Latest L4M6 Pass Guaranteed Exam Dumps with Accurate & Updated Questions
L4M6 Exam Brain Dumps - Study Notes and Theory
CIPS L4M6 Exam Syllabus Topics:
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NEW QUESTION 36
A supplier is working with a buyer who represents a large percentage of his business. Without this particular buyer, the supplier would likely go out of business. There has been a dispute in the last invoice which the buyer is not happy about. What technique should the supplier use when talking to the buyer about this?
- A. Accommodating- the supplier should show a large degree of co-cooperativeness as the buyer is important to their survival
- B. Accepting - the supplier should accept that conflict should sometimes occur in buyer: supplier relationships and work hard to avoid them
- C. Avoiding- the supplier should avoid talking with the buyer as this may result in conflict
- D. Competing- the supplier needs to earn more money as they are struggling financially
Answer: A
Explanation:
The correct answer is 'accommodating'. This Question: is based
on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.
NEW QUESTION 37
What is the correct order of the stages of team development?
- A. Forming, storming, norming, performing
- B. Forming, norming, performing, storming
- C. Storming, forming, norming, performing
- D. Storming, forming, performing, norming
Answer: A
Explanation:
The correct answer is Forming, storming, norming, performing (p.91). Note; some people add on two additional stages to this; mourning and adjourning. The study guide forgets to mention this, but the exam may ask you about these additional stages. So I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model)
NEW QUESTION 38
Phone Maker Incorporated is a manufacturer of mobile phones. It is considering investing in a partnership with its supplier of batteries and circuit boards as it wishes to produce new models of its phone more regularly. What is the main driver for Phone Maker Incorporated?
- A. Cheaper costs
- B. Reduced product life-cycles
- C. Changes in the marketplace
- D. Better quality products
Answer: B
Explanation:
The correct answer is 'reduced product life-cycles'. In this example the reason for entering a partnership is to be able to produce new models of phones more quickly- this is likely because consumers are wanting to change mobile phones more often than they did in the past, so in order to keep up with demand, Phone Maker Incorporated need to produce more phones, more quickly. Drivers of Partnership Sourcing is a key topic in the exam - you can revise these by looking at p.127 in the Study Guide
NEW QUESTION 39
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?
- A. No- partnerships should have end dates so both parties have a way out if things don't work out
- B. Yes-partnerships do not have end dates because they involve significant investment
- C. No- partnerships have end dates as they are contractual relationships
- D. Yes- partnerships do not have end dates because there is never a contract involved
Answer: B
Explanation:
The correct answer is 'Yes-partnerships do not have end dates because they involve significant investment'. This is explained on p.126. Partnerships can involve contracts - so the other 'yes' answer is incorrect.
NEW QUESTION 40
What are service credits?
- A. A clause in a contract that allows for additional bonus payments for meeting KPIs
- B. When a buyer makes a purchase on credit
- C. A type of payment where goods are delivered before payment is made
- D. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
Answer: D
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION 41
Innovation is a key consideration when entering into a partnership. Is this statement true?
- A. Yes- joint innovation projects are often a strong motivation for entering into a partnership
- B. No- innovation is best achieved in a contractual relationship where KPIs can be monitored closely.
- C. No- the key consideration when entering a partnership is cost reduction
- D. Yes- innovation is the only reason to enter into a partnership
Answer: A
Explanation:
The correct answer is 'Yes- joint innovation projects are often a strong motivation for entering into a partnership'. The other options are simply not true statements. A lot of the questions on the 'Partnerships' chapters of the book are common-sense questions like this. It involves reading the Question: and using logic, rather that relying on your knowledge of procurement. If you found this Question: easy - that's a good sign for the exam.
NEW QUESTION 42
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy's first step?
- A. Run an open competition - send out an ITT
- B. Run an open competition - send out a RFQ
- C. Run a restricted competition- send out a RFI
- D. Run a restricted competition - send out a PQQ
Answer: D
Explanation:
The correct answer is 'run a restricted competition - send out a PQQ'. This Question: tests both your understanding of when to run open and restricted competitions (which is explained on p.75) and your understanding of tender documents. Mandy should run a restricted competition- there are a lot of options in the marketplace and this will allow her to pre-qualify those who best suit her requirements. Running an open competition when there are lots of suppliers would be too time-consuming- you need a way of making a short-list. When you run a restricted competition, the first stage is sending out a PQQ- pre-qualification questionnaire; this document is sent to suppliers asking for necessary information to support their qualification as an approved supplier.
NEW QUESTION 43
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. Environment
- B. Equality
- C. Equity
- D. Ethics
Answer: C
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 44
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
- A. no- supplier development should only be done with strategic suppliers
- B. yes- it is important to develop all relationships
- C. no- supplier development should only be done with tactical suppliers
- D. yes- this will improve efficiencies for the buyer
Answer: A
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
NEW QUESTION 45
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. Option
- B. Option
- C. Option
- D. It isn't possible to tell
Answer: A
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 46
Which of the following are NOT one of the four key principles of procurement in the EU?
- A. Value for Money
- B. Transparency
- C. Proportionality
- D. Non-Discrimination
Answer: A
Explanation:
Value for money is not a principle of EU procurement. The four key principles are; transparency, non-discrimination, proportionality and equality of treatment. The principles are basically about ensuring the procurement process is fair. See p.75
NEW QUESTION 47
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?
- A. The product is easy to source elsewhere
- B. Strong governmental regulation
- C. Low levels of profitability
- D. High barriers to entry
Answer: A
Explanation:
The correct answer is 'The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.
NEW QUESTION 48
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?
- A. Yes- mediation means the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues
- B. No- mediation could have a negative impact on the companies' reputation
- C. No- it would be better to solve the disagreement in-house
- D. Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise
Answer: D
Explanation:
The correct answer is 'Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise'. Be careful not to confuse mediation with arbitration - arbitration is when the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues. See p.112 for more information on solving disputes
NEW QUESTION 49
Which of the following are considered part of the '5 Rights of Procurement'? Select THREE.
- A. place
- B. focus
- C. quality
- D. time
- E. cost
Answer: A,C,D
Explanation:
The 5 Rights of procurement are; place, quality, quantity, time, price. (Price and Cost are not the same thing). See p.38
NEW QUESTION 50
Togo Bongos is a manufacturer of percussion instruments, in particular of bongo drums. It requires electricity to run its factories and this is a major factor of cost impact. There are lots of suppliers of electricity in the market and there is no switching costs if Togo Bongos wanted to switch suppliers. What type of supplier is Togo Bongo's electricity supplier?
- A. routine
- B. strategic
- C. bottleneck
- D. leverage
Answer: D
Explanation:
This is a leverage supplier on the Kraljic Matrix; high cost impact and low risk impact. The diagram on p.20 gives the example of utility services such as electricity as a common leverage supplier. There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix
NEW QUESTION 51
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