CIPS L4M6 Supplier Relationships Online Training
CIPS L4M6 Online Training
The questions for L4M6 were last updated at Apr 23,2025.
- Exam Code: L4M6
- Exam Name: Supplier Relationships
- Certification Provider: CIPS
- Latest update: Apr 23,2025
A law firm is ending an agreement with a client they have represented for many years.
What is the most important legal consideration to be taken before terminating?
- A . Employee rights
- B . Confidentiality
- C . Finance
- D . Security
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 product is highly differentiated
- C . There is potential for backward integration
- D . The switching costs are high
- E . The volume purchased is not important
- F . The product is undifferentiated
Which of the following are advantages of partnering?
- A . Supply chain consolidation
- B . Continual improvement
- C . Hard to displace
- D . Prioritization of transactions
Which of the following are the stages of team development?
- A . Starting, forming, benchmarking, performing
- B . Forming, storming, norming, performing
- C . Beginning, working, reviewing, performing
- D . Introducing, forming, managing, performing
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 . Adversarial
- B . Closer tactical
- C . Outsourcing
- D . Partnership
In the 1990s, a manufacturer of portable music players partnered with a mini-disk producer. The aim of the partnership was to reduce the size and cost of the devices and enhance flexibility. Sales of the product after launch were low due to a competitive launch of small digital players, which offered better flexibility to customers at a comparable price. The partners suffered substantial loss and never recovered the investment.
In order to mitigate the risk described, what should both partners have considered before investing in the product? Select the TWO that apply.
- A . Fast charging markers
- B . Customer price expectation
- C . New substitute technology
- D . Cost of investment
- E . Legal implication of partnering
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit.
Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?
- A . Improving timescales
- B . Quality enhancement
- C . Reduction of inventory
- D . Price management
Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects. They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directions and explore new markets for long-term growth. There is no formal contract in place between the two companies.
Using the relationship spectrum, what relationship does this scenario best describe?
- A . Constructive
- B . Transactional
- C . Co-operative
- D . Partnership
How would a buyer measure value for money from a relationship with a new supplier for goods?
- A . Audit of how suppliers promise
- B . Lowest possible cost
- C . Balance of quality and cost
- D . Quality and volume of goods
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 competitive threats
- B . To understand the supplier’s financial status
- C . To understand the supplier’s pricing strategy
- D . To understand the supplier’s investment plans
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