Ace L4M6 Certification with 245 Actual Questions
PASS CIPS L4M6 EXAM WITH UPDATED DUMPS
CIPS L4M6 Certification Exam is suitable for procurement professionals who want to enhance their knowledge and skills in managing supplier relationships. It is ideal for those who are responsible for sourcing and managing suppliers or managing supplier contracts. L4M6 exam is also useful for individuals who want to demonstrate their expertise in supplier relationship management and advance their careers in procurement and supply chain management. CIPS Supplier Relationships certification is recognized globally and demonstrates a professional's commitment to continuous learning and professional development in the field of procurement.
CIPS L4M6 exam is a comprehensive exam that covers a range of topics related to supplier relationships. These topics include supplier segmentation, supplier performance management, and supplier development. L4M6 exam also covers topics related to contract management, which is critical for building successful supplier relationships.
CIPS L4M6 certification exam is an advanced level certification exam that focuses on the key concepts and principles of supplier relationships. L4M6 exam is designed for procurement professionals who want to enhance their skills and knowledge in managing supplier relationships effectively. L4M6 exam covers a wide range of topics related to supplier management, including contract management, supplier performance management, and supplier risk management.
NEW QUESTION # 77
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Operations
- B. Procurement
- C. Inbound Logistics
- D. Marketing and Sales
- E. Human Resources
Answer: A,C,D
Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service
NEW QUESTION # 78
Products or services that are more suitable for partnership sourcing match which of the following criteria?
- A. 2 and 4 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 3 only
Answer: C
Explanation:
Partnership sourcing is suitable for products that contribute to the buying organization's unique selling point (USP) and for critical products on which key customers depend. This approach ensures strategic alignment and mutual benefits for both parties, focusing on collaboration rather than cost alone.
NEW QUESTION # 79
A partnership relationship in portfolio analysis is appropriate for which category of procurement?
- A. Tactical acquisition
- B. Strategic security
- C. Strategic critical
- D. Tactical profit
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
In the context of portfolio analysis, particularly using the Kraljic Matrix, procurement items are categorized based on their profit impact and supply risk.Strategic criticalitems are those with high profit impact and high supply risk. These items are vital to the organization's operations and often have limited suppliers, making them critical to secure.
For such items, developing apartnership relationshipis appropriate. This involves close collaboration, mutual trust, and long-term commitment between the buyer and supplier to ensure reliability, innovation, and continuous improvement.
Reference:
"Strategic items are high value and high risk... The buyer should seek to develop a partnership relationship with the supplier."- CIPS L4M6 Study Guide
NEW QUESTION # 80
A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?
- A. Direct negotiation
- B. Request for quotation
- C. Competitive tendering
- D. Statement of source requirements
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
For high-value and high-risk contracts, such as facilities management services for multiple schools, competitive tenderingis the most appropriate sourcing approach. This process involves inviting multiple suppliers to submit bids, ensuring transparency, fairness, and the opportunity to assess various proposals to select the most suitable supplier. It helps in mitigating risks and achieving value for money.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 81
Which of the following are examples of ways in which businesses can add value? Select THREE that apply.
- A. Through delivering excellent service
- B. Investing in customers
- C. Creating a win-win price
- D. Product features and benefits
- E. Offering convenience
- F. Reducing customer service levels
Answer: A,D,E
Explanation:
Adding value involves enhancing customer experience through excellent service, providing differentiated product features, and offering convenience. These align with procurement strategies aimed at driving customer satisfaction and loyalty.
NEW QUESTION # 82
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?
- A. Items of high value
- B. Items of strategic importance
- C. Items that are imported from outside the EU
- D. Items that are produced by lots of suppliers
Answer: A
Explanation:
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'. These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75
NEW QUESTION # 83
What is a disadvantage of including qualitative KPIs into a contract?
- A. They make the buyer seem weak
- B. They are hard to measure
- C. They can lead to poor supplier performance
- D. They pull focus from the more important quantitative KPIs
Answer: B
Explanation:
The correct answer is 'They are hard to measure' p.103
NEW QUESTION # 84
Which of the following are considered value-adding primary activities?
* Inbound logistics
* Firm infrastructure
* Technology development
* Marketing and sales
- A. 2 and 4 only
- B. 3 and 4 only
- C. 1 and 4 only
- D. 1 and 2 only
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
In Michael Porter's Value Chain model, primary activities are those that are directly involved in the creation and delivery of a product or service. These include:
* Inbound Logistics:Activities related to receiving, storing, and distributing inputs internally.
* Operations:Transforming inputs into the final product.
* Outbound Logistics:Distributing the final product to customers.
* Marketing and Sales:Activities that inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.
* Service:Activities that maintain and enhance the product's value, such as customer support and repair services.
Firm infrastructure and technology development are considered support activities, as they assist the primary activities in helping the organization achieve its competitive advantage.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 85
A competitor develops an alternative type of vacuum cleaner to one produced by your organization. Is this an example of the threat of substitutes, one of the five forces of competition described by competitive forces theory?
- A. Yes, customers may switch to alternative products
- B. No, it is a threat from a new entrant to the market
- C. No, it does not serve the same purpose
- D. Yes, there are no barriers to entry; it is an oligopoly
Answer: A
Explanation:
Substitute products pose a competitive threat by offering alternative solutions to customers, potentially eroding market share. Effective differentiation and customer retention strategies are essential.
NEW QUESTION # 86
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Operations
- B. Procurement
- C. Inbound Logistics
- D. Marketing and Sales
- E. Human Resources
Answer: A,C,D
Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it.
Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service
NEW QUESTION # 87
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender.
What purpose would this serve?
- A. To ensure suppliers know the deadline for tender submission
- B. To ensure more suppliers bid for the tender
- C. To ensure only qualified suppliers bid for the tender
- D. To ensure suppliers can find the opportunity
Answer: D
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes arediscussed on p.
72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.
NEW QUESTION # 88
Which of the following are typical examples of partnering between companies? Select the TWO that apply.
- A. Limited company
- B. Sole trader
- C. Public limited company
- D. Joint venture
- E. Strategic alliance
Answer: D,E
Explanation:
Comprehensive and Detailed Explanation:
Joint venturesandstrategic alliancesare common forms of partnerships between companies:
* Joint Venture:A business arrangement where two or more parties agree to pool their resources for a specific task, creating a new entity.
* Strategic Alliance:An agreement between companies to pursue objectives while remaining independent organizations.
"Sole trader," "limited company," and "public limited company" refer to business structures, not partnership arrangements.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 89
Under what circumstances should a competitive tender not be completed? Select TWO.
- A. When the items are of low value
- B. When there is not a clear specification
- C. When the items are of high value
- D. When there is a clear specifications
Answer: A,B
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 # 90
A competitive advantage can be gained by doing what?
- A. Completing formal tenders for all buying requirements
- B. Building better relationships with primary stakeholders
- C. Increasing your prices
- D. Engaging in market research
Answer: B
Explanation:
The correct answer is 'Building better relationships with primary stakeholders'. This is a direct quote from the start of chapter 2.2: 'building better relationships with primary stakeholders such as employees, customers, suppliers and communities could lead to increased shareholder wealth by developing a competitive advantage'. The other three options wouldn't give you a competitive advantage; increasing prices would do the opposite, engaging in market research won't give you a competitive advantage unless you do something with that research such as implement a change to your business, and completing formal tenders for everything would be a waste of time and resources- there's no need to tender for low value, low risk items. See p.80
NEW QUESTION # 91
Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier, for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent pricing increase. What is this tactic known as?
- A. Forward buying
- B. Spot buying
- C. Hedging buying
- D. Derivative buying
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Forward buyinginvolves purchasing goods in advance of actual need, often in larger quantities, to take advantage of favorable pricing or to hedge against anticipated price increases. This strategy is commonly used in volatile markets to stabilize costs and ensure supply continuity.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 92
Which of the following are advantages of partnering?
- A. Continual improvement
- B. Hard to displace
- C. Prioritization of transactions
- D. Supply chain consolidation
Answer: A,D
Explanation:
Partnering supports supply chain consolidation and continual improvement by fostering collaboration and shared objectives. These benefits align with the strategic goals of building resilient and efficient supply chains.
NEW QUESTION # 93
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