2026 New L4M6 Dumps - Real CIPS Exam Questions
Dependable L4M6 Exam Dumps to Become CIPS Certified
CIPS L4M6 is an important exam that focuses on the area of supplier relationships. L4M6 exam is designed for people who are working in procurement and supply chain management, and wish to gain a deeper understanding of how to manage supplier relationships effectively. L4M6 exam is also for those who wish to obtain a CIPS Level 4 Diploma in Procurement and Supply.
CIPS L4M6 exam covers a wide range of topics, including supplier segmentation, supplier performance management, supplier development, and relationship management strategies. Candidates are expected to understand the importance of effective supplier relationship management and the impact it has on the procurement function. They should be able to identify the key factors that influence supplier relationships and develop techniques to manage them effectively. L4M6 exam also evaluates the candidate's ability to analyze supplier data, develop supplier performance metrics, and implement supplier improvement plans. Successful completion of the CIPS L4M6 exam is a testament to a candidate's expertise in supplier relationship management and can enhance their career prospects in the procurement field.
NEW QUESTION # 62
A procurement manager has established a project steering committee to undertake regular reviews and audits, and to ensure a successful buyer/supplier long-term partnership. The committee membership will comprise the procurement manager (chairperson), three of their cross-functional colleagues, the supplier's partnership project manager, and an independent member. Which of the following is a potential disadvantage of the proposed committee structure?
- A. The size of the committee is too large as there should be a limit of three members
- B. The committee includes an independent member
- C. The supplier does not have equal membership in the committee
- D. The procurement manager should not be the chairperson of the committee
Answer: C
Explanation:
Effective partnership governance requires balanced representation from both buyer and supplier. If the supplier has fewer members than the buyer, decision-making power becomes unequal, potentially undermining collaboration.
NEW QUESTION # 63
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?
- A. routine
- B. leverage
- C. strategic
- D. bottleneck
Answer: C
Explanation:
Friendly Flour Ltd is a strategic supplier; this is a critical supplier, responsible for core products. They represent a high risk impact and a high cost impact. This is the top-right hand corner of the Kraljic matrix.
There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix (see p.20)
NEW QUESTION # 64
Achieving value for money can often be described as the three Es? What are these?
- A. Effectiveness, Efficiency, Economy
- B. Efficiency, Economy, Ethics
- C. Economy, Efficiency, Environment
- D. Ethics, Environment, Economy
Answer: A
Explanation:
The three Es are; Effectiveness, Efficiency and Economy. Sometimes a 4th E is added which is Equity (but this is mainly for the public sector).
NEW QUESTION # 65
What is the correct order for the 5 stages of team development?
- A. Norming, adjourning, storming, performing, forming
- B. Storming, norming, adjourning, performing, forming
- C. Forming, storming, norming, performing, adjourning
- D. Forming, storming, performing, adjourning, norming
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Bruce Tuckman's model of team development outlines five stages:
* Forming- Team members get acquainted and establish ground rules.
* Storming- Members begin to communicate their feelings but still view themselves as individuals rather than part of the team.
* Norming- People feel part of the team and realize that they can achieve work if they accept other viewpoints.
* Performing- The team works in an open and trusting atmosphere where flexibility is the key and hierarchy is of little importance.
* Adjourning- The team conducts an assessment of the year and implements a plan for transitioning roles and recognizing members' contributions.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 66
George is running a competition to find a supplier to install solar panels on the roof of his factory. The energy this produces will power some of the machines. Cost is an important factor, but there are also other considerations that are important such as how long the solar panels will last, and the maintenance costs if they ever break. What should George do?
- A. Run a separate tender for a company who can provide reactive maintenance to the solar panels
- B. Only invite suppliers he knows will be able to provide good quality products which won't break
- C. Use a weighted award criteria
- D. Evaluate the bids on price only as this is an important factor
Answer: C
Explanation:
George should use a weighted award criteria - this will allow him to judge suppliers not only on cost, but also on the quality of their products and whether or not they can provide maintenance. For example George could weight the bids in this way; 40% cost, 30% durability of the panels and 30% maintenance costs. For more information on how weighted award criteria works see p.78
NEW QUESTION # 67
Which of the following are advantages for the buyer in a partnership arrangement?
* Price stability
* Cost of relationship management
* Supplier complacency
* Cost savings achieved
- A. 2 and 3 only
- B. 1 and 4 only
- C. 2 and 4 only
- D. 1 and 2 only
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Partnership arrangements often lead to price stability, as both parties work collaboratively to manage costs and avoid market volatility. Additionally, such relationships can result in cost savings through joint process improvements, shared investments, and economies of scale. While managing a partnership does incur relationship management costs, these are typically offset by the benefits gained. Supplier complacency is a potential risk but not an inherent advantage of partnerships.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 68
In which procurement process is a PQQ not issued?
- A. Competitive Dialogue
- B. Restricted
- C. Open
- D. Competitive Procedure with Negotiation
Answer: C
Explanation:
Open Tender processes are a one-stage process which issues and ITT. It has no PQQ (selection) stage. P. 77
NEW QUESTION # 69
Danny is procuring a new IT software, which he doesn't know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny's next step?
- A. Issue an ITT
- B. Issue a RFQ
- C. Issue a RFI
- D. Issue an OJEU
Answer: C
Explanation:
Danny should issue a RFI (Request for Information). His next step would be to find out more about the products available by asking suppliers for information- this will help him put a spec together before he goes out to tender. The other options mean; RFQ - request for quotation- when you ask suppliers to submit a price.
ITT- Invitation to tender - a document you send out to suppliers which details all the information about the tender (this usually involves both price and quality components of assessment). OJEU- Official Journal of the European Union- where tenders for the Public Sector are published. For more info on RFI see p.74
NEW QUESTION # 70
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
- A. Pre-Qualification Questionnaire
- B. Invitation to Tender
- C. Request for Quotation
- D. Request for Information
Answer: A,D
Explanation:
Request for Information and Pre-Qualification Questionnaire can be used for short-listing suppliers. Request for Quotation is used when the only variable is price and you would like suppliers to submit a price for you.
Invitation to Tender would be the next stage after RFI / PPQ- this is sent out to those suppliers who have passed selection, and details the second stage of the competition. See p.75 for more details.
NEW QUESTION # 71
A competitive advantage can be gained by doing what?
- A. Engaging in market research
- B. Completing formal tenders for all buying requirements
- C. Increasing your prices
- D. Building better relationships with primary stakeholders
Answer: D
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 # 72
In a partnership who is responsible for decision making?
- A. The buyer
- B. Both the supplier and the buyer
- C. The supplier
- D. The project steering committee
Answer: B
Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152
NEW QUESTION # 73
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The protection of intellectual property rights
- B. Working together will create synergies
- C. The need to improve performance to satisfy the end customer
- D. The marketplace has become more volatile
Answer: B,C,D
Explanation:
To increase production costs and lead-times
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.
NEW QUESTION # 74
National Hospital Trust (NHT) has entered into a partnership relationship with a major facilities management provider. The two organizations have agreed on the approach to undertake regular reviews and audits. The audit approach will include which of the following?
- A. Category management and supplier rationalization
- B. Macro and micro environmental analysis
- C. Lessons learned and continuous improvement
- D. Specification development and management
Answer: C
Explanation:
Regular reviews focusing on lessons learned and continuous improvement ensure the partnership remains effective and aligned with objectives. This supports ongoing collaboration and operational excellence.
NEW QUESTION # 75
If a stakeholder has high power in a business but isn't interested in your procurement activity, what should be your management style for dealing with this stakeholder?
- A. Keep them informed - they have high power
- B. Manage closely - they're a key player
- C. Keep them satisfied - they have high power
- D. Minimum effort is required as they're not interested- do nothing
Answer: C
Explanation:
The correct answer is 'keep satisfied' because the stakeholder is high power and low interest. This is the top left corner of Mendelow's Stakeholder Matrix - see p.81
NEW QUESTION # 76
Is it correct to suggest that the sole objective of partnership sourcing is to achieve the lowest acquisition cost?
- A. No, because partnership sourcing considers 'lowest acquisition cost' together with aspects of supplier partnerships
- B. Yes, the concept of 'lowest acquisition cost' focuses on collaboration just like partnership sourcing does
- C. No, partnership sourcing is not applicable in one-off capital purchases where the concept of 'lowest acquisition cost' applies
- D. Yes, because the concept of 'lowest acquisition cost' ignores the quoted price and focuses on long-term cost factors
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Partnership sourcing is a strategic approach that emphasizes long-term collaboration between buyers and suppliers to achieve mutual benefits. While achieving a competitive acquisition cost is a component, it is not the sole objective. Partnership sourcing also focuses on:
* Quality Improvement:Ensuring that products or services meet or exceed quality standards.
* Innovation:Collaborating on new product development and process improvements.
* Risk Management:Sharing information to anticipate and mitigate risks.
* Supply Chain Efficiency:Streamlining processes to reduce lead times and inventory levels.
Therefore, while cost is important, partnership sourcing encompasses a broader range of objectives aimed at creating value for both parties.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 77
What is a key driver for developing a partnership relationship?
- A. Low-risk supplies
- B. Well-understood services
- C. Unrestricted market
- D. Fast-changing technology
Answer: D
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 # 78
Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to 'Contract Frustration'. What could be the reason for this?
- A. The supplier has become insolvent
- B. An unexpected incident has occurred beyond anyone's control
- C. The supplier has leaked confidential information about Real Pirates Ltd to a competitor
- D. The supplier has committed a material breach
Answer: B
Explanation:
The correct answer is 'An unexpected incident has occurred beyond anyone's control'. A good example of this would be the Covid-19 pandemic- neither the buyer nor supplier could have predicted this, and if this means that the contract can't be completed - then the contract can be terminated (in the UK at least). A way to avoid this would be to include a Force Majeur clause listing possible circumstances that could occur. When there's a Force Majeur clause, these eventualities are now classed as foreseen rather than unforeseen. See p.
108
NEW QUESTION # 79
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE
- A. Gearing Ratio
- B. Liquidity Ratio
- C. Risk Assessments
- D. Full pricing information
- E. Method Statements
Answer: C,D,E
Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76
NEW QUESTION # 80
Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?
- A. Put together a business case to make the product in-house
- B. Hold an open competition
- C. Contact current suppliers to try and get a good deal
- D. Invite known suppliers to bid for the contract
Answer: B
Explanation:
Fred should hold a competition as this is a 'key way of achieving value for money' p.67. Fred shouldn't put a business case together to make the product in-house without doing a make vs buy analysis, and that analysis showing make is the way to go. As the firm buy in 100s of components, it's very unlikely that making the component in-house would bring 'value for money'. He should also be careful of only looking at current suppliers or known suppliers- the best supplier of this new component might be unknown to the engineering firm at present.
NEW QUESTION # 81
Which of the following are elements of a business that can develop a company's competitive advantage?
Select THREE.
- A. cost leadership
- B. organisation culture
- C. human resource management
- D. natural resources
- E. cost focus
Answer: B,C,D
Explanation:
This is one of those questions you have to read carefully- it asks for 'elements of a business'. Cost focus and cost leadership are ways a company can improve their competitive advantage, but they're not elements of a business. The other three options are. Porter created a list of elements of a business that can help a company's competitive advantage- these can be found on p.33-34
NEW QUESTION # 82
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
* Negative leaders
* Silent opponents
* Supporters
* Promoters
- A. 2 and 3 only
- B. 3 and 4 only
- C. 1 and 4 only
- D. 1 and 2 only
Answer: C
Explanation:
In stakeholder management,Negative leadersandPromoterspossess high influence over others:
* Negative leaders: Individuals who oppose the project and can sway others against it due to their influence.
* Promoters: Advocates who support the project and can positively influence others.
Understanding these dynamics is crucial for effectively managing stakeholder resistance.
As highlighted in the CIPS study materials:
"Overcoming resistance- Promoters - They have a high influence on other stakeholders and support the project. They support and empower."
NEW QUESTION # 83
Which of the following would be the most likely driver for a manufacturing organisation to consider partnership sourcing?
- A. The marketplace is stable and costs are decreasing
- B. Product life cycles are shortening
- C. Raw material prices are reducing
- D. To increase the number of suppliers
Answer: B
Explanation:
Shortening product life cycles require close collaboration and innovation between buyer and supplier to stay competitive. Partnership sourcing provides shared development, reduced lead times, and improved responsiveness. Stable markets or falling costs do not justify partnerships; they are best suited for high-risk, fast-changing environments.
NEW QUESTION # 84
Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn't need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?
- A. No- Debbie should continue using the same supplier- it doesn't matter that the contract has expired.
- B. Yes- competitive tender is the only option to procure uniforms
- C. No- the contract is not of significant value
- D. Yes - the contract has now expired so she must do a new competitive tender
Answer: C
Explanation:
The correct answer is 'no-the contract is not of significant value'. CIPS state that competitive tenders should only be used when 'the item or service is of significant value' p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.
NEW QUESTION # 85
A textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers. Which commercial relationship type would be most effective for the buyer to choose?
- A. Outsourcing
- B. Adversarial
- C. Partnership
- D. Closer tactical
Answer: B
Explanation:
For low-value, non-recurring items with many suppliers, an adversarial relationship focusing on competitive pricing and minimal engagement is most appropriate. Partnerships are unnecessary for such transactions.
NEW QUESTION # 86
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
- A. suppliers are selling differentiated products
- B. there are no barriers to entry
- C. competition is not strong
- D. competition is at its highest level possible
Answer: B,D
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40
NEW QUESTION # 87
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CIPS L4M6 Certification Exam covers critical aspects of supplier management, including supplier selection, evaluation, and performance management. It also covers the development of strategic relationships with suppliers, contract management, and the resolution of disputes. Procurement professionals who obtain this certification are well-equipped to manage supplier relationships effectively and ensure that their organizations receive the best value from their suppliers.
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