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
Question #31
Which one of the following would constitute a succession issue when terminating a relationship?
- A . Processing penalties
- B . Deletion of old specifications
- C . Continuity of supplies
- D . Payment of old invoices
Correct Answer: C
C
Explanation:
Ensuring continuity of supplies is critical during termination to avoid disruptions. Succession issues focus on maintaining essential operations while transitioning to new suppliers or arrangements.
C
Explanation:
Ensuring continuity of supplies is critical during termination to avoid disruptions. Succession issues focus on maintaining essential operations while transitioning to new suppliers or arrangements.
Question #32
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option.
Is this a good option?
- A . Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise
- B . Yes- mediation means the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues
- C . No- it would be better to solve the disagreement in-house
- D . No- mediation could have a negative impact on the companies’ reputation
Correct Answer: A
A
Explanation:
The correct answer is ‘Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise’. Be careful not to confuse mediation with arbitration C arbitration is when the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues. See p.112 for more information on solving disputes
A
Explanation:
The correct answer is ‘Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise’. Be careful not to confuse mediation with arbitration C arbitration is when the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues. See p.112 for more information on solving disputes
Question #33
In public sector procurement, according to EU legislation, certain items must be procured via open-competition.
What type of items are these?
- A . Items that are imported from outside the EU
- B . Items of high value
- C . Items of strategic importance
- D . Items that are produced by lots of suppliers
Correct Answer: B
B
Explanation:
The correct answer is ‘items of high value’. This links into the EU procurement principle of ‘Proportionality’ meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition.
What is considered ‘high value’ is decided by ‘thresholds’. These are amended every 2 years to account for inflation etc, but you don’t need to know what the thresholds are for this exam. P.75
B
Explanation:
The correct answer is ‘items of high value’. This links into the EU procurement principle of ‘Proportionality’ meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition.
What is considered ‘high value’ is decided by ‘thresholds’. These are amended every 2 years to account for inflation etc, but you don’t need to know what the thresholds are for this exam. P.75
Question #34
Early Supplier Involvement can be described as a collaborative relationship between a buyer and a supplier to develop a new project. Handfield’s model describes four different levels of supplier involvement ranging from none to ‘black box’ (which is when the design is primarily driven by the supplier.
What other level features on this model?
- A . Blue Box C when the buyer creates the product without input from the supplier
- B . Red Box- when the supplier provides legal advice to the buyer on areas such as copywrite
- C . White Box C when there is informal integration and the buyer consults with a supplier on a design
- D . Grey Box C when the involvement is buyer driven
Correct Answer: C
C
Explanation:
The Handfield ESI model is on p.98 and comprises of Black Box, Grey Box, White Box and None. Therefore Red and Blue can be automatically discounted. The correct answer is White Box as the definition given is correct. Grey Box is a formalised supplier integration; joint development activity between buyer and supplier. I have no idea why Handfield calls his system after coloured boxes- but it’s only briefly mentioned in the study guide and is not likely to be a big topic in the exam.
C
Explanation:
The Handfield ESI model is on p.98 and comprises of Black Box, Grey Box, White Box and None. Therefore Red and Blue can be automatically discounted. The correct answer is White Box as the definition given is correct. Grey Box is a formalised supplier integration; joint development activity between buyer and supplier. I have no idea why Handfield calls his system after coloured boxes- but it’s only briefly mentioned in the study guide and is not likely to be a big topic in the exam.
Question #35
What is value mapping?
- A . Analysing the costs that go into making a product
- B . Creating value through the elimination of waste and operational inefficiencies
- C . Segmenting suppliers based on the value they bring to the company
- D . Make vs Buy decision
Correct Answer: B
B
Explanation:
The definition of value mapping is given on p.69 this is; ‘a process in which value is created through the elimination of waste and operational inefficiencies’. It ties into JIT / Lean.
B
Explanation:
The definition of value mapping is given on p.69 this is; ‘a process in which value is created through the elimination of waste and operational inefficiencies’. It ties into JIT / Lean.
Question #36
Which of the following is not a type of tender process used in the Public Sector?
- A . Restricted
- B . Competitive Procedure with Negotiation
- C . Competitive Dialogue
- D . Unrestricted
Correct Answer: D
D
Explanation:
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
D
Explanation:
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
Question #37
The ABC Analysis, also known as the Pareto Analysis, is a technique that can be used by procurement to which purpose?
- A . supplier positioning
- B . cost analysis
- C . relationship spectrum
- D . cost engineering
Correct Answer: A
A
Explanation:
ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this
A
Explanation:
ABC / Pareto is a "Portfolio Analysis Technique to assess the relationships in a supply chain". This, along with the Kraljic Matrix are two examples of "Supplier Positioning Models". See chapter 2.1 p.17 for more details on this
Question #38
Which of the following are typical examples of partnering between companies? Select the TWO that apply.
- A . Sole trader
- B . Limited company
- C . Joint venture
- D . Strategic alliance
- E . Public limited company
Correct Answer: C, D
C, D
Explanation:
Joint ventures and strategic alliances are examples of partnerships as they involve collaboration between entities to achieve shared objectives. Sole traders and public limited companies describe organizational structures, not partnership types.
C, D
Explanation:
Joint ventures and strategic alliances are examples of partnerships as they involve collaboration between entities to achieve shared objectives. Sole traders and public limited companies describe organizational structures, not partnership types.
Question #39
A comprehensive approach to managing the termination of a contractual relationship would include …
- A . Attacking the personalities, not the problem
- B . Setting aside the value of existing work done by both parties
- C . Giving qualitative feedback only
- D . Setting remedies and compensation for contractual breaches
Correct Answer: D
D
Explanation:
Effective termination includes remedies and compensation to address any contractual breaches, ensuring fairness and compliance with legal and ethical obligations.
D
Explanation:
Effective termination includes remedies and compensation to address any contractual breaches, ensuring fairness and compliance with legal and ethical obligations.
Question #40
Which of the following is a valid reason for ending a relationship with a supplier?
- A . the supplier delivered one delivery late
- B . force majeur
- C . the contract has ended
- D . the supplier has a new CEO who you don’t like
Correct Answer: C
C
Explanation:
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’.
C
Explanation:
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’.