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
What are service credits?
- A . A type of payment where goods are delivered before payment is made
- B . A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
- C . When a buyer makes a purchase on credit
- D . A clause in a contract that allows for additional bonus payments for meeting KPIs
B
Explanation:
The correct answer is “A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance”. A definition is provided on p.113 and states “If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier”
A local council requires facilities management services for ten schools based in their region. This service is a high-spend, high-risk, critical contract.
Which sourcing approach would be the most appropriate?
- A . Request for quotation
- B . Competitive tendering
- C . Statement of source requirements
- D . Direct negotiation
B
Explanation:
Competitive tendering is the most suitable approach for high-risk, high-value contracts as it ensures transparency, fairness, and the selection of the most capable supplier based on predefined criteria.
A law firm is ending an agreement with a client they have represented for many years.
What is the most important legal consideration to be taken before terminating?
- A . Employee rights
- B . Confidentiality
- C . Finance
- D . Security
B
Explanation:
Confidentiality is critical in professional relationships, especially for law firms, as they handle sensitive client information. Ensuring that all legal obligations to protect this information are met aligns with ethical and legal best practices.
A partnership was created between a company and one of its local suppliers when the managing directors of each company met and thought partnering could be a good idea. No other departments were included in the discussions. The partnership has been in place for over a year, but neither of the companies has achieved any additional benefits. The company has been unable to offer any increased business to the supplier, and the supplier has been unable to improve on the quality of its products. The partnership is going to be terminated.
What is a possible main reason for the failure of
the partnership?
- A . Poor planning
- B . Market changes
- C . Distance barrier
- D . Cultural differences
A
Explanation:
Partnerships require careful planning, including alignment of goals, stakeholder involvement, and clear expectations. Poor planning leads to unmet objectives and lack of value generation, as highlighted by CIPS.
Rachel and Jacky work in the procurement department of Foddy Foods Ltd. They have been told by
their CEO to build better relationships with strategic suppliers as this will create value for money for
the company. In what ways can value for money be achieved by building strong relationships with
suppliers? Select TWO.
- A . Better payment terms
- B . Reduction of waste
- C . Innovation developed as part of collaborative projects
- D . Reducing costs
B, C
Explanation:
Supplier relationships can result in value for money in the reduction of waste and in innovation developed as part of collaborative projects. Remember that in CIPS waste doesn’t necessarily mean physical waste (as in stuff you don’t want any more). There are 7 types of waste including waiting, inventory, transportation etc. So when you develop a relationship with a supplier, this can reduce waste (e.g. you may be able to get deliveries quicker by integrating your ordering system with the supplier’s, or you might reduce transportation by agreeing a Consignment stock). Having a good relationship with a supplier isn’t necessarily going to get you a reduction in cost or better payment terms. See p.70 for more details on this- there’s a short list of ways in which good supplier relationships can bring value for money to a business.
According to Mendelow, there are four ways stakeholders can be managed, depending on the amount of power they have, and how interested they are in your project.
What are these four categories?
- A . Keep satisfied, keep informed, minimal effort, no effort
- B . Manage closely, manage loosely, keep satisfied, keep informed
- C . Minimal effort, manage closely, keep informed, keep satisfied
- D . Keep informed, keep happy, keep satisfied, keep notified
C
Explanation:
The four categories are; Minimal effort, manage closely, keep informed, keep satisfied. You can see the Matrix on p.81. An easy way to remember this is there are 2 Ms and 2 Keeps. And these sit on opposite sides of the matrix.
Jenny is a procurement manager who works in the public sector. She has been charged with organising a tender to source new Xray machines for a hospital and to ensure that they receive ‘value for money’.
Which of the following should Jenny consider when drafting her ITT?
- A . Price only
- B . Equity
- C . Whole life costs
- D . Availability
C
Explanation:
Jenny should consider whole life costing. Ensuring value for money means considering a combination of price and quality throughout the lifetime of the product. See p.65 for more on ‘Achieving Value for Money’
Which of the following would you use to qualify new suppliers? Select THREE.
- A . competency
- B . cash
- C . culture
- D . cooperation
- E . coordination
A, B, C
Explanation:
This is based on a real exam question- it’s looking to see if you can remember Carter’s 10 Cs. These are; cash, cost, consistency, culture, clean, communication, competency, capacity, commitment and control. (p.12 in the text book)
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
- A . 2 and 3 only
- B . 1 and 4 only
- C . 1 and 2 only
- D . 3 and 4 only
B
Explanation:
Negative leaders and promoters hold the most influence. Negative leaders can sway opposition, while promoters can actively advocate for project success. Managing these stakeholders effectively is crucial in procurement projects.
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?
- A . partnership
- B . transactional
- C . closer tactical
- D . co-destiny
C
Explanation:
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).