CIPS Supplier Relationships L4M6 Exam Dumps: Updated Questions & Answers (October 2025)

Explanation

The correct answer is ‘Reduced waste in the supply chain’ – this is not a risk, this is a benefit P.134

The relationship spectrum runs from adversarial/transactional to collaborative partnerships such as strategic alliances and co-destiny. Also included are mid-spectrum arrangements like single sourcing and arm’s length. Options 2 and 3 list valid relationship types, making 2 and 3 correct.

Intense rivalry occurs when suppliers are equally balanced and face high barriers to exit, leading to aggressive competition to retain market share, as described in Porter’s Five Forces model.

Comprehensive and Detailed Explanation:

Traditional contracting agreements are typically characterized by:

Short-Term Focus:These agreements often prioritize immediate needs over long-term collaboration.

Transactional Nature:Emphasis is on price and terms rather than building strategic partnerships.

Explanation

STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44. Note in the exam they won't necessarily be given in this order.

Explanation

The correct answer is ‘accommodating’. This QUESTION NO: is based on the Thomas-Kilmann Conflict model on p.87. This comes up quite a bit in the exam. It is comprised of 5 techniques for dealing with conflict; competing, collaborating, compromising, avoiding and accommodating. In this instance, the supplier should have a high degree of co-cooperativeness and a low degree of assertiveness as the long-term relationship is very important- more important than the outcome of the disputed invoice.

Comprehensive and Detailed Explanation:

Partnering is most suitable in scenarios involving high-risk contracts, where the complexity, uncertainty, or strategic importance of the procurement necessitates close collaboration between the buyer and supplier. In such cases, a partnership allows for shared risk management, joint problem-solving, and mutual investment in achieving long-term objectives. This approach is less appropriate for low-cost, low-risk, or commoditized items where transactional relationships suffice.

If the market has few suppliers, an open tender is not appropriate, as it adds unnecessary time and cost. Instead, a restricted or negotiated procedure is more effective. Open tendering is best used in highly competitive markets.

An amicable approach is critical when alternative suppliers are limited or when ongoing collaboration is required during the termination period. Maintaining positive relations ensures smooth operations and protects reputations in the marketplace.

Explanation

Legislative changes wouldn't affect rivalry in a market as all suppliers would be equally as affected, the same with supply chain disruptions. Factors which do affect rivalry include; industry growth and decline, product differences, brand identity, switching costs, diversity of competitors and exit barriers. These are listed on p.41