CIPS L4M6 Exam (page: 5)
CIPS Supplier Relationships
Updated on: 25-Dec-2025

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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?

  1. No, as there are many suppliers available
  2. No, as these are critical items to the buying organization
  3. Yes, as they present a great deal of risk to the organization
  4. Yes, as these are low-value items

Answer(s): A

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.



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?

  1. Quality-based relationship
  2. Traditional contracting relationship
  3. Partnering relationship
  4. Cost-based relationship

Answer(s): 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.



When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?

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

Answer(s): B

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.



A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board of directors. The recommendation is based on a range of advantages including, but not limited to, gaining local market knowledge. Is this a valid recommendation?

  1. No, because confidentiality risk will be higher in a partnership
  2. Yes, as intellectual property costs will be lower in a partnership
  3. No, local market knowledge is guaranteed in a tender process
  4. Yes, as investment costs can be shared in a partnership

Answer(s): D

Explanation:

Partnerships provide access to local market knowledge, enable shared investments, and mitigate risks associated with relocation. These advantages outweigh concerns that can be managed through strong contracts and confidentiality agreements.



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?

  1. Tom could avoid mentioning the conflict and hope that it is resolved without action
  2. Tom could hire an additional member of staff to take on some of the duties
  3. Tom could restructure the team so both members do not have to work together
  4. Tom could arrange a meeting and set performance targets for each member

Answer(s): 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.



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

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