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CIPS L4M6 Exam Syllabus Topics:

Topic 1
  • Matrices to identify supply, supplier and purchaser positioning
  • Supplier identification, assessment and selection
Topic 2
  • Analyse the purpose of organisational procedures and processes in sourcing goods and
  • or services
  • The link between organisations in supply networks
Topic 3
  • Compare the practical considerations of stakeholder management
  • Compare the sources of added value that can be achieved through supply chain relationships
Topic 4
  • Compare team management techniques to ensure positive stakeholder relationships
  • Identify the processes for terminating stakeholder relationships
Topic 5
  • Lack of senior management support and trust
  • Lack of commitment by one or both parties
Topic 6
  • The link between relationships as a process and the achievement of added value outcomes
  • Understand the dynamics of relationships in supply chains
Topic 7
  • Appraise portfolio analysis techniques to assess relationships in supply chains
  • Analyse the concept of partnering and where it is a suitable approach

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CIPS Supplier Relationships Sample Questions (Q110-Q115):


In an oliogopy market, what would a regulator do?

  • A. ensure value for money for buyers
  • B. prevent price fixing and collusion
  • C. stop the market becoming a monopoly
  • D. ensure health and safety standards

Answer: B


In an oliogopy, supplier power is strong. Sometimes regulators are required in the market to prevent the group of suppliers conspiring together to artificially increase prices. See p.40 for more information on Oligopy markets.


You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

  • A. buyer power
  • B. threat of substitution
  • C. threat of new entrant
  • D. supplier power

Answer: C


This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter's 5 Forces - see p. 39


What is value mapping?

  • A. Analysing the costs that go into making a product
  • B. Creating value through the elimination of waste and operational inefficiencies
  • C. Make vs Buy decision
  • D. Segmenting suppliers based on the value they bring to the company

Answer: B


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.


Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

  • A. Yes-partnerships do not have end dates because they involve significant investment
  • B. No- partnerships should have end dates so both parties have a way out if things don't work out
  • C. Yes- partnerships do not have end dates because there is never a contract involved
  • D. No- partnerships have end dates as they are contractual relationships

Answer: A


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.


Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?

  • A. Conduct regular audits
  • B. Threaten the supplier with termination if he underperforms
  • C. Do frequent appraisals on the supplier
  • D. Ensure there is a damages clause in the contract

Answer: A


The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.



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