CIPS Level 4 Diploma in Procurement and Supply Certified Official Practice Test L4M6 - Aug-2026 [Q57-Q78]

CIPS Level 4 Diploma in Procurement and Supply Certified Official Practice Test L4M6 – Aug-2026 [Q57-Q78]

August 22, 2026 admin 0 Comments

Rate this post

CIPS Level 4 Diploma in Procurement and Supply Certified Official Practice Test L4M6 – Aug-2026

Ace CIPS L4M6 Certification with Actual Questions Aug 22, 2026 Updated

CIPS L4M6 exam, also known as the CIPS Supplier Relationships exam, is a crucial certification for procurement professionals looking to enhance their understanding and expertise in managing supplier relationships. L4M6 exam is designed to test the knowledge and skills of procurement professionals in building and maintaining successful supplier relationships, which are critical to the success of any organization.

QUESTION 57
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 modelling activity. This will be undertaken with a cross-organisational team of internal stakeholders and key strategic suppliers. What would be the buyer’s initial objective from the cost modelling activity?

To understand the supplier’s investment plans

To understand the supplier’s financial status

To understand the supplier’s pricing strategy

To understand the supplier’s competitive threats

The primary objective of cost modelling is to dissect and comprehend the components that constitute a supplier’s pricing. By understanding the supplier’s pricing strategy, the buyer can identify cost drivers, negotiate more effectively, and seek opportunities for cost savings. This approach aligns with the CIPS L4M6 guidelines, emphasizing the importance of transparency and collaboration in supplier relationships.

QUESTION 58
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

Manufacturing of all bicycle parts

Manufacturing of bells only

Facilities Management

Cleaning

They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their ‘core’ business so they should retain this in-house

QUESTION 59
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?

Risk assessments at the premises

Method statements for previous contracts

Price that will be charged

Environmental impact assessment

Selection criteria focus on the supplier’s capability and experience (e.g., method statements). Award criteria are used to evaluate and compare proposals during the tender process, such as price or environmental considerations.

QUESTION 60
Sugar Doughnut Ltd has a jam supplier that they have used successfully for over ten years. They have made investments in the supplier’s factory to support them with capital equipment upgrades in return for cost reduction on jam. The two companies also collaborate on bids for large supermarkets when looking to supply doughnuts and work together on quality improvements. No contracts exist between the two companies. Could this relationship be said to be a partnership relationship?

No, because contracts do not exist between the two companies

No, because they have only worked together for ten years

Yes, because they have demonstrated close collaboration on various projects

Yes, because they both operate in the food sector

The relationship qualifies as a partnership due to their collaboration, shared investments, and mutual efforts toward improvement, regardless of the absence of formal contracts. Partnerships focus on shared goals, trust, and strategic alignment rather than mere documentation.

QUESTION 61
In public sector procurement, according to EU legislation, certain items must be procured via open- competition. What type of items are these?

Items that are imported from outside the EU

Items of high value

Items of strategic importance

Items that are produced by lots of suppliers

The correct answer is ‘items of high value’. This links into the EU procurement principle of ‘Proportionality’ meaning that the procurement process must be proportionate to the value of the contract. Therefore, high value contracts must be procured via competition. What is considered ‘high value’ is decided by ‘thresholds’.
These are amended every 2 years to account for inflation etc, but you don’t need to know what the thresholds are for this exam. P.75

QUESTION 62
The Queen Victoria is a traditional British pub which serves a range of alcoholic beverages. It has a partnership relationship with a local brewery which supplies several types of beer and cider. Logistics is a key concern for the Queen Victoria as deliveries must be made when there is room in the cellar to store the barrels of beer and cider. In what ways could the logistics risk be reduced?

Using several suppliers instead of one

Batch ordering

Sharing up-to-date information

Issuing POs electronically.

The logistics risk can be reduced by ‘Sharing up-to-date information’. If the Pub tells the supplier when it’s running low, they can then time the deliveries more accurately.
P. 136. A lot of the questions on the
‘Partnerships’ chapters of the book are common-sense questions like this. It involves reading thequestion and using logic, rather than relying on your knowledge of procurement. If you found this question easy – that’s a good sign for the exam.

QUESTION 63
ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

outsource

strategic alliance

transactional

arms length

As the component is vital to their business, ABC should seek a collaborative relationship with the supplier. There are three types of collaborative relationship (co-destiny, partnership and strategic alliance). Of these only strategic-alliance is given as an option. Remember – strategic purchase = collaborative relationship with supplier. There are many questions on the Relationship Spectrum on the exam. See p.5 for more details

QUESTION 64
Which of the following are typical drivers for a partnership between the buyer and the supplier? Select the THREE that apply.

The buyer has a high spend with the supplier

There are many suppliers in the market

The product is critical for the buyer

The product is a commodity

The product is technically complex

The supplier provides the product to a buyer’s competitor

Drivers for partnership include a high spend with the supplier, criticality of the product, and technical complexity. These factors encourage collaboration for cost efficiency, quality improvement, and risk management. Partnerships are less likely when there are many suppliers or the product is a commodity, as competition and standardization reduce the need for close collaboration.

QUESTION 65
Which of the following is not a type of tender process used in the Public Sector?

Restricted

Competitive Procedure with Negotiation

Competitive Dialogue

Unrestricted

Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77

QUESTION 66
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?

bottleneck

strategic

routine

leverage

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)

QUESTION 67
In the public sector, there are many sources of information that a buyer can use to identify a suitable supplier. Which of the following could be used? Select THREE

Intranet

Tradeshows

OJEU

Internal stakeholders’ knowledge

Procurement Platforms

The correct answers are; tradeshows, internal stakeholders’ knowledge and e-procurement platforms. Intranet is incorrect as this is an internal system so you wouldn’t find information on external suppliers on here the careful not to confuse intranet with internet). OJEU is also incorrect; this is the platform on which tender opportunities in the public sector are published- its not a list of suppliers.

QUESTION 68
A partnership was created between a company and one of its local suppliers when the managing directors of each company met and thought partnering could be a good idea. No other departments were included in the discussions. The partnership has been in place for over a year, but neither of the companies has achieved any additional benefits. The company has been unable to offer any increased business to the supplier, and the supplier has been unable to improve on the quality of its products. The partnership is going to be terminated.
What is a possible main reason for the failure of the partnership?

Poor planning

Market changes

Distance barrier

Cultural differences

Partnerships require careful planning, including alignment of goals, stakeholder involvement, and clear expectations. Poor planning leads to unmet objectives and lack of value generation, as highlighted by CIPS.

QUESTION 69
Which of the following are examples of a collaborative partnering relationship? Select TWO that apply.

Adversarial

Transactional

Arm’s length

Co-destiny

Strategic alliance

Comprehensive and Detailed Explanation:
Collaborative partnering relationships are characterized by high levels of trust, mutual objectives, shared information, and long-term commitment. Among the options provided:
* Co-destiny: This represents the highest level of collaboration, where both parties’ futures are closely linked, and decisions are made jointly for mutual benefit.
* Strategic alliance: This involves a formal agreement between organizations to pursue shared objectives while remaining independent entities.
These relationship types are positioned on the collaborative end of the relationship spectrum, emphasizing joint efforts and shared success.
Reference:
CIPS L4M6 Study Guide

QUESTION 70
Which of the following are primary activities, according to Porter’s Value Chain? Select THREE.

Procurement

Operations

Marketing and Sales

Human Resources

Inbound Logistics

This question refers to Porter’s Value Chain (p.35). There’s a couple of questions on this in the exam so try to learn it. Primary activities are; inbound logistics, operations, outbound logistics, marketing and sales, after sales- service

QUESTION 71
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?

Virtual team

Finance team

Existing performing team

Cross-organisational team

Across-organisational teambrings together specialists from various departments-such as R&D, marketing, finance, and production-to collaborate on complex projects. This team structure enables diverse perspectives, innovative solutions, and efficient decision-making, which are crucial when developing and launching new products. The CIPS L4M6 guide emphasizes the importance of integrated teamwork in achieving strategic outcomes in procurement and supply chain projects.

QUESTION 72
An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?
* Where the potential pool of alternative suppliers is small
* Where the buyer has to continue working with the supplier during the termination period
* Where the buyer has adopted an arm’s-length relationship throughout the contract
* Where a material breach of the contract has been committed leading to the termination

1 and 2

1 and 3

3 and 4

2 and 3

An amicable termination approach focuses on maintaining goodwill and professionalism when ending a contract. According to CIPS guidance, it is most appropriate in situations where:
* The pool of alternative suppliers is small (1): Maintaining good relations is important to preserve future sourcing options. Burning bridges could reduce available suppliers in the future.
* The buyer must continue working with the supplier during the notice/termination period (2): An amicable approach ensures cooperation during transition and avoids disruption to operations.
By contrast:
* Arm’s-length relationships (3) are transactional and generally require less concern about relationship preservation.
* Material breaches (4) usually justify a firmer legal termination approach, rather than amicable negotiation.
Thus, the correct circumstances for an amicable style termination are 1 and 2.

QUESTION 73
Which of the following would not affect rivalry in a marketplace? Select TWO.

industry growth or decline

exit barriers

switching costs

supply chain disruption

legislative changes

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

QUESTION 74
Which of the following is an advantage for the suppler of entering into a partnership with a buyer?

They may gain an increased volume of business

There is more flexibility when selling the product

The Intellectual Property Rights of the buyer become yours

They no longer have to try as hard to win business.

The correct answer is ‘They may gain an increased volume of business’. The other options are just not true. See p.130 for advantages and disadvantages of partnerships from both the buyer and supplier’s perspective. This is a hot topic for the exam.

QUESTION 75
Which of the following relationship types are listed on the relationship spectrum?
* Partnership
* Contractual
* Transactional
* Conspiratorial

2 and 3 only

1 and 3 only

1 and 2 only

2 and 4 only

Comprehensive and Detailed Explanation:
Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:
* Transactional:Short-term, price-focused relationships with minimal collaboration.
* Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.
While “contractual” refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. “Conspiratorial” is not a recognized relationship type in procurement contexts.
Reference:
CIPS L4M6 Study Guide

QUESTION 76
A confectionery company has a portfolio of different items to sell. Their most popular product is the chocolate brownie cake, but they have begun to trial sales of cereal bars, granola cereal, and chewing gum. As a high- quality producer in a competitive market, the company requires effective supplier sourcing arrangements.
Which ONE of the following product lines would be the most suitable for partnership sourcing?

Chocolate brownie cake

Chewing gum

Cereal bars

Granola cereal

Comprehensive and Detailed Explanation:
Partnership sourcing is most appropriate for products that are critical to the buyer’s business, involve high spend, and are technically complex or require innovation. The chocolate brownie cake is the company’s most popular product, indicating high sales volume and strategic importance. Establishing a partnership with suppliers for this product can lead to benefits such as improved quality, innovation, and supply chain efficiency.
Reference:
CIPS L4M6 Study Guide

QUESTION 77
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?

yes- it is important to develop all relationships

yes- this will improve efficiencies for the buyer

no- supplier development should only be done with strategic suppliers

no- supplier development should only be done with tactical suppliers

Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14

QUESTION 78
A vehicle company has a partnering relationship with the manufacturer of its engines. The manufacturer is considered a key partner and is already involved in product development at the vehicle company in several strategic projects. The car company and engine manufacturer have integrated systems for a just-in-time (JIT) delivery. Is this an example of a significant integration partnership?

No, it is an example of a less time-intensive partnership

No, as there is a short-term focus on the relationship

Yes, as this is an example of a target costing approach

Yes, because it includes elements of joint product development

Comprehensive and Detailed Explanation:
The described relationship includes:
* Joint Product Development:Collaborative involvement in strategic projects indicates a deep partnership.
* Integrated Systems:JIT delivery systems require synchronized operations, reflecting significant integration.
These elements are hallmarks of a significant integration partnership.
Reference:
“Strategic Supply Chain Partnership”-ResearchGate: Strategic Supply Chain Partnership

Loading …

CIPS L4M6 exam is recognized internationally and is an excellent way to demonstrate your expertise in supplier management. CIPS Supplier Relationships certification is highly respected in the procurement industry and is widely recognized by employers globally. Achieving this certification demonstrates your commitment to your profession and your ability to manage supplier relationships efficiently. The CIPS Supplier Relationships exam is designed to help you develop your skills and knowledge so you can build more robust supplier relationships that deliver tangible value for your organization.

Try Free and Start Using Realistic Verified L4M6 Dumps Instantly.: https://www.topexamcollection.com/L4M6-vce-collection.html