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CIPS L4M6 exam is a rigorous and comprehensive certification program that provides procurement professionals with the knowledge and skills they need to succeed in managing supplier relationships. Whether you are just starting out in your procurement career or looking to take your skills to the next level, L4M6 Exam is an excellent choice for anyone looking to enhance their expertise and advance their career.
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CIPS Supplier Relationships Sample Questions (Q22-Q27):
NEW QUESTION # 22
Kyle Grant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?
Answer: A
Explanation:
Obtaining multiple quotations ensures value for money by comparing suppliers based on cost, quality, and other criteria. It promotes competitive pricing and informed decision-making.
NEW QUESTION # 23
The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?
Answer: D
Explanation:
The logistics risk can be reduced by 'Sharing up-to-date information'. If the Pub tells the supplier when it's running low, they can then time the deliveries more accurately.
P. 136. A lot of the questions on the 'Partnerships' chapters of the book are common-sense questions like this. It involves reading the question and using logic, rather than relying on your knowledge of procurement. If you found this question easy - that's a good sign for the exam.
NEW QUESTION # 24
A partnership relationship can be described as any relationship between a buyer and supplier where there is a good level of communication and both parties are happy with each other's performance. Is this statement TRUE?
Answer: C
Explanation:
The correct answer is 'No- good levels of communication can exist in other types of relationships'. The study guide makes a point that not all good buyer: supplier relationships are partnerships. In fact 70% on supplier relationships will not be partnerships (according to Lambert who is quoted on p.131)
NEW QUESTION # 25
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE
Answer: A,C,E
Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76
NEW QUESTION # 26
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?
Answer: C
Explanation:
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
NEW QUESTION # 27
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