CIPS L4M6 : CIPS Supplier Relationships

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CIPS L4M6 Exam Syllabus Topics:

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/supplier-relationships/

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CIPS Supplier Relationships Sample Questions:

Question #1
An IT company is developing and launching a new product to the market. The project requires experts from different divisions of the business. What type of team should run this project?

A. Existing performing team
B. Cross-organisational team
C. Finance team
D. Virtual team

Question #2
In Public Sector procurement a PIN is sent out to inform suppliers of an upcoming tender opportunity. What does PIN stand for?

A. Procurement Identification Number
B. Procurement Information Number
C. Possibilities Identified Notice
D. Prior Information Notice

Question #3
Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?

A. Yes, as this will allow the buyer enough time to mobilize a new contract
B. No, as this will guarantee a hostile end to the buyer-supplier relationship
C. No, as this will be in breach of statutory contract law requirements
D. Yes, as the buyer will then be responsible for providing additional business to the supplier

Question #4
Which of the following statements explains the 'relationship spectrum' concept in supply chains?

A. The broad range of business activities that are undertaken to support collaborative commercial relationships
B. The broad range of business activities that embrace both internal and external commercial relationships
C. The range of market appraisal tools that help buyers to negotiate a suitable type of commercial relationship
D. The range of relationships that a buyer could use to classify its supplier base, which will be beneficial and drive value for the business

Question #5
Security company ARLA has recently won a new contract for guarding a school. Another company, ENA, has previously been providing the contract and employed the current guard who has worked at the school for 5 years. What key legal issue needs to be considered when the current relationship is terminated and the new company takes over?

A. Sustainability policies
B. Employment rights
C. Intellectual property rights
D. Quality policies

Solutions: