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CIPS L4M6 Exam Syllabus Topics:

Topic 1
  • Understand processes and procedures for successful working with stakeholders
  • Identify items potentially suitable for partnership sourcing
Topic 2
  • Compare the practical considerations of stakeholder management
  • Compare the sources of added value that can be achieved through supply chain relationships
Topic 3
  • Matrices to identify supply, supplier and purchaser positioning
  • Supplier identification, assessment and selection
Topic 4
  • Appraise portfolio analysis techniques to assess relationships in supply chains
  • Analyse the concept of partnering and where it is a suitable approach
Topic 5
  • Lack of senior management support and trust
  • Lack of commitment by one or both parties
Topic 6
  • Positive relationships through positive contributions
  • Differentiate between different types of commercial relationships in supply chains
Topic 7
  • Define the standards that potential partners will be expected to meet
  • Identify the competitive forces that impact on relationships in supply chains
Topic 8
  • The link between relationships as a process and the achievement of added value outcomes
  • Understand the dynamics of relationships in supply chains
Topic 9
  • Analyse the purpose of organisational procedures and processes in sourcing goods and
  • or services
  • The link between organisations in supply networks

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CIPS Supplier Relationships Sample Questions (Q67-Q72):


Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?

  • A. Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer
  • B. Yes- partnership sourcing will improve sales figures
  • C. No- Andrew should outsource the vanilla extract.
  • D. No- Andrew should use an alternative supplier

Answer: A


The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this Question: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern - it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam


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. It isn't possible to tell
  • D. Option

Answer: B


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


Which of the following is not a type of tender process used in the Public Sector?

  • A. Competitive Dialogue
  • B. Restricted
  • C. Unrestricted
  • D. Competitive Procedure with Negotiation

Answer: C


Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77


Why is it more difficult for buyers in the public sector to build relationships with suppliers?

  • A. Buyer power is weak in the public sector
  • B. There are regulations prohibiting public sector buyers from developing relationships
  • C. Buyer power is strong in the public sector
  • D. There are regulations that state competitive tender processes must be undertaken regularly

Answer: D


It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).


Which of the following macro-environmental factors can affect supply chains?

  • A. environmental, ethical and cost
  • B. political, economic and social
  • C. social, economic and cost
  • D. environmental, ergonomic and social

Answer: B


STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.



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