L4M6 Practice Online

Question 1

Is ABC analysis a suitable technique for a procurement professional to categorise purchases by their profit impact and supply risk?

A : No, because Pareto technique is the most useful tool in this case

B : No, because ABC analysis only focuses on volume and value

C : Yes, because ABC analysis helps procurement identify possible risks

D : Yes, because A items always have the largest impact on business profitability

Answer: B

Question 2

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 there are many suppliers available

B : No, as these are critical items to the buying organization

C : Yes, as they present a great deal of risk to the organization

D : Yes, as these are low-value items

Answer: A

Question 3

What are the factors that make an Early Supplier Involvement (ESI) project successful? Select the THREE that apply

A : Increased cost saving

B : Equivocal specifications

C : Shortened time to market

D : Non-disclosure agreement

E : Mutual collaboration

F : Effective cross-functional team

Answer: D,E,F

Question 4

Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?

A : Equality

B : Environment

C : Equity

D : Ethics

Answer: C

Question 5

As the relationship between suppliers and buyers shifts from adversarial to collaborative co-destiny, some features of the relationship also change. What are some of these changes? Select TWO that apply

A : Both parties aim at joint issue resolution

B : Transactions become more once-off

C : Both parties communicate more open and more frequently

D : Both parties suggest fewer ideas for improvement

E : Communication between two parties becomes more silo-based

Answer: A,C

Name:	Supplier Relationships
Exam Code:	L4M6
Certification:	CIPS Certification
Vendor:	CIPS
Total Questions:	489
Last Updated:	Jun 30, 2025

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