2025 Realistic L4M6 Dumps Exam Tips Test Pdf Exam Material
Powerful L4M6 PDF Dumps for L4M6 Questions
NEW QUESTION # 29
David is sourcing a new cleaning contract as he is not impressed with his current cleaning company's performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method. Is this the correct way forward?
- A. No- a reverse e-auction will ensure only high quality suppliers bid for the opportunity
- B. Yes- an e-auction is an electronic system so it will be easy for David to compare bids
- C. Yes- an e-auction will allow David to secure the lowest possible price
- D. No- a reverse e-auction would be more suitable as it will secure the lowest price
Answer: D
Explanation:
The correct answer is 'No- a reverse e-auction would be more suitable as it will secure the lowest price'. An E-auction is something like eBay- where bids go up in price. If David wants to secure a lower price, he should use a Reverse E-Auction- where suppliers bid lower than the previous bid in order to win. For example, Supplier 1 offers to fulfil the contract at £50k per year, Supplier 2 can offer to beat this price by bidding £48k per year. Although Reverse E-Auctions may ensure cheaper prices, there are a lot of disadvantages to using this method. See p.21 and p.76 for more information
NEW QUESTION # 30
In a partnership who is responsible for decision making?
- A. The buyer
- B. The supplier
- C. The project steering committee
- D. Both the supplier and the buyer
Answer: D
Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152
NEW QUESTION # 31
Achieving value for money can often be described as the three Es? What are these?
- A. Effectiveness, Efficiency, Economy
- B. Efficiency, Economy, Ethics
- C. Economy, Efficiency, Environment
- D. Ethics, Environment, Economy
Answer: A
Explanation:
The three Es are; Effectiveness, Efficiency and Economy. Sometimes a 4th E is added which is Equity (but this is mainly for the public sector).
NEW QUESTION # 32
Sandra is a buyer for a large supermarket and has been increasing unhappy with the performance of a long-term supplier of bananas. Over time the deliveries have become unreliable and this has had impacts on the supermarket's profitability. What should Sandra do first?
- A. Review the market and look for an alternative supplier
- B. Give written notice to the supplier of plans to terminate
- C. Obtain business approval to terminate the contract
- D. Develop an exit strategy
Answer: C
Explanation:
The first step is to obtain business approval to terminate. If Senior Management don't give approval, then the rest of the stages can't happen and Sandra will be stuck with her current banana supplier. There's a good diagram on p.109 detailing the steps to supplier termination.
NEW QUESTION # 33
Why is it more difficult for buyers in the public sector to build relationships with suppliers?
- A. There are regulations prohibiting public sector buyers from developing relationships
- B. Buyer power is weak in the public sector
- C. Buyer power is strong in the public sector
- D. There are regulations that state competitive tender processes must be undertaken regularly
Answer: D
Explanation:
It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers.
See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).
NEW QUESTION # 34
A common reason attributed to many partnerships failing is ...
- A. Not winning every contract they bid for
- B. A bad advertising campaign
- C. Poor communication
- D. No contract being in place
Answer: C
Explanation:
Poor communication leads to misunderstandings, unmet expectations, and conflict, undermining partnerships.
CIPS stresses the importance of transparent and regular communication to ensure alignment and success.
NEW QUESTION # 35
Which of the following is not a stage in the relationship life-cycle?
- A. on-boarding
- B. qualification
- C. design the specification
- D. performance management
Answer: C
Explanation:
Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification, segmentation and risk management, performance management, development and innovation, phase out. P.13
NEW QUESTION # 36
Which of the following would you use to qualify new suppliers? Select THREE.
- A. collection
- B. clean
- C. commitment
- D. cost
- E. call
Answer: B,C,D
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 # 37
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 price increase. What is this tactic known as?
- A. Hedging buying
- B. Spot buying
- C. Forward buying
- D. Derivative buying
Answer: C
Explanation:
Forward buying involves purchasing in advance to lock in current prices and avoid future increases. This strategy is effective in volatile markets where price hikes are anticipated.
NEW QUESTION # 38
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?
- A. differentiation focus
- B. cost leadership
- C. differentiation
- D. cost focus
Answer: D
Explanation:
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13
NEW QUESTION # 39
Under which circumstances would a partnership sourcing approach be used?
- A. 2 and 4 only
- B. 1 and 3 only
- C. 1 and 4 only
- D. 1 and 2 only
Answer: B
Explanation:
Partnership sourcing is ideal for high-spend, high-risk situations where collaboration mitigates risks and maximizes value through innovation, efficiency, and trust.
NEW QUESTION # 40
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn't think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?
- A. Cost Analysis
- B. Value Engineering Analysis
- C. Make vs Buy Analysis
- D. Force Field Analysis
Answer: D
Explanation:
Richie should do a Force Field Analysis - this is explained on p.86 and is an idea of Kurt Lewin - it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn't go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin's Force Field Analysis.
NEW QUESTION # 41
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
- A. yes- it is important to develop all relationships
- B. yes- this will improve efficiencies for the buyer
- C. no- supplier development should only be done with strategic suppliers
- D. no- supplier development should only be done with tactical suppliers
Answer: C
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
NEW QUESTION # 42
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.
- A. customers
- B. legal department
- C. employees
- D. suppliers
- E. end-users
Answer: B,C,E
Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64
NEW QUESTION # 43
Which of the following relationship types are characterised by low levels of trust? Select TWO options
- A. Adversarial
(Correct) - B. Single- Sourced
- C. Partnership
- D. Arm's Length
- E. Outsourced
Answer: A,D
Explanation:
Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum
NEW QUESTION # 44
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. Cleaning
- B. Manufacturing of all bicycle parts
- C. Facilities Management
- D. Manufacturing of bells only
Answer: A,C
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
NEW QUESTION # 45
In a partnership who is responsible for decision making?
- A. The buyer
- B. The supplier
- C. The project steering committee
- D. Both the supplier and the buyer
Answer: D
Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc.
See p.152
NEW QUESTION # 46
A large construction group has a critical contract with a brick supplier. This represents high-value spend, and the contract has a five-year duration. What type of commercial relationship would be the most appropriate?
- A. Closer Tactical
- B. Outsourcing
- C. Partnership
- D. Transactional
Answer: C
Explanation:
Given the criticality and high value of the contract, a partnership is most suitable. This allows for long-term collaboration, mutual investment, and risk sharing to achieve strategic goals.
NEW QUESTION # 47
Value for money in the private sector is concerned with what?
- A. Getting the best quality possible
- B. Shareholder profit and business benefit
- C. Getting the best price possible
- D. Ensuring taxpayers' money is spent wisely
Answer: B
Explanation:
Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers' money is spent wisely. Value for money is a mixture of price and quality.
NEW QUESTION # 48
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 # 49
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Passing the CIPS L4M6 Certification Exam demonstrates that the candidate has a solid understanding of supplier relationship management and is capable of managing supplier relationships effectively. CIPS Supplier Relationships certification is recognized globally and is highly valued by employers in the procurement and supply chain industry. Candidates who pass the exam are awarded the CIPS L4M6 Certificate in Supplier Relationships, which is a testament to their commitment to professional development and expertise in procurement and supply chain management.
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