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One of the key benefits of taking the CIPS L4M6 Exam is that it provides procurement professionals with a recognized qualification that demonstrates their expertise in managing supplier relationships. This can be highly valuable for career advancement, as many organizations value CIPS qualifications when hiring or promoting procurement professionals. Additionally, the knowledge gained from the exam can help procurement professionals to make better decisions and achieve better outcomes in their day-to-day work.

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CIPS Supplier Relationships Sample Questions (Q145-Q150):

NEW QUESTION # 145
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.

A. Supply base rationalisation
B. The supplier has a change in senior management
C. The supplier becomes insolvent
D. The supplier made one late delivery
E. The supplier suddenly increases prices

Answer: B,D

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 # 146
Pablo has run an open- competition to secure a new contract for a supplier of paper for his Birthday Card making company. He has received 10 submissions from various suppliers and needs to put a team together to evaluate the bids. What type of team should Pablo consider?

A. A team of procurement experts
B. A team composed of internal stakeholders
C. A team composed of internal and external stakeholders
D. A cross-functional team

Answer: D

Explanation:
Pablo should use a 'cross-functional team'. CIPS love 'cross-functional teams' and refer to them frequently throughout the study guide. A cross-functional team is people from different departments who come together for a purpose, such as to evaluate a tender. The benefit of using a cross-functional team is that you get people with different experiences and knowledge. So in this example a Cross-Functional team could compose of people from various departments such as procurement, logistics, manufacturing and legal. P.76

NEW QUESTION # 147
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?

A. This allows staff to focus on other areas
B. This will be more expensive than providing the service in house
C. There is dependency on the supplier, which increases risk
D. The supplier will not perform as well as an internal team

Answer: C

Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'

NEW QUESTION # 148
The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modeling activity. This will be undertaken with a cross-organizational team of internal stakeholders and key strategic suppliers. What would be the buyer's initial objective from the cost modeling activity?

A. To understand the supplier's competitive threats
B. To understand the supplier's financial status
C. To understand the supplier's pricing strategy
D. To understand the supplier's investment plans

Answer: C

Explanation:
Cost modeling helps in understanding supplier pricing strategies, identifying cost drivers, and opportunities for negotiation or cost reduction, which supports profitability improvements.

NEW QUESTION # 149
A partnership relationship in portfolio analysis is appropriate for which category of procurement?

A. Strategic critical
B. Tactical profit
C. Tactical acquisition
D. Strategic security

Answer: A

Explanation:
Partnership relationships are typically used for strategic critical items where the product is essential to operations, and the supplier's input significantly impacts success. These relationships are nurtured through mutual trust and collaboration to mitigate supply risk and ensure long-term value.

NEW QUESTION # 150
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