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
Danny is procuring a new IT software, which he doesn’t know much about. He has done a bit of
research on the internet but is still unsure how much he can expect to pay.
What should be Danny’s next step?
- A . Issue a RFI
- B . Issue a RFQ
- C . Issue an ITT
- D . Issue an OJEU
A
Explanation:
Danny should issue a RFI (Request for Information). His next step would be to find out more about the products available by asking suppliers for information- this will help him put a spec together before he goes out to tender. The other options mean; RFQ – request for quotation- when you ask suppliers to submit a price. ITT- Invitation to tender C a document you send out to suppliers which details all the information about the tender (this usually involves both price and quality components of assessment). OJEU- Official Journal of the European Union- where tenders for the Public Sector are published. For more info on RFI see p.74
A partnership between a software development company and a software supplier has recently been created.
In order for the partnership to be successful, what is a critical action to take in the early stages of their relationship?
- A . Define the standards both parties are expected to meet
- B . Look at costing models
- C . Promote the new partnership
- D . Complete audits on the performance of both parties
A
Explanation:
Defining standards ensures clear expectations and provides a foundation for accountability and alignment, which are critical for the success of any partnership.
An automotive company has hired Tom as the procurement manager. Tom is to manage a team of two people who have worked in the department for a number of years. Conflict exists between the two members of staff due to an overlap of responsibilities.
Which of the following processes would be most appropriate for Tom to use to reduce this conflict?
- A . Tom could avoid mentioning the conflict and hope that it is resolved without action
- B . Tom could hire an additional member of staff to take on some of the duties
- C . Tom could restructure the team so both members do not have to work together
- D . Tom could arrange a meeting and set performance targets for each member
D
Explanation:
Arranging a meeting to clarify roles and setting performance targets provides clear expectations and encourages accountability. This aligns with CIPS guidelines on managing conflicts through constructive engagement.
Kyle Grant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000.
What is the primary aim of this policy?
- A . To deliver an agile process
- B . To ensure value for money is achieved
- C . To allow procurement to select the lowest price
- D . To enable a reduction in competition
B
Explanation:
Obtaining multiple quotations ensures value for money by comparing suppliers based on cost, quality, and other criteria. It promotes competitive pricing and informed decision-making.
In the 1990s a company spent a lot of time and money developing a device that you could carry around that could play CDs. The product spent a long time in development but when it was released the sales figures were very disappointing. This was in part due to the fact another product was released at a similar time which had much more developed technology and could play music without the cumbersome size of a portable CD player.
Which of the following did the company not consider when developing the product?
- A . threat of substitution
- B . threat of new entrant
- C . rivalry among existing competitors
- D . power of buyers
A
Explanation:
The portable CD player has been replaced with a substitute product. This threat wasn’t considered by the company and this resulted in poor sales. There are many questions in the exam on Porter’s 5 Forces – see p. 39
Victoria runs a hotel and has recently had several security issues such as attempted robberies. She has decided that she needs to hire a security firm to ensure these issues don’t continue. She has done some research and has found there are several local security firms who may be able to provide services to her hotel. However, she hasn’t decided exactly what she would require the security firm to do.
What should be Victoria’s next steps?
- A . Issue a Request for Proposal
- B . Issue an Invitation to Tender
- C . Issue a Request for Quotation
- D . Issue a Prior Information Notice
A
Explanation:
Victoria should use a ‘request for proposal’ C this allows the security firms to submit ideas on how best to serve the hotel. They might come up with some ideas that Victoria hasn’t thought about and can price against their own ideas. As Victoria doesn’t have a concrete specification, an ITT or RFQ are not appropriate. A PIN tells suppliers that a tender opportunity is coming up and is used in the Public Sector. A hotel is not a Public Sector organisation. See p.76 for more information on when to issue a Request for Proposal
In public sector procurement, tenders are advertised with CPV codes, which provide a reference to describe the product or service being tendered.
What does CPV stand for?
- A . Condensed Procurement Vocabulary
- B . Common Procurement Vocabulary
- C . Complete Procurement Vocabulary
- D . Clear Procurement Vocabulary
B
Explanation:
CPV stands for Common Procurement Vocabulary. This is explained briefly on p.72 but it doesn’t really go into much detail as to what CPVs are or how they work. CPVs are a string of numbers which refer to an object that is being procured. For example the CPV for Fire Doors is 44221220. When a Tender gets advertised for Fire Doors, it will have this CPV code on, and any suppliers who provide fire doors will get a notification if they have this CPV code on their profile. It’s basically a code that links suppliers with tender opportunities.
Which of the following relationship types require the most investment from the buyer?
- A . partnership
- B . strategic alliance
- C . single source
- D . adversarial
A
Explanation:
Partnerships require the most investment out of those listed. The only relationship type that requires more investment than Partnerships is Co-Destiny. See p.9 for more information on this
The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider.
In what ways could the logistics risk be reduced?
- A . Using several suppliers instead of one
- B . Batch ordering
- C . Sharing up-to-date information
- D . Issuing POs electronically.
C
Explanation:
The logistics risk can be reduced by ‘Sharing up-to-date information’. If the Pub tells the supplier when it’s running low, they can then time the deliveries more accurately. P. 136. A lot of the questions on the ‘Partnerships’ chapters of the book are common-sense questions like this. It involves reading the question and using logic, rather than relying on your knowledge of procurement. If you found this question easy C that’s a good sign for the exam.
Beyond Say is a manufacturer of diamond rings. It sources a lot of different parts to create its products including diamonds, gold, cardboard boxes for the rings to go in, as well as stationary and copier paper for the offices. Although it doesn’t buy many diamonds, these represent a large part of Beyond Say’s spend.
Which category of spend would diamonds represent?
- A . Option
- B . Option
- C . Option
- D . It isn’t possible to tell
A
Explanation:
This is category ‘A’ spend in the ABC model – they represent a large value and a small number of purchases / suppliers. See p.17 for more information on the ABC Analysis