L5M7 CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Free Practice Exam Questions (2025 Updated)

AClient Experience Strategyfocuses on enhancing theend-to-end customer journeyby understanding customer needs, personalising interactions, and incorporating feedback.

Short cited extract: “Customer experience strategy includes listening to feedback and personalising interactions.” (L5M7 Study Guide, p.183)

Offshoring typically seekscost reduction(e.g., labour arbitrage) while maintaining service/output levels; other motives are secondary. Short cited term: “cost reduction/advantages” (L5M7 Study Guide, domain 1.4 discussion).

Ahierarchical culturevaluesstability, control, and formal structure, with defined authority levels.

Short cited extract: “Hierarchy culture – stability, rules, and control mechanisms.” (L5M7 Study Guide, p. 60)

Manufacturing objectivesemphasise efficiency throughlong production runs,stable design, andinventory bufferingto ensure continuity of output.

Short cited term: “manufacturing – long runs and inventory buffer.” (L5M7 Study Guide, p. 36)

Multi-sourcingmaintainscompetitionand reduces dependency, promoting better pricing and performance from suppliers.

Short cited extract: “Multi-sourcing maintains competitive tension between suppliers.” (L5M7 Study Guide, p. 70)

TheModeis the value thatappears most oftenin a dataset, distinguishing it from themean(average) andmedian(middle value).

Short cited term: “mode = most frequent value.” (L5M7 Study Guide, p. 149)

The guide listsquality,innovation, andtime-to-marketamong ways supply chains createadded value(others include price/cost reduction and risk reduction). Short extract: “added value may be created through quality, innovation and time-to-market.” (L5M7 Study Guide, p.27)

Whenknowledge is low, members workindependently; highertechnological readinesscreates deliberate and structured IT use.

Short cited term: “low knowledge → independent working; high tech readiness → structured IT use.” (L5M7 Study Guide, p. 51)

Thefive Golden Metricsof supply chain performance are:safety,quality,delivery performance,total cost, andtotal cycle time. They represent universally accepted indicators of operational excellence.

Short cited extract: “Golden Metrics – safety, quality, delivery, total cost, total cycle time.” (L5M7 Study Guide, p.123)

Therelationship spectrumshows thattransactional relationshipsare theleast trust-based, focusing on short-term exchanges with minimal collaboration.

Short cited extract: “Transactional – low trust, short-term, low collaboration.” (L5M7 Study Guide, p.80)

Theautomotive industryusessupplier tiering, assigning responsibility to different supplier levels (Tier 1, Tier 2, etc.) for efficiency and control.

Short cited extract: “Automotive sector commonly applies supplier-tier structures.” (L5M7 Study Guide, p. 115)

ACost Leaderdetermines the market price standard and can influence both price reductions and increases. Their efficiency allows them to lead pricing trends.

Short cited term: “cost leader sets price standard in market.” (L5M7 Study Guide, p. 179)

JIT removes stockholding benefits, meaning firmslose economies of scalefrom bulk ordering. Each order is small and frequent.

Short cited term: “JIT limits bulk economies due to reduced inventory.” (L5M7 Study Guide, p. 159)

TheSCQFintegrates factors that promote long-term excellence across the chain:leadership, stakeholder commitment, sustainability, information management, and continuous improvement. These underpin effective quality and performance.

Short cited term: “key features include sustainability, information and continuous improvement.” (L5M7 Study Guide, p. 34)

ISO 9001sets the framework forquality management systems(QMS), based on principles such as customer focus, leadership, and improvement. Short extract: “ISO 9001—quality management.” (L5M7 Study Guide, p.122)

AFishbone Diagramidentifiesroot causesof problems by categorising factors (e.g., people, process, materials, environment).

Short cited term: “used to identify root causes of problems.” (L5M7 Study Guide, p. 126)

According toPorter’s Five Forces, new automated competitors represent athreat of new entrants, introducing innovation and market pressure.

Short cited extract: “New entrants increase competition and threaten existing players.” (L5M7 Study Guide, p.56)

TQM is aholisticphilosophy requiringorganisation-wideadoption and leadership commitment; partial/isolated adoption undermines results. Short cited terms: “holistic,” “organisation-wide commitment” (L5M7 Study Guide, p.118).

Technology enhancesbuyer access to data, broadening supplier choice and transparency, whichreduces supplier power.

Short cited term: “technology has reduced suppliers’ bargaining power” (L5M7 Study Guide, p. 66).