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L4M6 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Question # 64

In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?

Options:

A.

False, the product is in a supply market which is highly complex and the product is of low importance

B.

False, the product is in a supply market which is highly complex and the product is of high importance

C.

True, the product is in a supply market which is of low complexity and the product is of high importance

D.

True, the product is in a supply market which is of low complexity and the product is of low importance

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Question # 65

Which of the following factors would you use to analyse the macro-environment? Select THREE.

Options:

A.

social

B.

cultural

C.

political

D.

philosophical

E.

legislative

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Question # 66

Can a cost leadership strategy be described as 'no frills'?

Options:

A.

Yes, it lowers the cost and increases the competitive scope

B.

Yes, it lowers the cost and differentiates the product

C.

No, as it increases the costs and differentiates the product

D.

No, as it increases the costs and narrows the market segment

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Question # 67

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?

Options:

A.

Risk assessments at the premises

B.

Method statements for previous contracts

C.

Price that will be charged

D.

Environmental impact assessment

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Question # 68

Which of the following tender processes available to a buyer involves a Pre-Qualification Questionnaire (PQQ) to identify, assess, and create a shortlist of suppliers being invited to the Invitation to Tender (ITT) stage? Select TWO that apply.

Options:

A.

Open Procedure

B.

Mini-Competition Procedure

C.

Restricted Procedure

D.

Two-stage Procedure

E.

Competitive Bidding Procedure

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Question # 69

Which of the following is a characteristic of a traditional contracting agreement?

Options:

A.

Emphasis on mutual trust between purchaser and supplier

B.

Emphasis on quality assurance based on zero defects

C.

Emphasis on single source arrangement

D.

Emphasis on short-term business relationships

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Question # 70

Which of the following would be benefits of partnership sourcing? Select TWO that apply.

Options:

A.

Reduction in inflation

B.

Reduction in costs

C.

No need for contracts

D.

Reduction in stakeholder numbers

E.

Continuity of supply

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Question # 71

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?

Options:

A.

Routine

B.

Leverage

C.

Critical

D.

Bottleneck

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Question # 72

What is a key driver for developing a partnership relationship?

Options:

A.

Unrestricted market

B.

Well-understood services

C.

Fast-changing technology

D.

Low-risk supplies

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Question # 73

In the 1990s a company spent a lot of time and money developing a device that you could carry around that could play CDs. The product spent a long time in development but when it was released the sales figures were very disappointing. This was in part due to the fact another product was released at a similar time which had much more developed technology and could play music without the cumbersome size of a portable CD player. Which of the following did the company not consider when developing the product?

Options:

A.

threat of substitution

B.

threat of new entrant

C.

rivalry among existing competitors

D.

power of buyers

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Exam Code: L4M6
Exam Name: Supplier Relationships
Last Update: Nov 1, 2025
Questions: 243
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