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 NOT one of the four key principles of procurement in the EU?
- A . Transparency
- B . Value for Money
- C . Non-Discrimination
- D . Proportionality
B
Explanation:
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco’s goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?
- A . Do frequent appraisals on the supplier
- B . Conduct regular audits
- C . Ensure there is a damages clause in the contract
- D . Threaten the supplier with termination if he underperforms
B
Explanation:
The correct answer is ‘Conduct regular audits’. This is explained on p.153. You wouldn’t do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn’t good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.
Which of the following are valid strategies for dealing with conflict? Select THREE
- A . Competing
- B . Collecting
- C . Contesting
- D . Compromising
- E . Collaborating
A, D, E
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
‘tail spend’ is a common category used in procurement and describes a category of items.
What characteristics do theses items have?
- A . High value, low volume
- B . High value, high volume
- C . Low value, high volume
- D . Low value, low volume
C
Explanation:
Tail spend items are low value, high volume. P. 132
Lee is a procurement manager at Real Pirates Ltd and he has a contract with Peg Leg Industries for the supply of fake, wooden legs for his team of Pirates. Real Pirates Ltd have been working with Peg Leg Industries for almost 10 years but recently Lee has discovered he will need to terminate the contract due to ‘Contract Frustration’.
What could be the reason for this?
- A . The supplier has committed a material breach
- B . An unexpected incident has occurred beyond anyone’s control
- C . The supplier has become insolvent
- D . The supplier has leaked confidential information about Real Pirates Ltd to a competitor
B
Explanation:
The correct answer is ‘An unexpected incident has occurred beyond anyone’s control’. A good example of this would be the Covid-19 pandemic- neither the buyer nor supplier could have predicted this, and if this means that the contract can’t be completed C then the contract can be terminated (in the UK at least). A way to avoid this would be to include a Force Majeur clause listing possible circumstances that could occur. When there’s a Force Majeur clause, these eventualities are now classed as foreseen rather than unforeseen. See p.108
A textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers.
Which commercial relationship type would be most effective for the buyer to choose?
- A . Adversarial
- B . Closer tactical
- C . Outsourcing
- D . Partnership
A
Explanation:
For low-value, non-recurring items with many suppliers, an adversarial relationship focusing on competitive pricing and minimal engagement is most appropriate. Partnerships are unnecessary for such transactions.
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyze its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result.
Which of the following STEEPLED factors is most likely to have the greatest effect?
- A . Sociocultural
- B . Technological
- C . Economic
- D . Ethical
B
Explanation:
Technological factors play a pivotal role in IT equipment supply chains. Advancements, obsolescence, and innovation significantly affect production, cost, and competitiveness, making it a primary focus in supply chain development.
The use of technical jargon can result in what?
- A . Misunderstanding
- B . Lack of trust
- C . Increased price
- D . Lack of transparency
A
Explanation:
Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?
- A . They may gain an increased volume of business
- B . There is more flexibility when selling the product
- C . The Intellectual Property Rights of the buyer become yours
- D . They no longer have to try as hard to win business.
A
Explanation:
The correct answer is ‘They may gain an increased volume of business’. The other options are just not true. See p.130 for advantages and disadvantages of partnerships from both the buyer and supplier’s perspective. This is a hot topic for the exam.
A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends.
What agreement should the app developer aim to achieve?
- A . Quality-based relationship
- B . Traditional contracting relationship
- C . Partnering relationship
- D . Cost-based relationship
C
Explanation:
A partnering relationship fosters collaboration and ensures the fitness expert is actively involved in developing insights, which is crucial for innovation and mutual success in a knowledge-sharing environment.