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CIPS L4M6 Exam (page: 4)
CIPS Supplier Relationships
Updated on: 25-Dec-2025

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L4M6 PDF 226 Questions

Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph's company spends an additional 25% on moving and installing the cable. In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?

  1. Single-sourced
  2. Closer tactical
  3. Transactional
  4. Partnership

Answer(s): D

Explanation:

A partnership relationship allows Joseph to collaborate with suppliers on cost savings in manufacturing, logistics, and installation, providing a competitive edge over rival companies.



A buyer has a requirement to purchase 1,000 widgets for a manufacturing company. The widgets are critical for the next stage of the manufacturing process.
What would be the key selection criterion for this buyer?

  1. Ability to deliver by the deadline
  2. Ability to produce low-cost widgets
  3. Ability to meet ISO standards
  4. Ability to add value to the order

Answer(s): A

Explanation:

Timely delivery is essential to prevent disruptions in critical manufacturing processes.
While cost and standards are important, they are secondary when urgency and dependency are high.



Under which circumstances would a partnership sourcing approach be used?

  1. 1 and 2 only
  2. 1 and 3 only
  3. 1 and 4 only
  4. 2 and 4 only

Answer(s): B

Explanation:

Partnership sourcing is ideal for high-spend, high-risk situations where collaboration mitigates risks and maximizes value through innovation, efficiency, and trust.



Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.

  1. Emphasis on quality with zero defects
  2. Emphasis on the lowest price
  3. Emphasis on inspection of incoming supplies
  4. Emphasis on short-term relationship
  5. Emphasis on long-term relationship

Answer(s): A,E

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.



A competitor develops an alternative type of vacuum cleaner to one produced by your organization. Is this an example of the threat of substitutes, one of the five forces of competition described by competitive forces theory?

  1. Yes, customers may switch to alternative products
  2. Yes, there are no barriers to entry; it is an oligopoly
  3. No, it does not serve the same purpose
  4. No, it is a threat from a new entrant to the market

Answer(s): A

Explanation:

Substitute products pose a competitive threat by offering alternative solutions to customers, potentially eroding market share. Effective differentiation and customer retention strategies are essential.



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Marial Manyang 7/26/2023 10:13:00 AM

please provide me with these dumps questions. thanks
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