2025 ACCURATE L4M6–100% FREE NEW EXAM EXPERIENCE | L4M6 EXAM CRAM

2025 Accurate L4M6–100% Free New Exam Experience | L4M6 Exam Cram

2025 Accurate L4M6–100% Free New Exam Experience | L4M6 Exam Cram

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CIPS Supplier Relationships Sample Questions (Q166-Q171):

NEW QUESTION # 166
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

  • A. Cleaning
  • B. Manufacturing of all bicycle parts
  • C. Manufacturing of bells only
  • D. Facilities Management

Answer: A,D

Explanation:
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their 'core' business so they should retain this in-house


NEW QUESTION # 167
Which of the following are characteristics that differentiate between a partnership relationship and traditional contracting relationships? Select THREE.

  • A. No tender process
  • B. Early supplier involvement
  • C. Supplier KPIs
  • D. No defined end period
  • E. Lower costs

Answer: A,B,D

Explanation:
The correct answers are; no tender process, early supplier involvement and no defined end-period. A partnership wouldn't automatically mean lower costs, and in a partnership the KPIs are usually a joint performance measurement rather than set to the supplier. For more information on the difference between partnerships and contractual relationships see p.124-5


NEW QUESTION # 168
Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent price increase. What is this tactic known as?

  • A. Hedging buying
  • B. Spot buying
  • C. Derivative buying
  • D. Forward buying

Answer: D

Explanation:
Forward buying involves purchasing in advance to lock in current prices and avoid future increases. This strategy is effective in volatile markets where price hikes are anticipated.


NEW QUESTION # 169
Kinky Boots Ltd provides high heeled shoes in large sizes. Their target market are Drag Queens. There are a couple of rival shoe manufacturers in this market and Kinky Boots Ltd offer the cheapest high heels. What strategy is Kinky Boots Ltd employing in terms of competitive advantage?

  • A. cost leadership
  • B. differentiation
  • C. differentiation focus
  • D. cost focus

Answer: D

Explanation:
This is 'cost focus' - Kinky Boots is both focusing on being a cost leaser (by providing the cheapest products) and focusing on a niche market (drag queens). When these two strategies are combined it is called 'cost focus'. There's a couple of questions on Porter's Generic Strategies in the exam- there's a useful diagram of this on P.13


NEW QUESTION # 170
What is a disadvantage of including qualitative KPIs into a contract?

  • A. They can lead to poor supplier performance
  • B. They pull focus from the more important quantitative KPIs
  • C. They make the buyer seem weak
  • D. They are hard to measure

Answer: D

Explanation:
The correct answer is 'They are hard to measure' p.103


NEW QUESTION # 171
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