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  1. Home
  2. CIPS Certification
  3. L4M6 Exam
  4. CIPS.L4M6.v2025-06-04.q91 Dumps
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Question 86

Early Supplier Involvement can be described as a collaborative relationship between a buyer and a supplier to develop a new project. Handfield's model describes four different levels of supplier involvement ranging from none to 'black box' (which is when the design is primarily driven by the supplier. What other level features on this model?

Correct Answer: C
The Handfield ESI model is on p.98 and comprises of Black Box, Grey Box, White Box and None. Therefore Red and Blue can be automatically discounted. The correct answer is White Box as the definition given is correct. Grey Box is a formalised supplier integration; joint development activity between buyer and supplier. I have no idea why Handfield calls his system after coloured boxes- but it's only briefly mentioned in the study guide and is not likely to be a big topic in the exam.
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Question 87

Barry is a procurement manager at Sea Biscuits, a company which manufactures biscuits in the shape of dolphins and starfish. He works in an office that orders stationary regularly for its 100 person workforce. Stationary is a low-spend category item and Barry often orders stationary from different suppliers based on which supplier can provide the item the cheapest at that point in time. According to the Kraljic matrix, what type of suppliers provides stationary to Barry?

Correct Answer: C
Stationary is a routine item; it is ordered often (as Barry uses different suppliers), it is a low category spend, and low risk to the business' operations (a late delivery of pens isn't going to stop the company making its biscuits). 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 (see p.20)
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Question 88

A local council requires facilities management services for ten schools based in their region. This service is a high-spend, high-risk, critical contract. Which sourcing approach would be the most appropriate?

Correct Answer: B
Competitive tendering is the most suitable approach for high-risk, high-value contracts as it ensures transparency, fairness, and the selection of the most capable supplier based on predefined criteria.
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Question 89

Which of the following relationship types are listed on the relationship spectrum?
* Partnership
* Contractual
* Transactional
* Conspiratorial

Correct Answer: B
Comprehensive and Detailed Explanation:
Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:
* Transactional:Short-term, price-focused relationships with minimal collaboration.
* Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.
While "contractual" refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. "Conspiratorial" is not a recognized relationship type in procurement contexts.
Reference:
CIPS L4M6 Study Guide
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Question 90

Which one of the following would constitute a succession issue when terminating a relationship?

Correct Answer: D
Comprehensive and Detailed Explanation:
Succession issues pertain to the challenges associated with ensuring the uninterrupted supply of goods or services when transitioning from one supplier to another. Continuity of supplies is a primary concern, as any disruption can impact operations, customer satisfaction, and revenue. Effective succession planning involves:
* Identifying Alternative Suppliers:Ensuring that backup suppliers are in place and capable of meeting requirements.
* Knowledge Transfer:Facilitating the transfer of critical information and processes to new suppliers.
* Inventory Management:Maintaining adequate stock levels during the transition period.
Other options listed, such as processing penalties, deletion of old specifications, and payment of old invoices, are administrative tasks that, while important, do not directly relate to succession planning.
Reference:
CIPS L4M6 Study Guide
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