L4M6 Certification Exam Dumps Questions in here [Mar-2026]
Updated L4M6 Exam Practice Test Questions
The Chartered Institute of Procurement and Supply (CIPS) is a globally recognized professional body for procurement and supply chain management. The CIPS L4M6 exam, also known as the CIPS Supplier Relationships module, is a key component of the CIPS Level 4 Diploma in Procurement and Supply. This module is designed to equip procurement professionals with the necessary skills and knowledge to effectively manage supplier relationships and drive value for their organizations.
NEW QUESTION # 139
A local government procurement team is undertaking a full review of their current internal working processes.
The team of buyers currently have a partnership-style relationship with their routine suppliers. Is this the best relationship style to use?
- A. No, as these are critical items to the buying organization
- B. Yes, as they present a great deal of risk to the organization
- C. No, as there are many suppliers available
- D. Yes, as these are low-value items
Answer: C
Explanation:
Routine suppliers typically supply low-value, low-risk items. Maintaining partnerships in such cases is inefficient since alternative suppliers are readily available. Adopting a transactional or adversarial relationship would be more appropriate.
NEW QUESTION # 140
Which of the following options are legitimate reasons for terminating a contract? Select TWO that apply.
- A. There has been a serious breach of contract terms
- B. You ordered 10,000 items instead of 1,000
- C. Your MRP system placed a replenishment order that you do not need
- D. Your internal stakeholder requested the wrong items
- E. One of the contracted parties has clearly failed to perform its duties
Answer: A,E
Explanation:
Legitimate reasons for contract termination under CIPS guidelines include failure to perform duties and serious breaches of contract terms. Ordering errors or changes in stakeholder needs are not valid termination grounds unless explicitly stated in the contract. This protects both parties from unjustified termination risks.
NEW QUESTION # 141
Which of the following would be benefits of partnership sourcing? Select TWO that apply.
- A. Reduction in costs
- B. Continuity of supply
- C. Reduction in inflation
- D. No need for contracts
- E. Reduction in stakeholder numbers
Answer: A,B
Explanation:
Partnership sourcing improves efficiency through cost reduction and ensures continuity of supply by fostering long-term, collaborative relationships with key suppliers, as highlighted in CIPS guidelines.
NEW QUESTION # 142
In the relationship spectrum, which of the following describes the most competitive relationship?
- A. Transactional
- B. Outsourcing
- C. Single sourced
- D. Adversarial
Answer: D
Explanation:
An adversarial relationship is highly competitive, often win:lose, focusing on cost and negotiation power rather than collaboration. It contrasts with partnerships or strategic alliances.
NEW QUESTION # 143
Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.
- A. Restricted Procedure
- B. Open Procedure
- C. Mini-Competition Procedure
- D. Competitive Bidding Procedure
- E. Two-stage Procedure
Answer: A,E
Explanation:
The Restricted and Two-stage procedures involve a PQQ stage to shortlist suppliers before issuing an ITT.
This approach is common for contracts requiring stringent supplier qualifications.
NEW QUESTION # 144
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 enable a reduction in competition
- C. To allow procurement to select the lowest price
- D. To ensure value for money is achieved
Answer: D
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.
NEW QUESTION # 145
Which of the following is characteristic of an adversarial relationship?
- A. The communication is always poor
- B. The price is more important than the quality of the product
- C. They are only used for one-off purchases
- D. The outcome of the deal is more important than the long term relationship
Answer: D
Explanation:
In an adversarial relationship "the outcome of the deal... is more important than maintaining the relationship over a long-term period" p.7. They can be characterised by poor communication and can be used for one-off purchases but be careful for words in answers such as 'only' and 'always', as these can be misleading; adversarial relationships aren't always for one-off purchases, and communication isn't always poor. The other answer is incorrect (price is more important) because it doesn't describe the relationship, which is what the question asked.
NEW QUESTION # 146
Which of the following is a way of improving supplier commitment and loyalty?
- A. Providing guaranteed order levels
- B. Imposing excessive performance penalties
- C. Have a stand-off approach to the relationship
- D. Over-promising the supplier future work
Answer: A
Explanation:
Improving supplier commitment and loyalty is a core theme of Supplier Relationship Management (SRM) within L4M6. CIPS emphasises that long-term, collaborative relationships encourage suppliers to invest time, resources, and innovation into the buyer relationship.
Providing guaranteed order levels reduces supplier uncertainty and risk, improving trust and encouraging commitment. This aligns with the concept of mutual dependency and relationship stability, which strengthens supplier loyalty.
The other options are incorrect because:
* A stand-off approach discourages collaboration
* Over-promising future work damages trust if unmet
* Excessive penalties create adversarial relationships
L4M6 Reference:
* Learning Outcome 3: Understand approaches to managing supplier relationships
* Topic: Supplier commitment, trust, and collaboration
* CIPS L4M6 Study Guide - Relationship spectrum and SRM principles
NEW QUESTION # 147
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender.
What purpose would this serve?
- A. To ensure only qualified suppliers bid for the tender
- B. To ensure more suppliers bid for the tender
- C. To ensure suppliers can find the opportunity
- D. To ensure suppliers know the deadline for tender submission
Answer: C
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.
NEW QUESTION # 148
Which of the following relationship types require the most investment from the buyer?
- A. adversarial
- B. strategic alliance
- C. single source
- D. partnership
Answer: D
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
NEW QUESTION # 149
In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?
- A. False, the product is in a supply market which is highly complex and the product is of high importance
- B. False, the product is in a supply market which is highly complex and the product is of low importance
- C. True, the product is in a supply market which is of low complexity and the product is of low importance
- D. True, the product is in a supply market which is of low complexity and the product is of high importance
Answer: D
Explanation:
Comprehensive and Detailed Explanation:
Leverage products are characterized by:
* High profit impact:They significantly affect the company's bottom line.
* Low supply risk:They are available from multiple suppliers, making it easy to switch if necessary.
These products often have standardized quality, and the competitive supply market allows buyers to negotiate favorable terms.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 150
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. 1 and 4 only
- B. 2 and 3 only
- C. 3 and 4 only
- D. 1 and 2 only
Answer: A
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.
NEW QUESTION # 151
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
- A. Emphasis on quality with zero defects
- B. Emphasis on the lowest price
- C. Emphasis on inspection of incoming supplies
- D. Emphasis on long-term relationship
- E. Emphasis on short-term relationship
Answer: A,D
Explanation:
Partnerships emphasize mutual goals such as quality improvement and long-term collaboration, contrasting with adversarial relationships that focus on cost and short-term gains.
NEW QUESTION # 152
A 'restricted market' is likely to arise when the entry costs for new suppliers are prohibitively high, and levels of market profitability amongst existing suppliers may be relatively low. Is this a true statement?
- A. No, entry costs are low in all markets due to technology, and this is increasing profitability significantly
- B. Yes, these markets usually have only a small number of competent and capable suppliers
- C. No, usually these markets have a regular flow of new suppliers entering them
- D. Yes, new entrants are low; however, due to high competition, profit levels are always very high
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Arestricted marketis characterized by:
* High entry barriers: Significant capital investment, stringent regulatory requirements, or specialized knowledge needed to enter the market.
* Limited profitability: Existing suppliers may operate on thin margins, deterring new entrants.
These factors result in a market with few competent and capable suppliers, limiting competition and options for buyers.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 153
Cigarettes and alcohol are often described as having an 'inelastic price'. What does this mean?
- A. The product is subject to high rates of tax
- B. Changes in price will greatly affect how much of the item is bought
- C. Changes in price will not affect how much of the item is bought
- D. The product is subject to age restrictions
Answer: C
Explanation:
A product with an 'inelastic price' means that consumption doesn't really depend on how much it costs. So you could increase the price of alcohol and cigarettes and people would tend to still buy them. A product with an elastic price means that a change in price would have a large affect on the number of people who bought the item. See p.95 for more details on price elasticity.
NEW QUESTION # 154
Which of the following documents would you expect a supplier to submit as part of a Request for Proposal?
Select THREE
- A. Gearing Ratio
- B. Risk Assessments
- C. Liquidity Ratio
- D. Method Statements
- E. Full pricing information
Answer: B,D,E
Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements.
However, depending on what you're procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn't form part of a RFP. See p.76
NEW QUESTION # 155
A garden centre has recently purchased some lollypop sticks to use as plant labels. The staff have written the name of the plant on the lollypop stick and put it next to the plant. This helps them identify which plant is which. However, after a couple of weeks, the lollypop sticks have become mouldy and the writing has faded.
Staff are now struggling to identity their plants. The Manager of the garden centre is considering returning the lollypop sticks and asking for a full refund as they were not fit for purpose. Can the Manager do this?
- A. No- as this was not the lollypop sticks intended purpose
- B. Yes- so long as the manager kept the receipt
- C. Yes- the lollypop sticks have gone mouldy- this is unacceptable
- D. No- the manager cannot prove that the product is faulty
Answer: A
Explanation:
The correct answer is 'no- as this was not the lollypop sticks intended purpose'. When deciding if something is fit for purpose, you must consider its intended and common purpose. In this case it would be for making lollypops. As the garden centre is using them for something other than their intended purpose, they can't complain if it doesn't work. Fit for purpose is discussed on p.65 p.s. there's a question like this in the real exam - it's just not lollypop sticks ; )
NEW QUESTION # 156
In a partnership who is responsible for decision making?
- A. The buyer
- B. The project steering committee
- C. The supplier
- D. Both the supplier and the buyer
Answer: D
Explanation:
The correct answer is both the supplier and the buyer- joint decision making is a key aspect of partnership relationships. A project steering committee decides on priorities, suggests improvements, conducts audits etc.
See p.152
NEW QUESTION # 157
What is value mapping?
- A. Creating value through the elimination of waste and operational inefficiencies
- B. Analysing the costs that go into making a product
- C. Segmenting suppliers based on the value they bring to the company
- D. Make vs Buy decision
Answer: A
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.
NEW QUESTION # 158
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. Confidentiality
- B. Security
- C. Employee rights
- D. Finance
Answer: A
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.
NEW QUESTION # 159
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?
- A. cost focus
- B. cost leadership
- C. differentiation focus
- D. differentiation
Answer: A
Explanation:
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'.
There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.
13
NEW QUESTION # 160
Which of the following relationship types are characterised by low levels of trust? Select TWO options
- A. Adversarial
(Correct) - B. Outsourced
- C. Arm's Length
- D. Single- Sourced
- E. Partnership
Answer: A,C
Explanation:
Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum
NEW QUESTION # 161
......
CIPS L4M6 Certification Exam is a valuable qualification for procurement and supply chain professionals who want to demonstrate their ability to manage supplier relationships effectively. CIPS Supplier Relationships certification covers a range of topics related to supplier management, including ethical and sustainable practices. L4M6 exam is internationally recognized and can help professionals advance their careers in this field.
Verified L4M6 dumps Q&As 100% Pass in First Attempt Guaranteed Updated Dump: https://drive.google.com/open?id=1xd8ercqJYI9dqgS-IWg5zXPY4baXmkmY
Pass CIPS Level 4 Diploma in Procurement and Supply L4M6 Exam With 265 Questions: https://www.pass4guide.com/L4M6-exam-guide-torrent.html