CIPS L4M6 Practice Exams
Last updated on Oct 21,2026- Exam Code: L4M6
- Exam Name: Supplier Relationships
- Certification Provider: CIPS
- Latest update: Oct 21,2026
A manufacturing company which produces showers struggles to get hold of a certain part called a mixer valve. It is impossible to make the showers without the mixer-valve and there is only one supplier in the market that produces them. The good news is they aren’t very expensive to buy.
What type of supplier is the supplier of mixer valves?
- A . leverage
- B . strategic
- C . routine
- D . bottleneck
D
Explanation:
This is a bottleneck supplier- refer to the Kraljic matrix on p.20; these types of supplier hold a monopoly in the marketplace and provide low-value items. 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
Which circumstances make a buyer more attractive to the supplier?
- A . Where the brand profile is high
- B . When the buyer negotiates longer credit terms
- C . Where the buyer exercises a stringent code of conduct
- D . When the buyer is very procedural in its systems
A, C
Explanation:
Buyers with a strong brand profile and adherence to ethical standards attract suppliers, as they provide market prestige and assurance of fair practices. This aligns with CIPS’s emphasis on ethical procurement.
In which procurement process is a PQQ not issued?
- A . Open
- B . Restricted
- C . Competitive Procedure with Negotiation
- D . Competitive Dialogue
A
Explanation:
Open Tender processes are a one-stage process which issues and ITT. It has no PQQ (selection) stage. P. 77
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
- A . economies of scale
- B . access to capital
- C . licences and permits
- D . health and safety
- E . ethical sourcing
A, B, C
Explanation:
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.
Which of the following behaviours are you likely to see in a Partnership relationship?
- A . Opportunistic behaviour and strong levels of trust
- B . Strong levels of trust and honest communication
- C . Honest communication and opportunistic behaviour
- D . Secrecy and honest communication
B
Explanation:
The correct answer is ‘Strong levels of trust and honest communication’. The questions on Partnership in the exam tend to be quite straightforward, but if you’re struggling with this see p. 148 for further details of behaviour in Partnerships.
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit.
Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?
- A . Improving timescales
- B . Quality enhancement
- C . Reduction of inventory
- D . Price management
D
Explanation:
Price management is crucial for low-cost retailers to maintain profitability. This includes negotiating better pricing, managing costs effectively, and ensuring competitive pricing for volume sales.
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
- A . The supplier suddenly increases prices
- B . The supplier made one late delivery
- C . Supply base rationalisation
- D . The supplier becomes insolvent
- E . The supplier has a change in senior management
B, E
Explanation:
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability.
How should the procurement manager include the CEO in the procurement activity?
- A . It is important to keep the CEO informed of all decisions that are made
- B . It is important to keep the CEO satisfied as he runs the business
- C . The CEO is a key player- so it is important he is involved early in the process
- D . The CEO is a key player- so should be given regular updates on progress
C
Explanation:
The correct answer is ‘The CEO is a key player- so it is important he is involved early in the process’. The CEO has high power and high interest which puts him in the top right-hand corner of Mendelow’s Stakeholder Matrix (p.81). CIPS says Key Players should be involved early in the procurement process (p.82).
Stephen Jones is assessing the relationships he has with his supplier base.
Which of the following would be drivers for Stephen to adopt a partnership relationship with a supplier?
- A . 1 and 2 only
- B . 2 and 3 only
- C . 1 and 4 only
- D . 2 and 4 only
D
Explanation:
High expenditure levels and the complexity of requirements justify partnership sourcing, as it allows for collaborative problem-solving, innovation, and cost-efficiency. CIPS emphasizes that partnerships are ideal when requirements are complex and require expertise from the supplier.
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 . Changes in the marketplace
- C . Better quality products
- D . Reduced product life-cycles
D
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 C you can revise these by looking at p.127 in the Study Guide