Updated Jun-2026 Test Engine to Practice L4M6 Test Questions
L4M6 Real Exam Questions Test Engine Dumps Training With 265 Questions
NEW QUESTION # 125
Which of the following are advantages of partnering?
- A. Supply chain consolidation
- B. Prioritization of transactions
- C. Continual improvement
- D. Hard to displace
Answer: A,C
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 # 126
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 investment plans
- B. To understand the supplier's competitive threats
- C. To understand the supplier's pricing strategy
- D. To understand the supplier's financial status
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 # 127
Which of the following are not stages of team development? Select TWO.
- A. Achieving
- B. Accepting
- C. Forming
- D. Mourning
- E. Adjourning
Answer: A,B
Explanation:
This question is very, very similar to a real exam Question: and is
a really mean one. The CIPS study guide describes stages of team development as forming, storming, norming and performing. Of those listed in the book only forming is listed above. What the textbook fails to tell you is that some people add on two additional stages to this model which are mourning and adjourning. I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model) as it comes up a lot in the exam and the study guide doesn't really go into enough detail.
NEW QUESTION # 128
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 that are produced by lots of suppliers
- C. Items that are imported from outside the EU
- D. Items of strategic importance
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 # 129
In which procurement process is a PQQ not issued?
- A. Restricted
- B. Open
- C. Competitive Procedure with Negotiation
- D. Competitive Dialogue
Answer: B
Explanation:
Open Tender processes are a one-stage process which issues and ITT. It has no PQQ (selection) stage. P. 77
NEW QUESTION # 130
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 # 131
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 # 132
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Operations
- B. Marketing and Sales
- C. Inbound Logistics
- D. Human Resources
- E. Procurement
Answer: A,B,C
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 # 133
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
- A. Emphasis on short-term relationship
- B. Emphasis on long-term relationship
- C. Emphasis on inspection of incoming supplies
- D. Emphasis on quality with zero defects
- E. Emphasis on the lowest price
Answer: B,D
Explanation:
Partnerships emphasize mutual goals such as quality improvement and long-term collaboration, contrasting with adversarial relationships that focus on cost and short-term gains.
NEW QUESTION # 134
What is a valid reason for terminating a commercial relationship?
- A. Fulfilment of the contract
- B. The other party seeks to trade with other parties alongside you
- C. One late delivery
- D. A change of management within the other party, but no change to the company ethos
Answer: A
Explanation:
Contracts are normally terminated when their obligations have been fulfilled. Termination due to one late delivery or management changes would be unreasonable unless specified in the contract. Trading with other parties is common unless exclusivity clauses exist.
NEW QUESTION # 135
Under what circumstances should a competitive tender not be completed? Select TWO.
- A. When there is not a clear specification
- B. When the items are of low value
- 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 # 136
Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?
- A. Non-critical
- B. Leverage
- C. Strategic
- D. Bottleneck
Answer: D
Explanation:
Bottleneck items pose high risk despite low spend. Effective management of these suppliers minimizes supply chain disruptions, aligning with portfolio analysis strategies.
NEW QUESTION # 137
Products or services that are more suitable for partnership sourcing match which of the following criteria?
- A. 2 and 4 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 2 and 3 only
Answer: B
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 # 138
What is a disadvantage of including qualitative KPIs into a contract?
- A. They pull focus from the more important quantitative KPIs
- B. They can lead to poor supplier performance
- C. They make the buyer seem weak
- D. They are hard to measure
Answer: D
Explanation:
The correct answer is 'They are hard to measure' p.103
NEW QUESTION # 139
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 4 only
- B. 1 and 2 only
- C. 1 and 4 only
- D. 2 and 3 only
Answer: C
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 # 140
The use of technical jargon can result in what?
- A. Increased price
- B. Lack of trust
- C. Misunderstanding
- D. Lack of transparency
Answer: C
Explanation:
Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues
NEW QUESTION # 141
Which stage of team development is usual at the outset of working with stakeholders?
- A. Forming
- B. Storming
- C. Norming
- D. Performing
Answer: A
Explanation:
In Tuckman's model of team development, the Forming stage occurs at the outset. Team members meet, roles are unclear, and there is little conflict. Stakeholder teams will be in this stage initially before moving into storming (conflict), norming (agreement), and performing (high productivity).
NEW QUESTION # 142
A hospital located in a remote area experiences difficulties in attracting staff and regularly uses a staffing agency. Human resourcing is critical due to patient safety risks. The agency has been categorised as a strategic supplier. Which sourcing relationship should be adopted?
- A. Competitive sourcing
- B. Partnership sourcing
- C. Tactical sourcing
- D. Transactional sourcing
Answer: B
Explanation:
Strategic suppliers are those that are critical to business continuity and risk management. CIPS states that such suppliers require:
* Long-term commitment
* High levels of trust
* Joint planning and collaboration
Given the impact on patient safety and service continuity, a partnership sourcing relationship is appropriate, enabling shared responsibility, performance management, and continuous improvement.
Transactional or competitive sourcing would not provide the stability required.
L4M6 Reference:
* Learning Outcome 3: Understand supplier relationship strategies
* Topic: Strategic suppliers and partnerships
* CIPS L4M6 Study Guide - Supplier segmentation and SRM
NEW QUESTION # 143
A company purchases products from a supplier that falls into the 'strategic' segment of the supply positioning grid. They are drawing up a formal partnership agreement with the supplier. The supplier views the company as core to their business. What would be an important clause to include in the agreement to help make sure the partnership worked in a fully collaborative way?
- A. Time of the essence
- B. Continuous improvement
- C. Liquidated damages
- D. Force majeure
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
In strategic partnerships, including a continuous improvement clause is vital. This clause commits both parties to ongoing efforts to enhance processes, reduce costs, and improve quality over time. Such a commitment ensures that the partnership remains dynamic and responsive to changes, fostering long-term collaboration and mutual benefit.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 144
Price fluctuations can affect profitability. Is this statement correct?
- A. Yes, as sales may drop if the product is price inelastic
- B. No, price is not related to profitability
- C. No, only decisions made by the chief executive affect the price
- D. Yes, if the product's costs increase and the price does not
Answer: D
Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.
NEW QUESTION # 145
The Kraljic Model is most useful for which aspect of procurement?
- A. cost analysis
- B. category management
- C. risk management
- D. cost reduction
Answer: B
Explanation:
The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.
NEW QUESTION # 146
Which of the following are elements of a business that can develop a company's competitive advantage?
Select THREE.
- A. cost focus
- B. organisation culture
- C. human resource management
- D. natural resources
- E. cost leadership
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 # 147
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CIPS L4M6 exam is designed to test not only theoretical knowledge but also practical skills. It includes case studies and scenarios that require candidates to apply their knowledge in real-world situations. Passing L4M6 exam demonstrates that a candidate has a deep understanding of supplier relationship management and is capable of effectively managing suppliers in a professional and ethical manner.
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