Practice Test for L4M6 Certification Real 2025 Mock Exam
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CIPS L4M6 exam is designed to test not only theoretical knowledge but also practical skills. It includes case studies and scenarios that require candidates to apply their knowledge in real-world situations. Passing L4M6 exam demonstrates that a candidate has a deep understanding of supplier relationship management and is capable of effectively managing suppliers in a professional and ethical manner.
NEW QUESTION # 102
When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: D
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.
NEW QUESTION # 103
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company.
His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.
- A. end-users
- B. customers
- C. suppliers
- D. employees
- E. legal department
Answer: A,D,E
Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64
NEW QUESTION # 104
What is value mapping?
- A. Make vs Buy decision
- B. Segmenting suppliers based on the value they bring to the company
- C. Analysing the costs that go into making a product
- D. Creating value through the elimination of waste and operational inefficiencies
Answer: D
Explanation:
The definition of value mapping is given on p.69 this is; 'a process in which value is created through the elimination of waste and operational inefficiencies'. It ties into JIT / Lean.
NEW QUESTION # 105
Which of the following are primary activities, according to Porter's Value Chain? Select THREE.
- A. Marketing and Sales
- B. Procurement
- C. Human Resources
- D. Operations
- E. Inbound Logistics
Answer: A,D,E
Explanation:
This Question: refers to
Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service
NEW QUESTION # 106
Danny is procuring a new IT software, which he doesn't know much about. He has done a bit of research on the internet but is still unsure how much he can expect to pay. What should be Danny's next step?
- A. Issue an ITT
- B. Issue a RFQ
- C. Issue a RFI
- D. Issue an OJEU
Answer: C
Explanation:
Danny should issue a RFI (Request for Information). His next step would be to find out more about the products available by asking suppliers for information- this will help him put a spec together before he goes out to tender. The other options mean; RFQ - request for quotation- when you ask suppliers to submit a price.
ITT- Invitation to tender - a document you send out to suppliers which details all the information about the tender (this usually involves both price and quality components of assessment). OJEU- Official Journal of the European Union- where tenders for the Public Sector are published. For more info on RFI see p.74
NEW QUESTION # 107
A competitive advantage can be gained by doing what?
- A. Completing formal tenders for all buying requirements
- B. Engaging in market research
- C. Increasing your prices
- D. Building better relationships with primary stakeholders
Answer: D
Explanation:
The correct answer is 'Building better relationships with primary stakeholders'. This is a direct quote from the start of chapter 2.2: 'building better relationships with primary stakeholders such as employees, customers, suppliers and communities could lead to increased shareholder wealth by developing a competitive advantage'. The other three options wouldn't give you a competitive advantage; increasing prices would do the opposite, engaging in market research won't give you a competitive advantage unless you do something with that research such as implement a change to your business, and completing formal tenders for everything would be a waste of time and resources- there's no need to tender for low value, low risk items. See p.80
NEW QUESTION # 108
Price fluctuations can affect profitability. Is this statement correct?
- A. No, price is not related to profitability
- B. No, only decisions made by the chief executive affect the price
- C. Yes, if the product's costs increase and the price does not
- D. Yes, as sales may drop if the product is price inelastic
Answer: C
Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost- price relationships is key to managing profitability in procurement.
NEW QUESTION # 109
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
- A. yes- this will improve efficiencies for the buyer
- B. no- supplier development should only be done with strategic suppliers
- C. no- supplier development should only be done with tactical suppliers
- D. yes- it is important to develop all relationships
Answer: B
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
NEW QUESTION # 110
Which of the following are valid strategies for dealing with conflict? Select THREE
- A. Competing
- B. Compromising
- C. Collaborating
- D. Contesting
- E. Collecting
Answer: A,B,C
Explanation:
The three right answers are competing, collaborating and compromising. See the Thomas Kilmann Model on p.87. There are quite a few questions on this in the exam.
NEW QUESTION # 111
Which of the following statements are true of a market place which is considered a 'perfect competition'?
Select TWO.
- A. suppliers are selling differentiated products
- B. competition is at its highest level possible
- C. competition is not strong
- D. there are no barriers to entry
Answer: B,D
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level.
For more information on different types of market see p.40
NEW QUESTION # 112
Rachel and Jacky work in the procurement department of Foddy Foods Ltd. They have been told by their CEO to build better relationships with strategic suppliers as this will create value for money for the company. In what ways can value for money be achieved by building strong relationships with suppliers? Select TWO.
- A. Reduction of waste
- B. Innovation developed as part of collaborative projects
- C. Better payment terms
- D. Reducing costs
Answer: A,B
Explanation:
Supplier relationships can result in value for money in the reduction of waste and in innovation developed as part of collaborative projects. Remember that in CIPS waste doesn't necessarily mean physical waste (as in stuff you don't want any more). There are 7 types of waste including waiting, inventory, transportation etc. So when you develop a relationship with a supplier, this can reduce waste (e.g. you may be able to get deliveries quicker by integrating your ordering system with the supplier's, or you might reduce transportation by agreeing a Consignment stock). Having a good relationship with a supplier isn't necessarily going to get you a reduction in cost or better payment terms. See p.70 for more details on this- there's a short list of ways in which good supplier relationships can bring value for money to a business.
NEW QUESTION # 113
The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability. How should the procurement manager include the CEO in the procurement activity?
- A. The CEO is a key player- so should be given regular updates on progress
- B. It is important to keep the CEO satisfied as he runs the business
- C. The CEO is a key player- so it is important he is involved early in the process
- D. It is important to keep the CEO informed of all decisions that are made
Answer: C
Explanation:
The correct answer is 'The CEO is a key player- so it is important he is involved early in the process'. The CEO has high power and high interest which puts him in the top right-hand corner of Mendelow's Stakeholder Matrix (p.81). CIPS says Key Players should be involved early in the procurement process (p.82).
NEW QUESTION # 114
Richie has come up with a new idea for sourcing items for the business but feels that it will have mixed reviews within the team. He thinks that some people will be in favour of the idea, and some will be against it.
He doesn't think the CEO will have a strong opinion either way. In order to decide whether to put a business case together and present his idea to the CEO- what should Richie do?
- A. Make vs Buy Analysis
- B. Force Field Analysis
- C. Value Engineering Analysis
- D. Cost Analysis
Answer: B
Explanation:
Richie should do a Force Field Analysis - this is explained on p.86 and is an idea of Kurt Lewin - it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn't go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin's Force Field Analysis.
NEW QUESTION # 115
A comprehensive approach to managing the termination of a contractual relationship would include ...
- A. Setting aside the value of existing work done by both parties
- B. Attacking the personalities, not the problem
- C. Setting remedies and compensation for contractual breaches
- D. Giving qualitative feedback only
Answer: C
Explanation:
Effective termination includes remedies and compensation to address any contractual breaches, ensuring fairness and compliance with legal and ethical obligations.
NEW QUESTION # 116
A partnership approach to a buyer-supplier relationship, as opposed to a traditional adversarial approach, would have which of the following characteristics?
- A. Greater levels of transparency
- B. Increased supplier contractual terms
- C. Shared cost benefits
- D. Specifications designed by the buyer
Answer: A,C
Explanation:
Partnerships are built on trust and transparency, with shared benefits such as cost reductions and improved processes. Adversarial relationships, in contrast, focus on price and contractual obligations.
NEW QUESTION # 117
Which of the following would you use to qualify new suppliers? Select THREE.
- A. competency
- B. cooperation
- C. cash
- D. coordination
- E. culture
Answer: A,C,E
Explanation:
This is based on a real exam question- it's looking to see if you can remember Carter's 10 Cs. These are; cash, cost, consistency, culture, clean, communication, competency, capacity, commitment and control. (p.12 in the text book)
NEW QUESTION # 118
Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.
- A. Emphasis on inspection of incoming supplies
- B. Emphasis on short-term relationship
- C. Emphasis on quality with zero defects
- D. Emphasis on the lowest price
- E. Emphasis on long-term relationship
Answer: C,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.
NEW QUESTION # 119
The Public Sector in the UK is unable to enter into formal partnership relationships with any supplier. Is this statement TRUE?
- A. Yes- the Public Sector is regulated by EU procurement regulations which prohibits this
- B. Yes- the Public Sector is unable to enter partnerships because they operate in a monopoly market
- C. No- the Public Sector can enter into partnership relationships with suppliers providing they have tendered the opportunity
- D. No- the Public Sector can enter into partnership relationships when contracts are over the threshold value.
Answer: A
Explanation:
The correct answer is 'Yes- the Public Sector is regulated by EU procurement regulations which prohibits this'. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.
NEW QUESTION # 120
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?
- A. Tom could avoid mentioning the conflict and hope that it is resolved without action
- B. Tom could restructure the team so both members do not have to work together
- C. Tom could arrange a meeting and set performance targets for each member
- D. Tom could hire an additional member of staff to take on some of the duties
Answer: C
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.
NEW QUESTION # 121
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. Yes, as intellectual property costs will be lower in a partnership
- B. Yes, as investment costs can be shared in a partnership
- C. No, because confidentiality risk will be higher in a partnership
- D. No, local market knowledge is guaranteed in a tender process
Answer: B
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 # 122
Which of the following is not a stage in the relationship life-cycle?
- A. on-boarding
- B. performance management
- C. qualification
- D. design the specification
Answer: D
Explanation:
Designing the specification is not a stage in the relationship cycle- this would be done before the relationship begins. There are 6 stages of the relationship cycle; on-boarding, qualification, segmentation and risk management, performance management, development and innovation, phase out. P.13
NEW QUESTION # 123
If a stakeholder has high power in a business but isn't interested in your procurement activity, what should be your management style for dealing with this stakeholder?
- A. Keep them satisfied - they have high power
- B. Minimum effort is required as they're not interested- do nothing
- C. Manage closely - they're a key player
- D. Keep them informed - they have high power
Answer: A
Explanation:
The correct answer is 'keep satisfied' because the stakeholder is high power and low interest. This is the top left corner of Mendelow's Stakeholder Matrix - see p.81
NEW QUESTION # 124
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