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To prepare for the CIPS L4M6 certification exam, candidates are encouraged to take relevant training courses and study materials. L4M6 exam consists of multiple-choice questions that assess the candidate's understanding of the key concepts and principles of supplier relationships. L4M6 exam is challenging and requires a high level of knowledge and understanding of procurement and supply chain management concepts. Passing the CIPS L4M6 Certification Exam demonstrates that the candidate has the necessary skills and knowledge to manage supplier relationships effectively and efficiently.
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CIPS Supplier Relationships Sample Questions (Q225-Q230):
NEW QUESTION # 225
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?
- A. No, it is an example of a less time-intensive partnership
- B. No, as there is a short-term focus on the relationship
- C. Yes, as this is an example of a target costing approach
- D. Yes, because it includes elements of joint product development
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
The described relationship includes:
* Joint Product Development:Collaborative involvement in strategic projects indicates a deep partnership.
* Integrated Systems:JIT delivery systems require synchronized operations, reflecting significant integration.
These elements are hallmarks of a significant integration partnership.
Reference:
"Strategic Supply Chain Partnership"-ResearchGate: Strategic Supply Chain Partnership
NEW QUESTION # 226
Which of the following occurs in the growth stage of the relationship lifecycle?
- A. Achieving the aims of the relationship
- B. Managing emerging issues and conflicts
- C. Learning lessons for the future
- D. Negotiating each party's terms and conditions
Answer: B
Explanation:
CIPS explains that supplier relationships move through a lifecycle typically consisting of initiation, growth, maturity, and exit/renewal.
During the growth stage, the relationship is developing and expanding. As interaction increases, it is common for:
* Operational challenges to arise
* Differences in expectations to surface
* Conflicts to emerge that must be managed collaboratively
Negotiating terms occurs at the initiation stage, achieving aims occurs during maturity, and learning lessons is associated with exit or renewal.
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Relationship lifecycle management
* CIPS L4M6 Study Guide - Stages of supplier relationships
NEW QUESTION # 227
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?
- A. This allows staff to focus on other areas
- B. This will be more expensive than providing the service in house
- C. There is dependency on the supplier, which increases risk
- D. The supplier will not perform as well as an internal team
Answer: C
Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'
NEW QUESTION # 228
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. Bottleneck
- B. routine
- C. strategic
- D. leverage
Answer: B
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 # 229
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. Deliveries in full and on time
- C. Information sharing
- D. Early supplier involvement
- E. Cost savings
Answer: A,C
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 # 230
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