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Vendor: | CIPS |
---|---|
Exam Code: | L4M6 |
Exam Name: | Supplier Relationships |
Exam Questions: | 243 |
Last Updated: | October 4, 2025 |
Related Certifications: | Level 4 Diploma in Procurement and Supply |
Exam Tags: | Professional Level Supply Chain Managers and Procurement Specialists |
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According to Michael Porter, what is procurement?
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?
The correct answer is 'items of high value'. This links into the EU procurement principle of 'Proportionality' meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered 'high value' is decided by 'thresholds'. These are amended every 2 years to account for inflation etc, but you don't need to know what the thresholds are for this exam. P.75
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?
The correct answer is 'Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise'. Be careful not to confuse mediation with arbitration -- arbitration is when the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues. See p.112 for more information on solving disputes
Which of the following macro-environmental factors can affect supply chains?
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.
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.
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
Security & Privacy
Satisfied Customers
Committed Service
Money Back Guranteed