[2026] Use Valid New Free L4M6 Exam Dumps & Answers
L4M6 Braindumps PDF, CIPS L4M6 Exam Cram
CIPS L4M6 exam, also known as CIPS Supplier Relationships, is a globally recognized certification program designed specifically for procurement professionals who work with suppliers. CIPS Supplier Relationships certification program is ideal for those who have experience working with suppliers and want to develop their knowledge and skills to improve their supplier relationships. L4M6 exam covers a range of topics including supplier performance management, contract management, supplier risk management, and supplier development.
NEW QUESTION # 49
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?
- A. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival
- B. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
- C. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them
- D. Competing- the supplier needs to earn more money as they are struggling financially
Answer: A
Explanation:
The correct answer is 'accommodating'. This Question: is based
on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.
NEW QUESTION # 50
Fred is a new procurement manager at a large engineering firm. They procure 100s of components and use these to make kitchen appliances such as kettles and toasters. He has been asked by his manager to look into procuring a new component which will go into a new environmentally friendly kettle and has been asked to ensure that the firm receives value for money. What should Fred do?
- A. Invite known suppliers to bid for the contract
- B. Put together a business case to make the product in-house
- C. Contact current suppliers to try and get a good deal
- D. Hold an open competition
Answer: D
Explanation:
Fred should hold a competition as this is a 'key way of achieving value for money' p.67. Fred shouldn't put a business case together to make the product in-house without doing a make vs buy analysis, and that analysis showing make is the way to go. As the firm buy in 100s of components, it's very unlikely that making the component in-house would bring 'value for money'. He should also be careful of only looking at current suppliers or known suppliers- the best supplier of this new component might be unknown to the engineering firm at present.
NEW QUESTION # 51
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. Yes, as the category manager has a high concern for others and a high concern for themselves
- B. No, as the category manager has a high concern for themselves and low concern for others
- C. No, as the category manager has a low concern for others and a low concern for themselves
- D. Yes, as the category manager has a low concern for themselves but high concern for others
Answer: D
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 # 52
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?
- A. routine
- B. strategic
- C. Bottleneck
- D. leverage
Answer: A
Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). 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 # 53
What are service credits?
- A. A type of payment where goods are delivered before payment is made
- B. When a buyer makes a purchase on credit
- C. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
- D. A clause in a contract that allows for additional bonus payments for meeting KPIs
Answer: C
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION # 54
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?
- A. No, as there is a short-term focus on the relationship
- B. No, it is an example of a less time-intensive partnership
- C. Yes, as this is an example of a target costing approach
- D. Yes, because it includes elements of joint product development
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
The described relationship includes:
* Joint Product Development:Collaborative involvement in strategic projects indicates a deep partnership.
* Integrated Systems:JIT delivery systems require synchronized operations, reflecting significant integration.
These elements are hallmarks of a significant integration partnership.
Reference:
"Strategic Supply Chain Partnership"-ResearchGate: Strategic Supply Chain Partnership
NEW QUESTION # 55
If a stakeholder has high power in a business but isn't interested in your procurement activity, what should be your management style for dealing with this stakeholder?
- A. Manage closely - they're a key player
- B. Keep them satisfied - they have high power
- C. Minimum effort is required as they're not interested- do nothing
- D. Keep them informed - they have high power
Answer: B
Explanation:
The correct answer is 'keep satisfied' because the stakeholder is high power and low interest. This is the top left corner of Mendelow's Stakeholder Matrix - see p.81
NEW QUESTION # 56
A large office orders weekly from a stationery supplier. The items are low-cost, and if the delivery is a day late, it does not affect the running of the office. Where would this supplier be positioned in a supplier matrix?
- A. Leverage
- B. Bottleneck
- C. Routine
- D. Critical
Answer: C
Explanation:
Routine suppliers provide low-value, low-risk items with minimal operational impact. These suppliers are managed with minimal engagement or oversight in a cost-effective manner.
NEW QUESTION # 57
Which of the following is a characteristic of a partnership?
- A. Emphasis on quality checking products by inspection on delivery
- B. Emphasis on multiple sourcing
- C. Emphasis on unit price and looking at lowest cost
- D. Emphasis on mutual trust between purchaser and supplier
Answer: D
Explanation:
CIPS defines partnerships as collaborative, long-term relationships based on mutual trust, transparency, and shared objectives.
Key partnership characteristics include:
* Information sharing
* Joint problem-solving
* Continuous improvement
* Reduced reliance on inspection and adversarial control mechanisms
The other options reflect transactional or traditional relationships, focusing on cost, inspection, or sourcing flexibility rather than collaboration.
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Partnerships vs traditional relationships
* CIPS L4M6 Study Guide - Relationship types and behaviours
NEW QUESTION # 58
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
- A. Invitation to Tender
- B. Request for Quotation
- C. Pre-Qualification Questionnaire
- D. Request for Information
Answer: C,D
Explanation:
Request for Information and Pre-Qualification Questionnaire can be used for short-listing suppliers. Request for Quotation is used when the only variable is price and you would like suppliers to submit a price for you.
Invitation to Tender would be the next stage after RFI / PPQ- this is sent out to those suppliers who have passed selection, and details the second stage of the competition. See p.75 for more details.
NEW QUESTION # 59
In the public sector, there are many sources of information that a buyer can use to identify a suitable supplier.
Which of the following could be used? Select THREE
- A. Intranet
- B. Tradeshows
- C. Procurement Platforms
- D. OJEU
- E. Internal stakeholders' knowledge
Answer: B,C,E
Explanation:
The correct answers are; tradeshows, internal stakeholders' knowledge and e-procurement platforms. Intranet is incorrect as this is an internal system so you wouldn't find information on external suppliers on here the careful not to confuse intranet with internet). OJEU is also incorrect; this is the platform on which tender opportunities in the public sector are published- its not a list of suppliers.
NEW QUESTION # 60
When is partnering a particularly suitable approach to sourcing?
- A. Large supply bases
- B. High-risk contracts
- C. Common and repetitive items
- D. Low-cost items
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Partnering is most suitable in scenarios involving high-risk contracts, where the complexity, uncertainty, or strategic importance of the procurement necessitates close collaboration between the buyer and supplier. In such cases, a partnership allows for shared risk management, joint problem-solving, and mutual investment in achieving long-term objectives. This approach is less appropriate for low-cost, low-risk, or commoditized items where transactional relationships suffice.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 61
Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive 'value for money'. Which of the following should Jenny consider when drafting her ITT?
- A. Price only
- B. Whole life costs
- C. Availability
- D. Equity
Answer: B
Explanation:
Jenny should consider whole life costing. Ensuring value for money means considering a combination of price and quality throughout the lifetime of the product. See p.65 for more on 'Achieving Value for Money'
NEW QUESTION # 62
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?
- A. Conduct regular audits
- B. Ensure there is a damages clause in the contract
- C. Do frequent appraisals on the supplier
- D. Threaten the supplier with termination if he underperforms
Answer: A
Explanation:
The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.
NEW QUESTION # 63
Grey Stone Memorial Hospital is a private medical facility which has an idea for a vaccine to a deadly disease, but does not have the capacity to make the vaccine itself. It is considering partnering with a well-known pharmaceutical company in order to bring the vaccine to market. What is the biggest risk to Grey Stone?
- A. Increased Costs
- B. Uninformed stakeholders
- C. Low quality product
- D. Intellectual Property Rights
Answer: D
Explanation:
The correct answer is 'Intellectual Property Rights'. Grey Stone will need to share its idea for the vaccine with the pharmaceutical company and this is risky if there is no trust between the parties. See p.134 for more information on Risks of Partnerships.
NEW QUESTION # 64
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. Finance team
- B. Existing performing team
- C. Cross-organisational team
- D. Virtual team
Answer: C
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 # 65
Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.
- A. quality
- B. time
- C. focus
- D. cost
- E. place
Answer: A,B,E
Explanation:
The 5 Rights of procurement are; place, quality, quantity, time, price. (Price and Cost are not the same thing).
See p.38
NEW QUESTION # 66
Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier, for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent pricing increase. What is this tactic known as?
- A. Hedging buying
- B. Forward buying
- C. Derivative buying
- D. Spot buying
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Forward buyinginvolves purchasing goods in advance of actual need, often in larger quantities, to take advantage of favorable pricing or to hedge against anticipated price increases. This strategy is commonly used in volatile markets to stabilize costs and ensure supply continuity.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 67
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. The Intellectual Property Rights of the buyer become yours
- C. There is more flexibility when selling the product
- D. They no longer have to try as hard to win business.
Answer: 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.
NEW QUESTION # 68
A printing company is seeking to start developing a digital solution for its customers. They will need to outsource this element of the business as it is not an area they have worked in. What would be the most effective way for them to approach the market for a digital partner?
- A. Early engagement with the whole market
- B. Review existing suppliers only
- C. Pre-define all requirements before approaching the market
- D. Cost-based review of the market
Answer: A
Explanation:
Early engagement with the whole market is crucial when entering a new technical domain. It allows the company to assess the capabilities, innovations, and fit of various suppliers before locking down specifications. CIPS guidance emphasizes the value of market engagement in developing effective specifications and selecting the right partner.
NEW QUESTION # 69
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The protection of intellectual property rights
- B. The need to improve performance to satisfy the end customer
To increase production costs and lead-times - C. Working together will create synergies
- D. The marketplace has become more volatile
Answer: B,C,D
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.
NEW QUESTION # 70
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