach with their suppliers that are considered to be complicated, technical suppliers. Is this the right approach?



Answer : A

Complex and technical suppliers often involve high financial risks due to the critical nature of their products. A close relationship ensures better collaboration, risk management, and value generation.


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Total 243 questions