Real L4M6 Exam PDF Test Engine Practice Test Questions
CIPS L4M6 Real 2026 Braindumps Mock Exam Dumps
CIPS L4M6 exam covers a range of topics related to managing supplier relationships, including understanding supplier performance, developing supplier improvement plans, managing supplier risk, and implementing supplier governance. These topics are essential for procurement professionals who work with suppliers to ensure that their organization meets its strategic goals and objectives. L4M6 exam is designed to equip procurement professionals with the knowledge and skills needed to manage supplier relationships effectively.
NEW QUESTION # 70
Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?
- A. Yes, as the buyer will then be responsible for providing additional business to the supplier
- B. Yes, as this will allow the buyer enough time to mobilize a new contract
- C. No, as this will guarantee a hostile end to the buyer-supplier relationship
- D. No, as this will be in breach of statutory contract law requirements
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Extending the notice period in a mutual termination for convenience clause provides the buyer with additional time to:
* Identify and engage alternative suppliers
* Ensure continuity of supply
* Mitigate risks associated with abrupt contract termination
This proactive approach aligns with best practices in contract management, allowing for smoother transitions and minimizing potential disruptions.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 71
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. leverage
- B. strategic
- C. routine
- D. bottleneck
Answer: B
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 # 72
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.
- A. There are few substitute products
- B. The volume purchased is not important
- C. There is potential for backward integration
- D. The product is undifferentiated
- E. The product is highly differentiated
- F. The switching costs are high
Answer: A,E,F
Explanation:
Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.
NEW QUESTION # 73
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?
- A. You discover that the supplier has a high profit margin
- B. It will allow for consolidation in the supply chain
- C. The buyer wishes to create a new product and requires input from a supplier
- D. Sudden changes in the marketplace
Answer: D
Explanation:
The correct answer is 'Sudden changes in the marketplace' - this is a reason a buyer would be reactive.
Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163
NEW QUESTION # 74
A local council requires facilities management services for ten schools based in their region. This service is a high spend, high risk, critical contract. Which sourcing approach would be the most appropriate?
- A. Direct negotiation
- B. Request for quotation
- C. Statement of source requirements
- D. Competitive tendering
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
For high-value and high-risk contracts, such as facilities management services for multiple schools, competitive tenderingis the most appropriate sourcing approach. This process involves inviting multiple suppliers to submit bids, ensuring transparency, fairness, and the opportunity to assess various proposals to select the most suitable supplier. It helps in mitigating risks and achieving value for money.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 75
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Human Resources
- B. Procurement
- C. Marketing and Sales
- D. Operations
- E. Inbound Logistics
Answer: C,D,E
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 # 76
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?
- A. No- it would be better to solve the disagreement in-house
- B. Yes- mediation means the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues
- C. Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise
- D. No- mediation could have a negative impact on the companies' reputation
Answer: C
Explanation:
The correct answer is 'Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise'. Be careful not to confuse mediation with arbitration - arbitration is when the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues. See p.112 for more information on solving disputes
NEW QUESTION # 77
Products or services that are more suitable for partnership sourcing match which of the following criteria?
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: A
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 # 78
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. Partnership sourcing
- B. Competitive sourcing
- C. Transactional sourcing
- D. Tactical sourcing
Answer: A
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 # 79
An IT company is developing and launching a new product to the market. The project requires experts from different divisions of the business. What type of team should run this project?
- A. Virtual team
- B. Cross-organisational team
- C. Finance team
- D. Existing performing team
Answer: B
Explanation:
Across-organisational teambrings together specialists from various departments-such as R&D, marketing, finance, and production-to collaborate on complex projects. This team structure enables diverse perspectives, innovative solutions, and efficient decision-making, which are crucial when developing and launching new products. The CIPS L4M6 guide emphasizes the importance of integrated teamwork in achieving strategic outcomes in procurement and supply chain projects.
NEW QUESTION # 80
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 high concern for themselves and low concern for others
- B. No, as the category manager has a low concern for others and a low concern for themselves
- 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 # 81
Which of the following would you use to qualify new suppliers? Select THREE.
- A. commitment
- B. clean
- C. collection
- D. call
- E. cost
Answer: A,B,E
Explanation:
This is based on a real exam question- it's looking to see if you can remember Carter's 10 Cs. These are; cash, cost, consistency, culture, clean, communication, competency, capacity, commitment and control. (p.12 in the text book)
NEW QUESTION # 82
Which of the following are recognised organisational culture types? Select THREE
- A. Role
- B. Team
- C. Knowledge
- D. Person
- E. Power
Answer: A,D,E
Explanation:
The correct answer is power, role and person. This is part of Hardyman's Cultural Types on p.169 (there are four- the other one is task). There's quite a few questions on this in the exam, so it's worth doing some additional research on this prior to the exam as the study guide doesn't provide much detail on this.
NEW QUESTION # 83
Which of the following is an important step in partnership sourcing?
- A. Selling the idea to management
- B. Secretly formulating an exit strategy
- C. Imposing and enforcing unrealistic KPIs
- D. Ensuring the other party has as little margin as possible
Answer: A
Explanation:
For partnership sourcing to succeed, senior management buy-in is essential. Selling the idea internally ensures commitment of resources, trust, and long-term strategy alignment. Options A and D undermine partnerships, while B contradicts the open and collaborative nature of partnership sourcing.
NEW QUESTION # 84
In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?
- A. Procurement Identification Number
- B. Procurement Information Number
- C. Prior Information Notice
- D. Possibilities Identified Notice
Answer: C
Explanation:
A PIN is a 'prior information notice' - it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 "supplier identification- public sector" for more details.
NEW QUESTION # 85
Which of the following macro-environmental factors can affect supply chains?
- A. environmental, ergonomic and social
- B. environmental, ethical and cost
- C. political, economic and social
- D. social, economic and cost
Answer: C
Explanation:
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.
NEW QUESTION # 86
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 3 only
- B. 1 and 3 only
- C. 2 and 4 only
- D. 1 and 2 only
Answer: C
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 # 87
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