CIPS L4M6 Dumps - 100% Cover Real Exam Questions (Updated 226 Questions)
Real L4M6 dumps - Real CIPS dumps PDF
NEW QUESTION # 45
You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?
- A. buyer power
- B. threat of new entrant
- C. threat of substitution
- D. supplier power
Answer: B
Explanation:
This is a threat of a new entrant. The competitor has now entered the washing machine market and is competing directly with you. This is not a threat of substitution as it is the same product. A substitution would be if they invented a new product that washed clothes and people started buying this instead of washing machines. There are many questions in the exam on Porter's 5 Forces - see p. 39
NEW QUESTION # 46
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?
- A. White Box - when there is informal integration and the buyer consults with a supplier on a design
- B. Grey Box - when the involvement is buyer driven
- C. Blue Box - when the buyer creates the product without input from the supplier
- D. Red Box- when the supplier provides legal advice to the buyer on areas such as copywrite
Answer: A
Explanation:
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.
NEW QUESTION # 47
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?
- A. Request for quotation
- B. Direct negotiation
- C. Competitive tendering
- D. Statement of source requirements
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
For high-value and high-risk contracts, such as facilities management services for multiple schools, competitive tenderingis the most appropriate sourcing approach. This process involves inviting multiple suppliers to submit bids, ensuring transparency, fairness, and the opportunity to assess various proposals to select the most suitable supplier. It helps in mitigating risks and achieving value for money.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 48
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
- A. OJEU
- B. PCR 2015
- C. TUPE
- D. ITT
Answer: C
Explanation:
The correct answer is TUPE: Transfer of Undertakings (Protection of Employment). Details on TUPE can be found on p.115
NEW QUESTION # 49
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender.
What purpose would this serve?
- A. To ensure only qualified suppliers bid for the tender
- B. To ensure suppliers can find the opportunity
- C. To ensure more suppliers bid for the tender
- D. To ensure suppliers know the deadline for tender submission
Answer: B
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.
NEW QUESTION # 50
Kirsty is designing a specification for a new contract and wants to include some qualitive KPIs for the new supplier, as well as quantitative. Which of the following could she include? Select TWO.
- A. Early supplier involvement
- B. Cost savings
- C. Trust
- D. Information sharing
- E. Deliveries in full and on time
Answer: C,D
Explanation:
The correct answers are information sharing and trust. Further qualitative KPIs are listed on p.102. Deliveries in full and on time would be a quantitative KPI and early supplier involvement is not a KPI at all.
NEW QUESTION # 51
David is sourcing a new cleaning contract as he is not impressed with his current cleaning company's performance. He believes that his current supplier has been overcharging him, and due to budget cuts, he is keen to secure a lower price than what he is paying now. His Manager has suggested using an e-auction as the procurement method. Is this the correct way forward?
- A. Yes- an e-auction will allow David to secure the lowest possible price
- B. No- a reverse e-auction will ensure only high quality suppliers bid for the opportunity
- C. Yes- an e-auction is an electronic system so it will be easy for David to compare bids
- D. No- a reverse e-auction would be more suitable as it will secure the lowest price
Answer: D
Explanation:
The correct answer is 'No- a reverse e-auction would be more suitable as it will secure the lowest price'. An E-auction is something like eBay- where bids go up in price. If David wants to secure a lower price, he should use a Reverse E-Auction- where suppliers bid lower than the previous bid in order to win. For example, Supplier 1 offers to fulfil the contract at £50k per year, Supplier 2 can offer to beat this price by bidding £48k per year. Although Reverse E-Auctions may ensure cheaper prices, there are a lot of disadvantages to using this method. See p.21 and p.76 for more information
NEW QUESTION # 52
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
- A. suppliers are selling differentiated products
- B. competition is at its highest level possible
- C. competition is not strong
- D. there are no barriers to entry
Answer: B,D
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40
NEW QUESTION # 53
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?
- A. Employee rights
- B. Confidentiality
- C. Security
- D. Finance
Answer: B
Explanation:
Confidentiality is critical in professional relationships, especially for law firms, as they handle sensitive client information. Ensuring that all legal obligations to protect this information are met aligns with ethical and legal best practices.
NEW QUESTION # 54
Janet runs a factory which produces 1 million bread rolls every day. It requires a large amount of flour, and for this to be delivered regularly- in time with manufacturing operations. There are very few suppliers in the market place that can deliver the quality of flour Janet requires in the quantities required. Janet has just established a contract with Friendly Flour Limited - what type of supplier is Friendly Flour Limited to Janet?
- A. routine
- B. strategic
- C. bottleneck
- D. leverage
Answer: B
Explanation:
Friendly Flour Ltd is a strategic supplier; this is a critical supplier, responsible for core products. They represent a high risk impact and a high cost impact. This is the top-right hand corner of the Kraljic matrix.
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)
NEW QUESTION # 55
A buyer should concentrate their efforts on managing the start and onboarding stage of a supplier relationship by ...
* Keeping all information and plans confidential from the supplier
* Pre-qualifying and assessing the supplier's capability
* Focusing solely on the buying organisation's goals
* Building a positive and trusting relationship
- A. 1 and 2
- B. 2 and 4
- C. 1 and 3
- D. 3 and 4
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
During the onboarding stage:
* Pre-qualifying and Assessing Capability:Ensures the supplier can meet the organization's requirements.
* Building Trusting Relationships:Establishing open communication and trust sets the foundation for a successful partnership.
Keeping information confidential (Option 1) and focusing solely on the buyer's goals (Option 3) can hinder collaboration.
Reference:
"Supplier Selection Process"- CIPS: Supplier Selection
NEW QUESTION # 56
Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?
- A. Threaten the supplier with termination if he underperforms
- B. Ensure there is a damages clause in the contract
- C. Conduct regular audits
- D. Do frequent appraisals on the supplier
Answer: C
Explanation:
The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.
NEW QUESTION # 57
Achieving value for money can often be described as the three Es? What are these?
- A. Economy, Efficiency, Environment
- B. Ethics, Environment, Economy
- C. Efficiency, Economy, Ethics
- D. Effectiveness, Efficiency, Economy
Answer: D
Explanation:
The three Es are; Effectiveness, Efficiency and Economy. Sometimes a 4th E is added which is Equity (but this is mainly for the public sector).
NEW QUESTION # 58
Andrew runs a factory that makes cakes. Vanilla Extract is a vital ingredient in Andrew's cakes and this is a monopolistic market. Andrew has noticed recently that the quality of the supplier's product has reduced, and this has led to several complaints from customers. Andrew is considering entering into a Partnership with this supplier as he believes this will help increase the supplier's performance. Is this the correct thing to do?
- A. No- Andrew should outsource the vanilla extract.
- B. No- Andrew should use an alternative supplier
- C. Yes- partnership sourcing will improve sales figures
- D. Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer
Answer: D
Explanation:
The correct answer is 'Yes- partnership sourcing can improve performance which will ultimately satisfy the end customer'. The important thing to note in this Question: is the word 'monopolistic'. This means that there are no alternative suppliers- so the 'no' options are wrong- there are no alternative suppliers and no opportunity to outsource. The other answer is incorrect as sales figures isn't Andrew's concern - it's the complaints and quality of the product. Improving performance to satisfy end customers is therefore his main driver for considering a Partnership. See p. 127 for more information on Drivers of Partnership Sourcing. This comes up a lot in the exam
NEW QUESTION # 59
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?
- A. Manage them closely- they're key players in this procurement activity
- B. Minimal effort is required as they do not hold a lot of power in the business.
- C. Keep them satisfied- they will be wearing the uniform so need to be happy with it
- D. Keep them informed- it's important the housekeeping team know what's going on at each stage of the procurement
Answer: D
Explanation:
The housekeeping team have low power and high interest. According to Mendelow's stakeholder matrix, this puts them in the bottom right corner which is 'keep informed'. See p.81 for more information
NEW QUESTION # 60
......
Realistic ITCertMagic L4M6 Dumps PDF - 100% Passing Guarantee: https://www.itcertmagic.com/CIPS/real-L4M6-exam-prep-dumps.html
Free CIPS L4M6 Exam Questions and Answer: https://drive.google.com/open?id=1WK_Y5gVMIqYPMUhxtjEJixNlMoa5Ovnk