L4M6

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The dumps for L4M6 exam was last updated on Sep 26,2025 .

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Question#1

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. strategic alliance

C. transactional

D. arms length

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

Question#2

Which of the following is not a stage in the relationship life-cycle?

A. on-boarding

B. qualification

C. performance management

D. design the specification

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

Question#3

Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn’t need to order much from them as the staff re-wear the same clothes to work. The contract has now expired.
Should Debbie do a Competitive Tender to source a new contract?

A. Yes C the contract has now expired so she must do a new competitive tender

B. Yes- competitive tender is the only option to procure uniforms

C. No- the contract is not of significant value

D. No- Debbie should continue using the same supplier- it doesn’t matter that the contract has expired.

Explanation:
The correct answer is ‘no-the contract is not of significant value’. CIPS state that competitive tenders should only be used when ‘the item or service is of significant value’ p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.

Question#4

Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.

A. Request for Information

B. Request for Quotation

C. Pre-Qualification Questionnaire

D. Invitation to Tender

Explanation:
Request for Information and Pre-Qualification Questionnaire can be used for short-listing suppliers. Request for Quotation is used when the only variable is price and you would like suppliers to submit a price for you. Invitation to Tender would be the next stage after RFI / PPQ- this is sent out to those suppliers who have passed selection, and details the second stage of the competition. See p.75 for more details.

Question#5

Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph’s company spends an additional 25% on moving and installing the cable.
In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?

A. Single-sourced

B. Closer tactical

C. Transactional

D. Partnership

Explanation:
A partnership relationship allows Joseph to collaborate with suppliers on cost savings in manufacturing, logistics, and installation, providing a competitive edge over rival companies.

Exam Code: L4M6 Q & A: 243 Q&As Updated: Sep 26,2025

Full L4M6 Exam Dumps Here

Exam Code: L4M6
Q & A: 243 Q&As
Updated: Sep 26,2025

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