L4M6 CIPS Supplier Relationships Free Practice Exam Questions (2025 Updated)

Explanation

The correct answer is ‘Yes- joint innovation projects are often a strong motivation for entering into a partnership’. The other options are simply not true statements. A lot of the questions on the ‘Partnerships’ chapters of the book are common-sense questions like this. It involves reading the QUESTION NO: and using logic, rather that relying on your knowledge of procurement. If you found this QUESTION NO: easy – that’s a good sign for the exam.

Routine items are low risk and low value. They are non-critical and often easily sourced. CIPS categorizes such items in the ‘Routine’ quadrant of the Kraljic Matrix, where minimal procurement effort is justified and supply assurance is easily managed.

Explanation

Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers’ money is spent wisely. Value for money is a mixture of price and quality.

Explanation

This is a leverage supplier on the Kraljic Matrix; high cost impact and low risk impact. The diagram on p.20 gives the example of utility services such as electricity as a common leverage supplier. There are lots of questions on Kraljic in the exam - do revise this topic and ensure you understand each of the four quadrants of the matrix

Explanation

A product with an ‘inelastic price’ means that consumption doesn’t really depend on how much it costs. So you could increase the price of alcohol and cigarettes and people would tend to still buy them. A product with an elastic price means that a change in price would have a large affect on the number of people who bought the item. See p.95 for more details on price elasticity.

In stakeholder management,Negative leadersandPromoterspossess high influence over others:

Negative leaders: Individuals who oppose the project and can sway others against it due to their influence.

Promoters: Advocates who support the project and can positively influence others.

Understanding these dynamics is crucial for effectively managing stakeholder resistance.

As highlighted in the CIPS study materials:

"Overcoming resistance- Promoters - They have a high influence on other stakeholders and support the project. They support and empower."

Explanation

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

Partnerships provide access to local market knowledge, enable shared investments, and mitigate risks associated with relocation. These advantages outweigh concerns that can be managed through strong contracts and confidentiality agreements.

Partnerships are characterized by joint performance measurement (e.g., shared KPIs) and transparent information sharing to build trust and alignment. Win:lose negotiations and rigid end periods are more associated with adversarial or transactional relationships.

Explanation

The correct answer is ‘Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise’. Be careful not to confuse mediation with arbitration – arbitration is when the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues. See p.112 for more information on solving disputes

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