Pass Your L4M6 Dumps as PDF Updated on 2023 With 120 Questions [Q12-Q26]

4.3/5 - (3 votes)

Pass Your L4M6 Dumps as PDF Updated on 2023 With 120 Questions

CIPS L4M6 Real Exam Questions and Answers FREE

CIPS L4M6 Exam Syllabus Topics:

Topic	Details
Topic 1	Appraise portfolio analysis techniques to assess relationships in supply chains Analyse the concept of partnering and where it is a suitable approach
Topic 2	Compare the practical considerations of stakeholder management Compare the sources of added value that can be achieved through supply chain relationships
Topic 3	The link between relationships as a process and the achievement of added value outcomes Understand the dynamics of relationships in supply chains
Topic 4	Compare team management techniques to ensure positive stakeholder relationships Identify the processes for terminating stakeholder relationships
Topic 5	Lack of senior management support and trust Lack of commitment by one or both parties
Topic 6	Define the standards that potential partners will be expected to meet Identify the competitive forces that impact on relationships in supply chains
Topic 7	Understand processes and procedures for successful working with stakeholders Identify items potentially suitable for partnership sourcing

Q12. Which of the following would not affect rivalry in a marketplace? Select TWO.

industry growth or decline

exit barriers

switching costs

supply chain disruption

legislative changes

Legislative changes wouldn’t affect rivalry in a market as all suppliers would be equally as affected, the same with supply chain disruptions. Factors which do affect rivalry include; industry growth and decline, product differences, brand identity, switching costs, diversity of competitors and exit barriers. These are listed on p.41

Q13. A doctor’s surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company. What is the Manager’s main motivation for doing this?

The supplier is an expert in their field

This will result in economies of scale

This will free-up internal resources

This will result in cost-savings

The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don’t relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5

Q14. In an oliogopy market, what would a regulator do?

prevent price fixing and collusion

stop the market becoming a monopoly

ensure value for money for buyers

ensure health and safety standards

In an oliogopy, supplier power is strong. Sometimes regulators are required in the market to prevent the group of suppliers conspiring together to artificially increase prices. See p.40 for more information on Oligopy markets.

Q15. Which of the following is a valid reason for ending a relationship with a supplier?

the supplier delivered one delivery late

force majeur

the contract has ended

the supplier has a new CEO who you don’t like

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’.

Q16. Brian Air is a company that is trying to break into the air transport market. Which of the following could be barriers to entry for Brian Air? Select THREE

economies of scale

access to capital

licences and permits

health and safety

ethical sourcing

Barriers to entry are economies of scale (in the air travel industry you can’t just start off small and grow), access to capital (you need to already have a lot of money to buy airplanes) and licences and permits (you need to ensure you have the correct licences to fly planes). These are listed on p.41. Other barriers include; strong brand identity already dominant in the market, high switching costs for buyers, access to distribution networks and government policy.

Q17. In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?

Prior Information Notice

Procurement Information Number

Procurement Identification Number

Possibilities Identified Notice

A PIN is a ‘prior information notice’ – it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 “supplier identification- public sector” for more details.

Q18. Innovation is a key consideration when entering into a partnership. Is this statement true?

Yes- joint innovation projects are often a strong motivation for entering into a partnership

Yes- innovation is the only reason to enter into a partnership

No- the key consideration when entering a partnership is cost reduction

No- innovation is best achieved in a contractual relationship where KPIs can be monitored closely.

The correct answer is ‘Yes- joint innovation projects are often a strong motivation for entering into a partnership’. The other options are simply not true statements. 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 that relying on your knowledge of procurement. If you found this Question: easy – that’s a good sign for the exam.

Q19. ‘tail spend’ is a common category used in procurement and describes a category of items. What characteristics do theses items have?

High value, low volume

High value, high volume

Low value, high volume

Low value, low volume

Tail spend items are low value, high volume. P. 132

Q20. Mendelow’s Stakeholder Matrix categorises stakeholders into four groups and provides insight into how these stakeholders should be managed. What is a limitation to using this Matrix to categorise stakeholders?

Nowadays, Stakeholders fall into more than four categories

The Matrix doesn’t consider the power these stakeholders have

The Matrix doesn’t consider whether the stakeholder is for or against the activity

The categories are hard to remember

The correct answer is ‘The Matrix doesn’t consider whether the stakeholder is for or against the activity’. For a list of other limitations of using Mendelow’s Stakeholder Matrix see p.82

Q21. Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

Manufacturing of all bicycle parts

Manufacturing of bells only

Facilities Management

Cleaning

They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their ‘core’ business so they should retain this in-house

Q22. One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:

Measurable, achievable and time-bound

Relatable, specific and measurable

Time bound, difficult and relevant

Significant, measurable and achievable

The correct answer is Measurable, achievable and time-bound. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.

Q23. Which of the following relationship types would you consider using for a Main Contractor on a building construction project, who will be responsible for co-ordinating the activities of other suppliers?

partnership

transactional

closer tactical

co-destiny

in tiered supply chains, a closer-tactical relationship could be used between a buyer and a supplier who will be responsible for co-ordinating the activities of other suppliers (p.8 of the textbook).

Q24. Which of the following is not a type of tender process used in the Public Sector?

Restricted

Competitive Procedure with Negotiation

Competitive Dialogue

Unrestricted

Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77

Q25. In a partnership who is responsible for decision making?

The project steering committee

Both the supplier and the buyer

The buyer

The supplier

The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc. See p.152

Q26. 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?

Using several suppliers instead of one

Batch ordering

Sharing up-to-date information

Issuing POs electronically.

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.

Loading …

Pass CIPS L4M6 Exam Info and Free Practice Test: https://www.actualpdf.com/L4M6_exam-dumps.html

CIPS L4M6 Exam Syllabus Topics:

Leave a Reply Cancel reply