Get all the Information About CIPS L4M6 Exam 2025 Practice Test Questions [Q58-Q76]

QUESTION 58
The executive board of a manufacturing company is requesting support from the procurement team because the company needs to improve its levels of profitability. After segmenting the overall spend by value and risk of supply, the senior buyer for the company is planning to undertake a cost modeling activity. This will be undertaken with a cross-organizational team of internal stakeholders and key strategic suppliers. What would be the buyer’s initial objective from the cost modeling activity?

QUESTION 59
Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.

QUESTION 60
Which of the following are considered ‘wastes’ which can be removed from a business? Select THREE.

QUESTION 61
When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

QUESTION 62
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?

QUESTION 63
Value for money is often described at the ‘three Es’; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?

QUESTION 64
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?

QUESTION 65
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years’ time. Should IPR be included into a contract between partners?

QUESTION 66
Lion Manufacturing is about to enter into a partnership with Penguin Logistics, who will provide delivery to and from Lion Manufacturing’s factories and warehouses. In this relationship, what type of negotiation strategy should Lion manufacturing use?

QUESTION 67
Under which circumstances would a partnership sourcing approach be used?

QUESTION 68
A large office orders weekly from a stationery supplier. The items are low-cost, and if the delivery is a day late, it does not affect the running of the office. Where would this supplier be positioned in a supplier matrix?

QUESTION 69
A law firm is ending an agreement with a client they have represented for many years. What is the most important legal consideration to be taken before terminating?

QUESTION 70
A company is about to invite tenders for a contract to clean external windows at several premises, all at least three storeys high. It is going to do this in two stages. For the first stage, it will issue a pre-qualification questionnaire (PQQ) and, from the replies, select at least five potential suppliers to invite to tender. Which of the following is a selection criterion rather than an award criterion?

QUESTION 71
Why is it more difficult for buyers in the public sector to build relationships with suppliers?

QUESTION 72
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?

QUESTION 73
The procurement department is sourcing new uniforms for its housekeeping team. Although the housekeeping team in itself doesn’t hold a lot of power within the business, they have a high interest in the activity as it will be them who is wearing the items. When designing the specification, how should the procurement department manage the housekeeping team?

QUESTION 74
Which of the following are advantages for the buyer of entering into a partnership? Select TWO.

QUESTION 75
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit. Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?

QUESTION 76
Which of the following would you use to qualify new suppliers? Select THREE.