Ultimate Guide to Prepare L4M6 with Accurate PDF Questions [Oct 24, 2025]
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CIPS L4M6 or CIPS Supplier Relationships Certification Exam is designed for procurement professionals who are responsible for managing supplier relationships. CIPS, which stands for Chartered Institute of Procurement and Supply, is a globally recognized professional body that offers certification exams to individuals who want to enhance their skills and knowledge in procurement and supply chain management. The CIPS L4M6 exam is one of the certification exams offered by CIPS and is targeted towards procurement professionals who want to develop their understanding and skills in managing supplier relationships.
NEW QUESTION # 104
Which of the following factors are considered when using the Kraljic Model to determine the kind of supply relationships and sourcing approaches for a category of items? Select TWO that apply.
- A. Supplier pre-qualification
- B. The type of tendering
- C. Key performance indicators
- D. The market structure
- E. The level of spend
Answer: D,E
Explanation:
Comprehensive and Detailed Explanation:
The Kraljic Matrix is a strategic tool used to segment the supply base and develop differentiated purchasing strategies based on two key dimensions:
* Profit Impact (Level of Spend):This refers to the financial significance of the item or service to the organization. High expenditure items have a greater impact on profitability and thus require more strategic sourcing approaches.
* Supply Risk (Market Structure):This pertains to the complexity and dynamics of the supply market, including factors like the number of suppliers, market competitiveness, and potential for supply disruptions. Understanding the market structure helps in assessing the risk associated with sourcing particular items.
By analyzing these two factors, organizations can categorize their purchases into four quadrants-non-critical, leverage, bottleneck, and strategic items-and tailor their sourcing strategies accordingly.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 105
Which of the following are considered 'wastes' which can be removed from a business? Select THREE.
- A. Stockout
- B. Over-processing
- C. Transportation
- D. Inventory
- E. Equity
Answer: B,C,D
Explanation:
The seven wastes (as defined by Taiichi Ohno) can be remembered as Tim Wood; transportation, inventory, motion, waiting, over-processing, over-production, defects. Some people add an S onto the end of Tim Wood to make Tim Woods (the s is for skills). In some modules of CIPS, they refer to 8 wastes and include skills, but in M6 they've only put the 7 on p.70.
NEW QUESTION # 106
A buyer should concentrate their efforts on managing the start and onboarding stage of a supplier relationship by ...
* Keeping all information and plans confidential from the supplier
* Pre-qualifying and assessing the supplier's capability
* Focusing solely on the buying organisation's goals
* Building a positive and trusting relationship
- A. 1 and 3
- B. 3 and 4
- C. 2 and 4
- D. 1 and 2
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
During the onboarding stage:
* Pre-qualifying and Assessing Capability:Ensures the supplier can meet the organization's requirements.
* Building Trusting Relationships:Establishing open communication and trust sets the foundation for a successful partnership.
Keeping information confidential (Option 1) and focusing solely on the buyer's goals (Option 3) can hinder collaboration.
Reference:
"Supplier Selection Process"- CIPS: Supplier Selection
NEW QUESTION # 107
A university based in Europe has an objective to increase the number of students coming from the United States of America (USA). The university appoints a consultant with specialist knowledge of the USA market and has issued them with a performance-based specification. Which of the following is a characteristic of a performance specification?
- A. It provides details of how the services must be carried out
- B. It encourages innovation from the supplier
- C. It enables the buyer to detail technical information
- D. It ensures the supplier must conform with the specification
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
A performance specification outlines the desired outcomes or results without prescribing the exact methods to achieve them. This approach allows suppliers the flexibility to use their expertise and creativity to meet the buyer's requirements, thereby encouraging innovation.
Reference:
CIPS Procurement Specifications Guide
NEW QUESTION # 108
Which of the following are considered value-adding primary activities?
* Inbound logistics
* Firm infrastructure
* Technology development
* Marketing and sales
- A. 2 and 4 only
- B. 1 and 2 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
In Michael Porter's Value Chain model, primary activities are those that are directly involved in the creation and delivery of a product or service. These include:
* Inbound Logistics:Activities related to receiving, storing, and distributing inputs internally.
* Operations:Transforming inputs into the final product.
* Outbound Logistics:Distributing the final product to customers.
* Marketing and Sales:Activities that inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.
* Service:Activities that maintain and enhance the product's value, such as customer support and repair services.
Firm infrastructure and technology development are considered support activities, as they assist the primary activities in helping the organization achieve its competitive advantage.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 109
An automotive company has hired Tom as the procurement manager. Tom is to manage a team of two people who have worked in the department for a number of years. Conflict exists between the two members of staff due to an overlap of responsibilities. Which of the following processes would be most appropriate for Tom to use to reduce this conflict?
- A. Tom could avoid mentioning the conflict and hope that it is resolved without action
- B. Tom could hire an additional member of staff to take on some of the duties
- C. Tom could arrange a meeting and set performance targets for each member
- D. Tom could restructure the team so both members do not have to work together
Answer: C
Explanation:
Arranging a meeting to clarify roles and setting performance targets provides clear expectations and encourages accountability. This aligns with CIPS guidelines on managing conflicts through constructive engagement.
NEW QUESTION # 110
Which of the following factors would you use to analyse the macro-environment? Select THREE.
- A. legislative
- B. philosophical
- C. social
- D. political
- E. cultural
Answer: A,C,D
Explanation:
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
NEW QUESTION # 111
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
* Negative leaders
* Silent opponents
* Supporters
* Promoters
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: C
Explanation:
In stakeholder management,Negative leadersandPromoterspossess high influence over others:
* Negative leaders: Individuals who oppose the project and can sway others against it due to their influence.
* Promoters: Advocates who support the project and can positively influence others.
Understanding these dynamics is crucial for effectively managing stakeholder resistance.
As highlighted in the CIPS study materials:
"Overcoming resistance- Promoters - They have a high influence on other stakeholders and support the project. They support and empower."
NEW QUESTION # 112
What are the relationship characteristics of a Partnership?
- A. Focus on price competitiveness
- B. An adversarial relationship
- C. Sharing ideas and risk
- D. Short-term focus and one-off transactions
Answer: C
Explanation:
Partnerships emphasize collaboration, shared risks, and mutual benefits. Unlike adversarial or transactional relationships, they focus on long-term goals and joint value creation.
NEW QUESTION # 113
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. Yes- so long as the manager kept the receipt
- B. Yes- the lollypop sticks have gone mouldy- this is unacceptable
- C. No- the manager cannot prove that the product is faulty
- D. No- as this was not the lollypop sticks intended purpose
Answer: D
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 # 114
Which of the following is not a stage in the relationship life-cycle?
- A. design the specification
- B. on-boarding
- C. qualification
- D. performance management
Answer: A
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 # 115
In public sector procurement, tenders are advertised with CPV codes, which provide a reference to describe the product or service being tendered. What does CPV stand for?
- A. Complete Procurement Vocabulary
- B. Common Procurement Vocabulary
- C. Condensed Procurement Vocabulary
- D. Clear Procurement Vocabulary
Answer: B
Explanation:
CPV stands for Common Procurement Vocabulary. This is explained briefly on p.72 but it doesn't really go into much detail as to what CPVs are or how they work. CPVs are a string of numbers which refer to an object that is being procured. For example the CPV for Fire Doors is 44221220. When a Tender gets advertised for Fire Doors, it will have this CPV code on, and any suppliers who provide fire doors will get a notification if they have this CPV code on their profile. It's basically a code that links suppliers with tender opportunities.
NEW QUESTION # 116
In public sector procurement, according to EU legislation, certain items must be procured via open-competition. What type of items are these?
- A. Items of high value
- B. Items of strategic importance
- C. Items that are produced by lots of suppliers
- D. Items that are imported from outside the EU
Answer: A
Explanation:
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
NEW QUESTION # 117
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 regulated by EU procurement regulations which prohibits this
- B. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
- C. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
- D. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
Answer: A
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 # 118
A confectionery company has a portfolio of different items to sell. Their most popular product is the chocolate brownie cake, but they have begun to trial sales of cereal bars, granola cereal, and chewing gum. As a high- quality producer in a competitive market, the company requires effective supplier sourcing arrangements.
Which ONE of the following product lines would be the most suitable for partnership sourcing?
- A. Chocolate brownie cake
- B. Granola cereal
- C. Chewing gum
- D. Cereal bars
Answer: A
Explanation:
Comprehensive and Detailed Explanation:
Partnership sourcing is most appropriate for products that are critical to the buyer's business, involve high spend, and are technically complex or require innovation. The chocolate brownie cake is the company's most popular product, indicating high sales volume and strategic importance. Establishing a partnership with suppliers for this product can lead to benefits such as improved quality, innovation, and supply chain efficiency.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 119
A restricted market is a market where there are only a small number of capable and competent suppliers.
Which of the following is not a reason for a marketplace to be restricted?
- A. Strong governmental regulation
- B. The product is easy to source elsewhere
- C. High barriers to entry
- D. Low levels of profitability
Answer: B
Explanation:
The correct answer is 'The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.
NEW QUESTION # 120
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.
- A. No defined end period
- B. No tender process
- C. Early supplier involvement
- D. Lower costs
- E. Supplier KPIs
Answer: A,B,C
Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5
NEW QUESTION # 121
Which of the following are advantages for the buyer of early supplier involvement with the buyer's product development team?
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 2 and 4 only
Answer: D
Explanation:
Early supplier involvement ensures the supplier understands process timelines and allows the buyer to leverage supplier capabilities. This improves product development efficiency and enhances outcomes.
NEW QUESTION # 122
Which of the following is a valid reason for ending a relationship with a supplier?
- A. the supplier has a new CEO who you don't like
- B. force majeur
- C. the supplier delivered one delivery late
- D. the contract has ended
Answer: D
Explanation:
CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is 'the contract has ended'.
NEW QUESTION # 123
Which of the following are valid strategies for dealing with conflict? Select THREE
- A. Collecting
- B. Competing
- C. Contesting
- D. Compromising
- E. Collaborating
Answer: B,D,E
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
NEW QUESTION # 124
Under which circumstances would a partnership sourcing approach be used?
- A. 2 and 4 only
- B. 1 and 3 only
- C. 1 and 2 only
- D. 1 and 4 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 # 125
Phone Maker Incorporated is a manufacturer of mobile phones. It is considering investing in a partnership with its supplier of batteries and circuit boards as it wishes to produce new models of its phone more regularly. What is the main driver for Phone Maker Incorporated?
- A. Cheaper costs
- B. Reduced product life-cycles
- C. Better quality products
- D. Changes in the marketplace
Answer: B
Explanation:
The correct answer is 'reduced product life-cycles'. In this example the reason for entering a partnership is to be able to produce new models of phones more quickly- this is likely because consumers are wanting to change mobile phones more often than they did in the past, so in order to keep up with demand, Phone Maker Incorporated need to produce more phones, more quickly. Drivers of Partnership Sourcing is a key topic in the exam - you can revise these by looking at p.127 in the Study Guide
NEW QUESTION # 126
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
- A. Your internal stakeholder requested the wrong items
- B. You ordered 10,000 items instead of 1,000
- C. One of the contracted parties has clearly failed to perform its duties
- D. There has been a serious breach of contract terms
- E. Your MRP system placed a replenishment order that you do not need
Answer: C,D
Explanation:
Legitimate reasons for contract termination under CIPS guidelines include failure to perform duties and serious breaches of contract terms. Ordering errors or changes in stakeholder needs are not valid termination grounds unless explicitly stated in the contract. This protects both parties from unjustified termination risks.
NEW QUESTION # 127
Which of the following is a stage in the relationship lifecycle?
- A. Graduation
- B. Measuring
- C. Testing
- D. Decline
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
The supplier relationship lifecycle comprises several stages that outline the progression of the buyer-supplier relationship. One of these stages isMeasuring, which involves assessing the supplier's performance against agreed-upon metrics and key performance indicators (KPIs). This stage is crucial for ensuring that the supplier meets the organization's expectations and for identifying areas for improvement.
Reference:
"The stages of the relationship life cycle include: Onboarding, Qualification, Segmentation and risk management, Performance management (Measuring), Development and innovation, and Phase-out."- CIPS L4M6 Study Guide
NEW QUESTION # 128
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