CIPS L4M6 Supplier Relationships Online Training
CIPS L4M6 Online Training
The questions for L4M6 were last updated at Nov 23,2024.
- Exam Code: L4M6
- Exam Name: Supplier Relationships
- Certification Provider: CIPS
- Latest update: Nov 23,2024
Question #31
The Kraljic Model is most useful for which aspect of procurement?
- A . category management
- B . cost analysis
- C . risk management
- D . cost reduction
Correct Answer: A
A
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.
A
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.
Question #32
The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?
- A . Yes- the Public Sector is regulated by EU procurement regulations which prohibits this
- B . Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
- C . No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
- D . No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
Correct Answer: A
A
Explanation:
The correct answer is ‘Yes- the Public Sector is regulated by EU procurement regulations which prohibits this’. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
A
Explanation:
The correct answer is ‘Yes- the Public Sector is regulated by EU procurement regulations which prohibits this’. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
Question #33
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
- A . They may gain an increased volume of business
- B . There is more flexibility when selling the product
- C . The Intellectual Property Rights of the buyer become yours
- D . They no longer have to try as hard to win business.
Correct Answer: A
A
Explanation:
The correct answer is ‘They may gain an increased volume of business’. The other options are just not true. See p.130 for advantages and disadvantages of partnerships from both the buyer and supplier’s perspective. This is a hot topic for the exam.
A
Explanation:
The correct answer is ‘They may gain an increased volume of business’. The other options are just not true. See p.130 for advantages and disadvantages of partnerships from both the buyer and supplier’s perspective. This is a hot topic for the exam.
Question #34
What is value mapping?
- A . Analysing the costs that go into making a product
- B . Creating value through the elimination of waste and operational inefficiencies
- C . Segmenting suppliers based on the value they bring to the company
- D . Make vs Buy decision
Correct Answer: B
B
Explanation:
The definition of value mapping is given on p.69 this is; ‘a process in which value is created through the elimination of waste and operational inefficiencies’. It ties into JIT / Lean.
B
Explanation:
The definition of value mapping is given on p.69 this is; ‘a process in which value is created through the elimination of waste and operational inefficiencies’. It ties into JIT / Lean.
Question #35
Which of the following are valid strategies for dealing with conflict? Select THREE
- A . Competing
- B . Collecting
- C . Contesting
- D . Compromising
- E . Collaborating
Correct Answer: A,D,E
A,D,E
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
A,D,E
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
Question #36
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 . There is dependency on the supplier, which increases risk
- C . The supplier will not perform as well as an internal team
- D . This will be more expensive than providing the service in house
Correct Answer: B
B
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 NO: for this to be true .
What is true is the RISK is greater. The other answers are incorrect; the QUESTION NO: 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’
B
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 NO: for this to be true .
What is true is the RISK is greater. The other answers are incorrect; the QUESTION NO: 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’
Question #37
Which of the following macro-environmental factors can affect supply chains?
- A . social, economic and cost
- B . environmental, ethical and cost
- C . political, economic and social
- D . environmental, ergonomic and social
Correct Answer: C
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.
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.
Question #38
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals.
Which of the following is Polly Manufacturing likely to outsource? Select TWO options.
- A . Manufacturing of all bicycle parts
- B . Manufacturing of bells only
- C . Facilities Management
- D . Cleaning
Correct Answer: C,D
C,D
Explanation:
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their ‘core’ business so they should retain this in-house
C,D
Explanation:
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their ‘core’ business so they should retain this in-house
Question #39
Which of the following factors would you use to analyse the macro-environment? Select THREE.
- A . social
- B . cultural
- C . political
- D . philosophical
- E . legislative
Correct Answer: A,C,E
A,C,E
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
A,C,E
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
Question #40
Which of the following are primary activities, according to Porter’s Value Chain? Select THREE.
- A . Procurement
- B . Operations
- C . Marketing and Sales
- D . Human Resources
- E . Inbound Logistics
Correct Answer: B,C,E
B,C,E
Explanation:
This QUESTION NO: 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
B,C,E
Explanation:
This QUESTION NO: 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
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