Exam Code: L4M6
Exam Name: CIPS Supplier Relationships
Certification Provider: CIPS
Corresponding Certification: CIPS Level 4 Diploma in Procurement and Supply
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CIPS L4M6 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the dynamics of relationships in supply chains: This section of the exam measures the skills of Supply Chain Managers and Procurement Specialists. It covers the different types of commercial relationships in supply chains, including internal and external relationships, the relationship spectrum, and the lifecycle. A key skill measured is the ability to differentiate between various commercial relationships. The section also explores portfolio analysis techniques to assess relationships, using matrices to identify supply, supplier, and purchaser positioning. Candidates are expected to understand competitive forces impacting supply chain relationships, including sources of competitive rivalry and STEEPLED factors.
Topic 2
  • Understand the concept of partnering: This section evaluates the skills of Partnership Managers and covers the concept of partnering in supply chains. It analyzes when to use partnering, comparing it with traditional contracting agreements. A key skill assessed is appraising the process of partnership implementation. The section explores types of partnering, drivers, advantages, and suitable circumstances for this approach.
Topic 3
  • Understand processes and procedures for working successfully with stakeholders: This section targets Stakeholder Relationship Managers and focuses on organizational procedures for sourcing goods and services. It covers supplier identification, assessment, and selection processes to secure successful relationships. A critical skill measured is analyzing the purpose of organizational procedures in sourcing. The section also compares team management techniques for positive stakeholder relationships, including conflict resolution and working with cross-organizational teams.

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/supplier-relationships/

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CIPS Supplier Relationships Sample Questions:

A procurement category manager has been asked to advise the project team on the appropriate selection and awarding process for a complex procurement project in a multi-geographical organisation. It is likely the specification will be updated during the process, and several phases of negotiation will be required throughout. This will include final negotiations with the winning bidder. The team are therefore aware it will be a time-consuming project. Which process should be advised?

  • A. Competitive dialogue
  • B. Request for quotation
  • C. Restricted tender
  • D. Open tender
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

A local government procurement team is undertaking a full review of their current internal working processes.
The team of buyers currently have a partnership-style relationship with their routine suppliers. Is this the best relationship style to use?

  • A. No, as there are many suppliers available
  • B. Yes, as they present a great deal of risk to the organization
  • C. No, as these are critical items to the buying organization
  • D. Yes, as these are low-value items
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Early Supplier Involvement can be described as a collaborative relationship between a buyer and a supplier to develop a new project. Handfield's model describes four different levels of supplier involvement ranging from none to 'black box' (which is when the design is primarily driven by the supplier. What other level features on this model?

  • A. White Box - when there is informal integration and the buyer consults with a supplier on a design
  • B. Grey Box - when the involvement is buyer driven
  • C. Red Box- when the supplier provides legal advice to the buyer on areas such as copywrite
  • D. Blue Box - when the buyer creates the product without input from the supplier
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.

  • A. quality
  • B. time
  • C. place
  • D. focus
  • E. cost
Reveal Solution  Discussion  0

Correct Answer: A,B,C  🗳️

Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?

  • A. Partnering relationship
  • B. Quality-based relationship
  • C. Traditional contracting relationship
  • D. Cost-based relationship
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Explanation: Only visible for VCE4Plus members. You can sign-up / login (it's free).

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