2026 Realistic Verified L4M6 exam dumps Q&As - L4M6 Free Update
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CIPS L4M6 exam, also known as the CIPS Supplier Relationships exam, is a comprehensive assessment that evaluates a candidate's knowledge and understanding of the supplier relationship management process. L4M6 exam is designed for procurement professionals who want to enhance their skills in managing supplier relationships and improve the effectiveness of their procurement strategies. It is an essential exam for individuals who have completed the CIPS Level 4 Diploma in Procurement and Supply and want to progress further in their procurement career.
NEW QUESTION # 83
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 strong in the public sector
- C. There are regulations that state competitive tender processes must be undertaken regularly
- D. Buyer power is weak in the public sector
Answer: C
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 # 84
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 unable to enter partnerships because they operate in a monopoly market
- B. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
- C. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this
- D. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
Answer: C
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.
NEW QUESTION # 85
Kirsty is designing a specification for a new contract and wants to include some qualitive KPIs for the new supplier, as well as quantitative. Which of the following could she include? Select TWO.
- A. Trust
- B. Information sharing
- C. Early supplier involvement
- D. Cost savings
- E. Deliveries in full and on time
Answer: A,B
Explanation:
The correct answers are information sharing and trust. Further qualitative KPIs are listed on p.102. Deliveries in full and on time would be a quantitative KPI and early supplier involvement is not a KPI at all.
NEW QUESTION # 86
Under what circumstances should a competitive tender not be completed? Select TWO.
- A. When the items are of low value
- B. When there is not a clear specification
- C. When the items are of high value
- D. When there is a clear specifications
Answer: A,B
Explanation:
Note the word 'NOT' in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it's time consuming to do, so you wouldn't do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn't a clear specification'. There's a useful table on p.73 of when you would and wouldn't use a competitive tender.
NEW QUESTION # 87
A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded.
Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose. Can the Manager do this?
- A. No- as this was not the lollypop sticks intended purpose
- B. No- the manager cannot prove that the product is faulty
- C. Yes- so long as the manager kept the receipt
- D. Yes- the lollypop sticks have gone mouldy- this is unacceptable
Answer: A
Explanation:
The correct answer is 'no- as this was not the lollypop sticks intended purpose'. When deciding if something is fit for purpose, you must consider its intended and common purpose. In this case it would be for making lollypops. As the garden centre is using them for something other than their intended purpose, they can't complain if it doesn't work. Fit for purpose is discussed on p.65 p.s. there's a question like this in the real exam - it's just not lollypop sticks ; )
NEW QUESTION # 88
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. Outsourcing
- C. Partnership
- D. Closer tactical
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
For one-off, low-value purchases that are readily available from multiple suppliers, anadversarialrelationship is often appropriate. This type of relationship is transactional, with minimal collaboration or long-term commitment. The focus is on obtaining the best price and terms for a specific purchase without investing in developing a deeper relationship.
Reference:
"Adversarial relationships are typically used for low-value, one-off purchases where there is little need for collaboration."- CIPS L4M6 Study Guide
NEW QUESTION # 89
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. Cost-based review of the market
- B. Review existing suppliers only
- C. Early engagement with the whole market
- D. Pre-define all requirements before approaching the market
Answer: C
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 # 90
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. Bottleneck
- C. leverage
- D. strategic
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 # 91
Which of the following is a characteristic of a traditional contracting agreement?
- A. Emphasis on mutual trust between purchaser and supplier
- B. Emphasis on quality assurance based on zero defects
- C. Emphasis on single source arrangement
- D. Emphasis on short-term business relationships
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
Traditional contracting agreements are typically characterized by:
* Short-Term Focus:These agreements often prioritize immediate needs over long-term collaboration.
* Transactional Nature:Emphasis is on price and terms rather than building strategic partnerships.
Reference:
"L4M6 Summarised Note"- Evocurement: L4M6 Summarised Note
NEW QUESTION # 92
A partnership relationship in portfolio analysis is appropriate for which category of procurement?
- A. Strategic security
- B. Tactical acquisition
- C. Tactical profit
- D. Strategic critical
Answer: D
Explanation:
Partnership relationships are typically used for strategic critical items where the product is essential to operations, and the supplier's input significantly impacts success. These relationships are nurtured through mutual trust and collaboration to mitigate supply risk and ensure long-term value.
NEW QUESTION # 93
Ranjit Singh is carrying out a procurement exercise for medical gases and has been advised that this is a restricted marketplace. A marketplace may be restricted for which of the following reasons?
* The marketplace is heavily regulated by governments and legislation
* Existing suppliers within the marketplace offer excellent services
* There are many suppliers already in operation within the marketplace
* High financial investment is required to enter the marketplace
- A. 2 and 4 only
- B. 1 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: B
Explanation:
A restricted marketplace is one where barriers to entry limit the number of suppliers. In L4M6, CIPS identifies two key causes:
* Heavy regulation and legislative controls (e.g. medical gases require safety, licensing, and compliance approvals)
* High capital investment requirements, such as specialised equipment, infrastructure, and certification Offering excellent services or having many suppliers does not restrict a market; these indicate competitive or mature markets.
Therefore, the correct combination is 1 and 4 only.
L4M6 Reference:
* Learning Outcome 1: Understand market structures and supplier positioning
* Topic: Market types and barriers to entry
* CIPS L4M6 Study Guide - Restricted and monopolistic markets
NEW QUESTION # 94
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn't hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?
- A. Manage them closely- they're key players in this procurement activity
- B. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
- C. Keep them satisfied- they will be wearing the uniform so need to be happy with it
- D. Minimal effort is required as they do not hold a lot of power in the business.
Answer: B
Explanation:
The housekeeping team have low power and high interest. According to Mendelow's stakeholder matrix, this puts them in the bottom right corner which is 'keep informed'. See p.81 for more information
NEW QUESTION # 95
Which of the following are advantages for the buyer in a partnership arrangement?
* Price stability
* Cost of relationship management
* Supplier complacency
* Cost savings achieved
- A. 2 and 4 only
- B. 1 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Partnership arrangements often lead to price stability, as both parties work collaboratively to manage costs and avoid market volatility. Additionally, such relationships can result in cost savings through joint process improvements, shared investments, and economies of scale. While managing a partnership does incur relationship management costs, these are typically offset by the benefits gained. Supplier complacency is a potential risk but not an inherent advantage of partnerships.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 96
A company's analysis shows that some of their products from a supplier fall into the 'strategic' segment of the supply positioning grid. They are meeting with the supplier with the intention that they enter into a partnership. The supplier views the company as 'core' to their business. Which one of the following factors would be most important in determining that a partnership agreement would be good for both companies?
- A. They have a high spend with the supplier
- B. Their products are technically simple
- C. They have a low spend with the supplier
- D. There are many suppliers in the market
Answer: A
Explanation:
For partnerships to succeed, both buyer and supplier must see significant value in the relationship. High spend indicates strategic importance, ensuring mutual commitment. If the buyer is a core customer for the supplier, and has a high spend, partnership sourcing is mutually beneficial.
NEW QUESTION # 97
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. Intellectual Property Rights
- B. Increased Costs
- C. Uninformed stakeholders
- D. Low quality product
Answer: A
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 # 98
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