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
Achieving value for money can often be described as the three Es? What are these?
- A . Ethics, Environment, Economy
- B . Economy, Efficiency, Environment
- C . Efficiency, Economy, Ethics
- D . Effectiveness, Efficiency, Economy
D
Explanation:
The three Es are; Effectiveness, Efficiency and Economy. Sometimes a 4th E is added which is Equity (but this is mainly for the public sector).
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.
- A . Request for Information
- B . Request for Quotation
- C . Pre-Qualification Questionnaire
- D . Invitation to Tender
A, C
Explanation:
Request for Information and Pre-Qualification Questionnaire can be used for short-listing suppliers. Request for Quotation is used when the only variable is price and you would like suppliers to submit a price for you. Invitation to Tender would be the next stage after RFI / PPQ- this is sent out to those suppliers who have passed selection, and details the second stage of the competition. See p.75 for more details.
Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph’s company spends an additional 25% on moving and installing the cable.
In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?
- A . Single-sourced
- B . Closer tactical
- C . Transactional
- D . Partnership
D
Explanation:
A partnership relationship allows Joseph to collaborate with suppliers on cost savings in manufacturing, logistics, and installation, providing a competitive edge over rival companies.
Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.
- A . Open Procedure
- B . Mini-Competition Procedure
- C . Restricted Procedure
- D . Two-stage Procedure
- E . Competitive Bidding Procedure
C, D
Explanation:
The Restricted and Two-stage procedures involve a PQQ stage to shortlist suppliers before issuing an ITT. This approach is common for contracts requiring stringent supplier qualifications.
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it. He doesn’t think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?
- A . Cost Analysis
- B . Make vs Buy Analysis
- C . Force Field Analysis
- D . Value Engineering Analysis
C
Explanation:
Richie should do a Force Field Analysis C this is explained on p.86 and is an idea of Kurt Lewin C it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn’t go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin’s Force Field Analysis.
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
- A . ITT
- B . PCR 2015
- C . OJEU
- D . TUPE
D
Explanation:
The correct answer is TUPE: Transfer of Undertakings (Protection of Employment). Details on TUPE can be found on p.115
Which of the following is not a stage in the relationship life-cycle?
- A . on-boarding
- B . qualification
- C . performance management
- D . design the specification
D
Explanation:
Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification, segmentation and risk management, performance management, development and innovation, phase out. P.13
Which of the following relationship types are characterised by low levels of trust? Select TWO options
- A . Adversarial (Correct)
- B . Arm’s Length
- C . Outsourced
- D . Single- Sourced
- E . Partnership
A, B
Explanation:
Adversarial and Arm’s Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum
Price fluctuations can affect profitability. Is this statement correct?
- A . Yes, if the product’s costs increase and the price does not
- B . No, only decisions made by the chief executive affect the price
- C . No, price is not related to profitability
- D . Yes, as sales may drop if the product is price inelastic
A
Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments.
Understanding cost-price relationships is key to managing profitability in procurement.
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 . Deliveries in full and on time
- B . Information sharing
- C . Trust
- D . Cost savings
- E . Early supplier involvement
B, 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.