Latest [Jun 24, 2026] CIPS L4M6 Exam Practice Test To Gain Brilliante Result
Take a Leap Forward in Your Career by Earning CIPS L4M6
CIPS L4M6 exam covers a wide range of topics, including supplier segmentation, supplier performance management, supplier development, and relationship management strategies. Candidates are expected to understand the importance of effective supplier relationship management and the impact it has on the procurement function. They should be able to identify the key factors that influence supplier relationships and develop techniques to manage them effectively. L4M6 exam also evaluates the candidate's ability to analyze supplier data, develop supplier performance metrics, and implement supplier improvement plans. Successful completion of the CIPS L4M6 exam is a testament to a candidate's expertise in supplier relationship management and can enhance their career prospects in the procurement field.
CIPS L4M6 certification is an essential qualification for procurement professionals who wish to develop their expertise in supplier management. CIPS Supplier Relationships certification provides a comprehensive understanding of supplier management best practices and equips procurement professionals with the tools and techniques necessary to succeed in their roles. It is a globally recognized qualification that enhances career prospects and demonstrates a commitment to professional development.
NEW QUESTION # 70
A company supplies IT equipment and buys most of its components from first-tier suppliers in the UK. It wants to analyse its supply market to develop the supply chain and is going to review the main factors that have an influence. The company wants to use the STEEPLED external environmental analysis framework to achieve the best result. Which of the following STEEPLED factors is most likely to have the greatest effect?
- A. Economic
- B. Sociocultural
- C. Ethical
- D. Technological
Answer: D
Explanation:
In the context of the IT equipment industry,Technologicalfactors are paramount. The rapid pace of technological advancement influences product development, supply chain processes, and market competitiveness. Utilizing the STEEPLED framework, technological considerations would significantly impact the company's supply chain strategy.
As per the CIPS Intelligence Hub:
"STEEPLED analysis is a strategic planning methodology that can be used across all business functions to discover, evaluate, organise, and track external risk."
- CIPS Intelligence Hub: Using STEEPLED analysis to develop your supply chain
NEW QUESTION # 71
Pablo has run an open- competition to secure a new contract for a supplier of paper for his Birthday Card making company. He has received 10 submissions from various suppliers and needs to put a team together to evaluate the bids. What type of team should Pablo consider?
- A. A team composed of internal and external stakeholders
- B. A team composed of internal stakeholders
- C. A team of procurement experts
- D. A cross-functional team
Answer: D
Explanation:
Pablo should use a 'cross-functional team'. CIPS love 'cross-functional teams' and refer to them frequently throughout the study guide. A cross-functional team is people from different departments who come together for a purpose, such as to evaluate a tender. The benefit of using a cross-functional team is that you get people with different experiences and knowledge. So in this example a Cross-Functional team could compose of people from various departments such as procurement, logistics, manufacturing and legal. P.76
NEW QUESTION # 72
Which of the following are recognised organisational culture types? Select THREE
- A. Role
- B. Team
- C. Knowledge
- D. Person
- E. Power
Answer: A,D,E
Explanation:
The correct answer is power, role and person. This is part of Hardyman's Cultural Types on p.169 (there are four- the other one is task). There's quite a few questions on this in the exam, so it's worth doing some additional research on this prior to the exam as the study guide doesn't provide much detail on this.
NEW QUESTION # 73
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. Equity
- B. Equality
- C. Ethics
- D. Environment
Answer: A
Explanation:
Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es
NEW QUESTION # 74
Which of the following would be the most likely driver for a manufacturing organisation to consider partnership sourcing?
- A. The marketplace is stable and costs are decreasing
- B. Raw material prices are reducing
- C. To increase the number of suppliers
- D. Product life cycles are shortening
Answer: D
Explanation:
Shortening product life cycles require close collaboration and innovation between buyer and supplier to stay competitive. Partnership sourcing provides shared development, reduced lead times, and improved responsiveness. Stable markets or falling costs do not justify partnerships; they are best suited for high-risk, fast-changing environments.
NEW QUESTION # 75
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?
- A. outsource
- B. arms length
- C. transactional
- D. strategic alliance
Answer: D
Explanation:
As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember - strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details
NEW QUESTION # 76
A low level of trust between parties can often lead to partnership relationships being unsuccessful and failing.
Which of the following supports the protection of commercially sensitive information between both parties and can help to retain trust?
- A. A business continuity plan
- B. Early supplier involvement
- C. A non-disclosure agreement
- D. An authorised business case
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
A Non-Disclosure Agreement (NDA) is a legal contract that establishes a confidential relationship between parties. It ensures that any sensitive information shared during the course of a partnership is not disclosed to unauthorized parties. Implementing an NDA fosters trust by providing assurance that proprietary information, trade secrets, and other confidential data are protected. This is particularly crucial in partnerships where open communication and information sharing are essential for success.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 77
In the 1990s a company spent a lot of time and money developing a device that you could carry around that could play CDs. The product spent a long time in development but when it was released the sales figures were very disappointing. This was in part due to the fact another product was released at a similar time which had much more developed technology and could play music without the cumbersome size of a portable CD player. Which of the following did the company not consider when developing the product?
- A. threat of new entrant
- B. threat of substitution
- C. power of buyers
- D. rivalry among existing competitors
Answer: B
Explanation:
The portable CD player has been replaced with a substitute product. This threat wasn't considered by the company and this resulted in poor sales. There are many questions in the exam on Porter's 5 Forces - see p. 39
NEW QUESTION # 78
One of the fist stages of designing a Partnership is to come up with joint KPIs. These should be:
- A. Time bound, difficult and relevant
- B. Measurable, achievable and time-bound
- C. Relatable, specific and measurable
- D. Significant, measurable and achievable
Answer: B
Explanation:
The correct answer is Measurable, achievable and time-bound. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.
NEW QUESTION # 79
Beyond Say is a manufacturer of diamond rings.
It sources a lot of different parts to create its products including diamonds, gold, cardboard boxes for the rings to go in, as well as stationary and copier paper for the offices.
Although it doesn't buy many diamonds, these represent a large part of Beyond Say's spend.
Which category of spend would diamonds represent?
- A. Operational Spend
- B. Strategic Spend
- C. Routine Spend
- D. It isn't possible to tell
Answer: B
Explanation:
This is category 'A' spend in the ABC model - they represent a large value and a small number of purchases / suppliers. See p.17 for more information on the ABC Analysis
NEW QUESTION # 80
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 suppliers can find the opportunity
- B. To ensure suppliers know the deadline for tender submission
- C. To ensure only qualified suppliers bid for the tender
- D. To ensure more suppliers bid for the tender
Answer: A
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 # 81
Rivalry between suppliers is more likely to be intense in which of the following situations?
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: B
Explanation:
Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter's Five Forces model.
NEW QUESTION # 82
The Kraljic Model is most useful for which aspect of procurement?
- A. category management
- B. cost analysis
- C. cost reduction
- D. risk management
Answer: A
Explanation:
The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.
NEW QUESTION # 83
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?
- A. No, it is an example of a less time-intensive partnership
- B. Yes, as this is an example of a target costing approach
- C. Yes, because it includes elements of joint product development
- D. No, as there is a short-term focus on the relationship
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
The described relationship includes:
* Joint Product Development:Collaborative involvement in strategic projects indicates a deep partnership.
* Integrated Systems:JIT delivery systems require synchronized operations, reflecting significant integration.
These elements are hallmarks of a significant integration partnership.
Reference:
"Strategic Supply Chain Partnership"-ResearchGate: Strategic Supply Chain Partnership
NEW QUESTION # 84
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?
- A. No, because confidentiality risk will be higher in a partnership
- B. No, local market knowledge is guaranteed in a tender process
- C. Yes, as investment costs can be shared in a partnership
- D. Yes, as intellectual property costs will be lower in a partnership
Answer: C
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.
NEW QUESTION # 85
Which of the following are Intellectual Property Rights that you would you encounter in procurement and supply contracts? Select THREE.
- A. Risk Assessments
- B. Copywrite
- C. Method Statements
- D. Patents
- E. Trademark
Answer: B,D,E
Explanation:
Intellectual Property Rights include; Patents, Copywrite, Trademarks and Trade Secrets. P.114
NEW QUESTION # 86
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To take the CIPS L4M6 certification exam, candidates must have completed the CIPS Level 4 Diploma in Procurement and Supply or an equivalent qualification. L4M6 exam is delivered in a computer-based format, and candidates have two hours to complete it. L4M6 exam consists of 60 multiple-choice questions, and a pass mark of 70% is required to obtain the certification.
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