CIPS L4M6 Practice Exams
Last updated on Oct 22,2026- Exam Code: L4M6
- Exam Name: Supplier Relationships
- Certification Provider: CIPS
- Latest update: Oct 22,2026
Rivalry between suppliers is more likely to be intense in which of the following situations?
- A . 1 and 2 only
- B . 2 and 4 only
- C . 1 and 3 only
- D . 1 and 4 only
B
Explanation:
Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter’s Five Forces model.
Which of the following are advantages for the buyer of entering into a partnership? Select TWO.
- A . They are likely to be able to gain price stability
- B . There may be greater continuity of supply
- C . They will gain an increased volume of business
- D . The supplier may become complacent
A, B
Explanation:
The correct answers are; They are likely to be able to gain price stability and There may be greater continuity of supply. The other options are an advantage for the supplier rather than the buyer (They will gain an increased volume of business) and a disadvantage of entering into a partnership (The supplier may become complacent). As you may have guessed from these questions C Partnerships come up a LOT in the exam. See p.130 for info on pros and cons of partnerships.
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product.
What type of relationship should ABC seek to develop with their supplier?
- A . outsource
- B . strategic alliance
- C . transactional
- D . arms length
B
Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember – strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV
codes on the tender.
What purpose would this serve?
- A . To ensure suppliers know the deadline for tender submission
- B . To ensure suppliers can find the opportunity
- C . To ensure more suppliers bid for the tender
- D . To ensure only qualified suppliers bid for the tender
B
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don’t worry if you don’t know much about them. So long as you know the above, you’ll be fine.
You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers.
What competitive force is at play?
- A . threat of substitution
- B . threat of new entrant
- C . supplier power
- D . buyer power
B
Explanation:
This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter’s 5 Forces – see p. 39
A large construction group has a critical contract with a brick supplier. This represents high-value spend, and the contract has a five-year duration.
What type of commercial relationship would be the most appropriate?
- A . Partnership
- B . Transactional
- C . Closer Tactical
- D . Outsourcing
A
Explanation:
Given the criticality and high value of the contract, a partnership is most suitable. This allows for long-term collaboration, mutual investment, and risk sharing to achieve strategic goals.
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
- A . yes- it is important to develop all relationships
- B . yes- this will improve efficiencies for the buyer
- C . no- supplier development should only be done with strategic suppliers
- D . no- supplier development should only be done with tactical suppliers
C
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE
- A . Full pricing information
- B . Liquidity Ratio
- C . Risk Assessments
- D . Method Statements
- E . Gearing Ratio
A, C, D
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
Which of the following are Intellectual Property Rights that you would you encounter in procurement
and supply contracts? Select THREE.
- A . Method Statements
- B . Risk Assessments
- C . Patents
- D . Copywrite
- E . Trademark
C, D, E
Explanation:
Intellectual Property Rights include; Patents, Copywrite, Trademarks and Trade Secrets. P.114
What is a disadvantage of including qualitative KPIs into a contract?
- A . They can lead to poor supplier performance
- B . They pull focus from the more important quantitative KPIs
- C . They are hard to measure
- D . They make the buyer seem weak
C
Explanation:
The correct answer is ‘They are hard to measure’ p.103