CIPS L4M6 Exam (page: 6)
CIPS Supplier Relationships
Updated on: 25-Dec-2025

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A common reason attributed to many partnerships failing is ...

  1. A bad advertising campaign
  2. Not winning every contract they bid for
  3. No contract being in place
  4. Poor communication

Answer(s): D

Explanation:

Poor communication leads to misunderstandings, unmet expectations, and conflict, undermining partnerships. CIPS stresses the importance of transparent and regular communication to ensure alignment and success.



Which of the following are advantages for the buyer of early supplier involvement with the buyer's product development team?

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

Answer(s): D

Explanation:

Early supplier involvement ensures the supplier understands process timelines and allows the buyer to leverage supplier capabilities. This improves product development efficiency and enhances outcomes.



Philip is working with a supplier where the annual spend is low but the market risk is high.
What portfolio analysis category would be appropriate?

  1. Strategic
  2. Leverage
  3. Non-critical
  4. Bottleneck

Answer(s): D

Explanation:

Bottleneck items pose high risk despite low spend. Effective management of these suppliers minimizes supply chain disruptions, aligning with portfolio analysis strategies.



A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers.
What would be the most beneficial way for them to initially narrow down the supply options?

  1. Look at lowest-cost suppliers only
  2. Predefine minimum standards suppliers must meet
  3. Go only to companies they have bought other products from
  4. Preselect companies who have the largest market share

Answer(s): B

Explanation:

Setting minimum standards helps filter suppliers efficiently, ensuring that only capable and reliable suppliers are considered. This approach supports both cost and quality objectives.



Which one of the following is an advantage of early supplier involvement?

  1. Supplier is responsible for all intellectual property risks
  2. Large investment in supplier communications
  3. Understanding of supplier capabilities
  4. No need for supplier non-disclosure agreements

Answer(s): C

Explanation:

Early supplier involvement highlights supplier strengths and capabilities, enabling collaborative development. This supports innovation and optimizes the procurement process.



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

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