Attested L4M6 Dumps PDF Resource [2025]
Latest L4M6 Actual Free Exam Questions Updated 226 Questions
One of the key benefits of passing the CIPS L4M6 exam is that it demonstrates a high level of expertise in the area of supplier relationships. This is an essential skill for anyone working in procurement or supply chain management, as suppliers play a critical role in ensuring the success of a business. By passing L4M6 exam, professionals can show that they have the knowledge and skills needed to manage suppliers effectively and help their organization achieve its goals.
NEW QUESTION # 133
A university based in Europe has an objective to increase the number of students coming from the United States of America (USA). The university appoints a consultant with specialist knowledge of the USA market and has issued them with a performance-based specification. Which of the following is a characteristic of a performance specification?
- A. It encourages innovation from the supplier
- B. It provides details of how the services must be carried out
- C. It enables the buyer to detail technical information
- D. It ensures the supplier must conform with the specification
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
A performance specification outlines the desired outcomes or results without prescribing the exact methods to achieve them. This approach allows suppliers the flexibility to use their expertise and creativity to meet the buyer's requirements, thereby encouraging innovation.
Reference:
CIPS Procurement Specifications Guide
NEW QUESTION # 134
Varying levels of commitment is one reason why many partnerships fail. Why is this?
- A. One party doesn't fulfil their KPIs
- B. Less profit is made.
- C. It can lead to a lack of trust
- D. Sufficient time and resources are put in
Answer: C
Explanation:
The correct answer is 'It can lead to a lack of trust' - this is a quote from p.162. The other answers are all incorrect; in a partnership KPIs are joint between the parties- so there wouldn't be a situation where one party doesn't fulfil their KPIs. Commitment doesn't necessarily have a direct correlation with profit so that answer is incorrect. 'Sufficient time and resources are put in' is a positive thing, so can't be a reason who a partnership fails.
NEW QUESTION # 135
A doctor's surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager's main motivation for doing this?
- A. The supplier is an expert in their field
- B. This will result in cost-savings
- C. This will free-up internal resources
- D. This will result in economies of scale
Answer: A
Explanation:
The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don't relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5
NEW QUESTION # 136
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 # 137
Which of the following describes differentiation as a method of competitive advantage?
* A company that sets out to be the lowest-cost producer in the market
* A company that will seek to be unique in a way that is valued by buyers
* A company producing a standard or budget cost product
* A company producing a product that attracts a premium price charge
- A. 2 and 4 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1 and 3 only
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Differentiation involves offering unique products or services that are valued by customers, allowing the company to charge premium prices. This strategy focuses on uniqueness and added value rather than competing solely on cost.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 138
What is a key driver for developing a partnership relationship?
- A. Unrestricted market
- B. Low-risk supplies
- C. Fast-changing technology
- D. Well-understood services
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Fast-changing technology necessitates close collaboration between buyers and suppliers to stay ahead of market trends and innovations. Partnerships enable shared development efforts, quicker adaptation, and mutual growth in dynamic technological environments.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 139
A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers. What would be the most beneficial way for them to initially narrow down the supply options?
- A. Predefine minimum standards suppliers must meet
- B. Look at lowest-cost suppliers only
- C. Go only to companies they have bought other products from
- D. Preselect companies who have the largest market share
Answer: A
Explanation:
Setting minimum standards helps filter suppliers efficiently, ensuring that only capable and reliable suppliers are considered. This approach supports both cost and quality objectives.
NEW QUESTION # 140
Marcus is an account manager for a company that sells maintenance spares for air conditioning units. He has a customer who persistently pays late, is very demanding in terms of constant requests, and the profit margin on the account is minimal. If Marcus were to use a supplier preferencing model to map this customer, what category would he place them into?
- A. Nuisance
- B. Exploitable
- C. Core
- D. Development
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
In the Supplier Preferencing Model, customers are categorized based on their attractiveness and value to the supplier. A "Nuisance" customer is characterized by low profitability and high maintenance, often requiring disproportionate resources relative to the benefits they provide. Such customers may be deprioritized or even considered for discontinuation by the supplier.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 141
Which one of the following is an advantage of early supplier involvement?
- A. No need for supplier non-disclosure agreements
- B. Understanding of supplier capabilities
- C. Large investment in supplier communications
- D. Supplier is responsible for all intellectual property risks
Answer: B
Explanation:
Early supplier involvement highlights supplier strengths and capabilities, enabling collaborative development.
This supports innovation and optimizes the procurement process.
NEW QUESTION # 142
What are service credits?
- A. A clause in a contract that allows for additional bonus payments for meeting KPIs
- B. When a buyer makes a purchase on credit
- C. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
- D. A type of payment where goods are delivered before payment is made
Answer: C
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION # 143
A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.
- A. Changes in the composition of the supply market
- B. Poor communication by the supplier
- C. The supplier has decided that it no longer wishes to keep the buying organisation as a customer
- D. Levels of supply availability in the market have decreased
- E. The buyer no longer believes in the value of partnership relationships
Answer: A,B
Explanation:
Comprehensive and Detailed Explanation:
The buying organisation's decision to terminate the partnership with supplier FGH is influenced by:
* Changes in the composition of the supply market: The entry of new suppliers into the market provides the buying organisation with more options, reducing dependency on FGH and enabling the pursuit of better partnerships.
* Poor communication by the supplier: FGH's lack of proactive communication regarding delivery delays has led to frustration, indicating a breakdown in the partnership's effectiveness.
These factors align with the principles of supplier relationship management, where effective communication and adaptability to market changes are crucial.
Reference:
"Poor communication by the supplier" and "Changes in the composition of the supply market" are valid reasons for terminating a supplier relationship.- Docsity: CIPS Supplier Relationships L4M6 Questions and Answers
NEW QUESTION # 144
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. Keep them satisfied- they will be wearing the uniform so need to be happy with it
- B. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
- C. Manage them closely- they're key players in this procurement activity
- D. Minimal effort is required as they do not hold a lot of power in the business.
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 # 145
Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE
- A. licences and permits
- B. economies of scale
- C. ethical sourcing
- D. health and safety
- E. access to capital
Answer: A,B,E
Explanation:
Barriers to entry are economies of scale (in the air travel industry you can't just start off small and grow), access to capital (you need to already have a lot of money to buy airplanes) and licences and permits (you need to ensure you have the correct licences to fly planes). These are listed on p.41. Other barriers include; strong brand identity already dominant in the market, high switching costs for buyers, access to distribution networks and government policy.
NEW QUESTION # 146
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
- A. The supplier becomes insolvent
- B. The supplier made one late delivery
- C. Supply base rationalisation
- D. The supplier suddenly increases prices
- E. The supplier has a change in senior management
Answer: B,E
Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
NEW QUESTION # 147
Which one of the following would constitute a succession issue when terminating a relationship?
- A. Deletion of old specifications
- B. Processing penalties
- C. Payment of old invoices
- D. Continuity of supplies
Answer: D
Explanation:
Ensuring continuity of supplies is critical during termination to avoid disruptions. Succession issues focus on maintaining essential operations while transitioning to new suppliers or arrangements.
NEW QUESTION # 148
Which of the following relationship types are listed on the relationship spectrum?
* Partnership
* Contractual
* Transactional
* Conspiratorial
- A. 2 and 4 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 2 and 3 only
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:
* Transactional:Short-term, price-focused relationships with minimal collaboration.
* Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.
While "contractual" refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. "Conspiratorial" is not a recognized relationship type in procurement contexts.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 149
A category buyer, managing an outsourcing project, is aware of the commercially sensitive nature of the project and wishes to adopt an accommodating approach to managing conflict amongst key stakeholders. Is this the correct approach?
- A. No, as the category manager has a low concern for others and a low concern for themselves
- B. No, as the category manager has a high concern for themselves and low concern for others
- C. Yes, as the category manager has a low concern for themselves but high concern for others
- D. Yes, as the category manager has a high concern for others and a high concern for themselves
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
The accommodating conflict management style is characterized by a low concern for self and a high concern for others. This approach involves yielding to others' needs and maintaining harmony, which can be appropriate in situations where preserving relationships is more important than achieving personal goals.
In the context of a commercially sensitive outsourcing project, adopting an accommodating approach may be suitable to ensure stakeholder cooperation and minimize conflict.
Reference:
"The accommodating conflict management style indicates a low concern for self and a high concern for other, and is often viewed as passive or submissive, in that someone complies with or obliges another."- Social Sci LibreTexts: Conflict Management Styles
NEW QUESTION # 150
A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?
- A. Early engagement with the whole market
- B. Pre-define all requirements before approaching the market
- C. Review existing suppliers only
- D. Cost-based review of the market
Answer: A
Explanation:
Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.
NEW QUESTION # 151
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