100% Free CIPS L4M6 Practice Test Questions

Question 1

Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have made investments in the supplier’s factory to support them with capital equipment upgrades in return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets when looking to supply doughnuts and work together on quality improvements. No contracts exist between the two companies. Could this relationship be said to be a partnership relationship?

A : No, because contracts do not exist between the two companies

B : No, because they have only worked together for ten years

C : Yes, because they have demonstrated close collaboration on various projects

D : Yes, because they both operate in the food sector

Answer: C

Question 2

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?

A : No, as there are many suppliers available

B : No, as these are critical items to the buying organization

C : Yes, as they present a great deal of risk to the organization

D : Yes, as these are low-value items

Answer: A

Question 3

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 : Better payment terms

B : Reduction of waste

C : Innovation developed as part of collaborative projects

D : Reducing costs

Answer: B,C

Question 4

Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have made investments in the supplier’s factory to support them with capital equipment upgrades in return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets when looking to supply doughnuts and work together on quality improvements. No contracts exist between the two companies. Could this relationship be said to be a partnership relationship?

A : No, because contracts do not exist between the two companies

B : No, because they have only worked together for ten years

C : Yes, because they have demonstrated close collaboration on various projects

D : Yes, because they both operate in the food sector

Answer: C

Question 5

CW Ltd is looking for a new supplier for its facilities management contract. The procurement department opens a tendering process and send the ITTs to several suppliers. Three suppliers submit their bids with detailed quotations and their quality accreditations. The procurement department realises that there are slight differences in the prices that these suppliers offer. Which of the following should be considered by CW procurement team to ensure that the best supplier is selected?

A : KPI development

B : Performance management

C : Value engineering

D : Value for money

Answer: D

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