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CIPS L4M6 Exam is designed to test the candidates' knowledge and understanding of the importance of supplier relationships in procurement and supply chain management. L4M6 exam covers a wide range of topics, including the different types of supplier relationships, the benefits of good supplier relationships, the risks associated with poor supplier relationships, and the strategies and techniques for building and maintaining strong supplier relationships.

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CIPS Supplier Relationships Sample Questions (Q14-Q19):

NEW QUESTION # 14
Which of the following are value-added benefits? Select THREE that apply.

Answer: A,C,D

Explanation:
Value-added benefits are additional services offered by suppliers that enhance the buyer's operations without significant additional cost. These typically include:
* Free training (A) - improves buyer staff skills.
* Customer service hotlines (C) - improves responsiveness and support.
* Expert consulting services (D) - provides specialist knowledge.
Options B, E, and F are operational necessities, not "value-added extras."


NEW QUESTION # 15
Marcus is an account manager for a company that sells maintenance spares for air conditioning units. He has a customer who persistently pays late, is very demanding in terms of constant requests, and the profit margin on the account is minimal. If Marcus were to use a supplier preferencing model to map this customer, what category would he place them into?

Answer: B

Explanation:
Comprehensive and Detailed Explanation:
In the Supplier Preferencing Model, customers are categorized based on their attractiveness and value to the supplier. A "Nuisance" customer is characterized by low profitability and high maintenance, often requiring disproportionate resources relative to the benefits they provide. Such customers may be deprioritized or even considered for discontinuation by the supplier.
Reference:
CIPS L4M6 Study Guide


NEW QUESTION # 16
Which of the following are correct statements with regards to a joint venture and with regards to a strategic alliance? Select TWO that apply.

Answer: B,E

Explanation:
Comprehensive and Detailed Explanation:
* Statement B:A strategic alliance is an agreement between two or more parties to pursue a set of agreed- upon objectives while remaining independent organizations. It is typically managed jointly by the partners to achieve mutual benefits without forming a new legal entity.Wikipedia
* Statement C:In a joint venture, two or more parties create a new, separate legal entity by contributing equity, and they share in the revenues, expenses, and control of the enterprise. This new company is formed to undertake specific business activities.
Reference:
CIPS L4M6 Study Guide


NEW QUESTION # 17
A university based in Europe has an objective to increase the number of students coming from the United States of America (USA). The university appoints a consultant with specialist knowledge of the USA market and has issued them with a performance-based specification. Which of the following is a characteristic of a performance specification?

Answer: D

Explanation:
Comprehensive and Detailed Explanation:
A performance specification outlines the desired outcomes or results without prescribing the exact methods to achieve them. This approach allows suppliers the flexibility to use their expertise and creativity to meet the buyer's requirements, thereby encouraging innovation.
Reference:
CIPS Procurement Specifications Guide


NEW QUESTION # 18
When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

Answer: A

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 # 19
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