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
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A . The protection of intellectual property rights
- B . The marketplace has become more volatile
- C . Working together will create synergies
- D . The need to improve performance to satisfy the end customer To increase production costs and lead-times
B, C, D
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won’t protect intellectual property rights- in fact that’s one of the big risks of entering into a partnership. Partnerships won’t increase costs and lead-times, they’re likely to decrease them.
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?
- A . No- partnerships should have end dates so both parties have a way out if things don’t work out
- B . No- partnerships have end dates as they are contractual relationships
- C . Yes-partnerships do not have end dates because they involve significant investment
- D . Yes- partnerships do not have end dates because there is never a contract involved
C
Explanation:
The correct answer is ‘Yes-partnerships do not have end dates because they involve significant investment’. This is explained on p.126. Partnerships can involve contracts C so the other ‘yes’ answer is incorrect.
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?
- A . Yes- IPR should always remain with the buyer- this will protect those rights
- B . Yes- IPR is a valid concern for both parties but will survive the termination of the agreement
- C . No- a separate legal agreement should be created to cover IPR
- D . No- a contract is not necessary if it is a partnership.
B
Explanation:
The correct answer is ‘Yes- IPR is a valid concern for both parties but will survive the termination of the agreement’ (p.112). See the section on ‘Legal considerations’ in chapter 2.4
Lion Manufacturing is about to enter into a partnership with Penguin Logistics, who will provide delivery to and from Lion Manufacturing’s factories and warehouses.
In this relationship, what type of negotiation strategy should Lion manufacturing use?
- A . win: win
- B . win: lose with the supplier winning
- C . lose: lose
- D . win: lose with the buyer winning
A
Explanation:
partnerships are always win: win p.7
Value for money in the private sector is concerned with what?
- A . Getting the best price possible
- B . Shareholder profit and business benefit
- C . Ensuring taxpayers’ money is spent wisely
- D . Getting the best quality possible
B
Explanation:
Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers’ money is spent wisely. Value for money is a mixture of price and quality.
The Kraljic Model is most useful for which aspect of procurement?
- A . category management
- B . cost analysis
- C . risk management
- D . cost reduction
A
Explanation:
The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.
A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products.
What is the reason for the failure of this?
- A . Poor communication
- B . Miscommunication
- C . Distortion of the facts
- D . Communication overload
A
Explanation:
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.
In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity.
What does PIN stand for?
- A . Prior Information Notice
- B . Procurement Information Number
- C . Procurement Identification Number
- D . Possibilities Identified Notice
A
Explanation:
A PIN is a ‘prior information notice’ C it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 “supplier identification- public sector” for more details.
Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time.
According to the Kraljic matrix, what type of suppliers provides stationary to Barry?
- A . leverage
- B . strategic
- C . routine
- D . Bottleneck
C
Explanation:
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business’ operations (a late delivery of pens isn’t going to stop the company making its biscuits). 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 (see p.20)
Hungry Sandwich Co. produces over 5,000 freshly made sandwiches on-site every day. The main ingredient that Hungry Sandwich Co. buys is bread. It is the item they spend the most money on, and they have a long-term partnership agreement with a local bakery to manufacture and supply fresh bread every morning. Using a supplier positioning matrix, which is the appropriate category for bread for Hungry Sandwich Co.?
- A . Non-critical
- B . Bottleneck
- C . Abundant
- D . Strategic
D
Explanation:
Bread is a strategic item due to its high spend and critical role in daily operations. A partnership approach ensures consistent quality and reliability, aligning with strategic supplier management principles.