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| Vendor: | CIPS |
|---|---|
| Exam Code: | L4M6 |
| Exam Name: | Supplier Relationships |
| Exam Questions: | 243 |
| Last Updated: | April 15, 2026 |
| Related Certifications: | Level 4 Diploma in Procurement and Supply |
| Exam Tags: | Professional Level Supply Chain Managers and Procurement Specialists |
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Construct Builders Ltd works very closely with a supplier called Solid Timber Co on house-building projects. They have a very close working relationship, sharing investment, setting pricing levels, and looking at sharing resources. The two companies also work closely together to set strategic directionsand explore new markets for long-term growth. There is no formal contract in place between the two companies. Using the relationship spectrum, what relationship does this scenario best describe?
The relationship reflects a partnership due to the strategic alignment, resource sharing, and focus on long-term growth, even without a formal contract. CIPS highlights that partnerships are based on trust and collaboration.
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
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.
Victoria runs a hotel and has recently had several security issues such as attempted robberies. She has decided that she needs to hire a security firm to ensure these issues don't continue. She has done some research and has found there are several local security firms who may be able to provide services to her hotel. However, she hasn't decided exactly what she would require the security firm to do. What should be Victoria's next steps?
Victoria should use a 'request for proposal' -- this allows the security firms to submit ideas on how best to serve the hotel. They might come up with some ideas that Victoria hasn't thought about and can price against their own ideas. As Victoria doesn't have a concrete specification, an ITT or RFQ are not appropriate. A PIN tells suppliers that a tender opportunity is coming up and is used in the Public Sector. A hotel is not a Public Sector organisation. See p.76 for more information on when to issue a Request for Proposal
Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?
Tim should do an audit. P.71 of the textbook says ''to ensure that a procurement department is achieving value for money, an audit should be undertaken''
When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?
Effective communication is essential in partnerships to ensure alignment on objectives, progress updates, and issue resolution. Regular communication builds trust and fosters collaboration, leading to successful outcomes.
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