CIPS L4M6 Exam Practice Test Instant Access

Question 1

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?

ARisk assessments at the premises

BMethod statements for previous contracts

CPrice that will be charged

DEnvironmental impact assessment

Answer : B

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 2

Harry has just entered into a partnership with a key supplier. Although he is excited about the prospect, he thinks it's a good idea to set some goals and KPIs. Which of the following criteria should Harry use to decide if a KPI is appropriate?

AMeasurable, achievable and relevant

BRelatable, precise, and measurable

CTime bound, difficult and relevant

DSignificant, measurable and achievable

Answer : A

The correct answer is Measurable, achievable and relevant. This is from SMART KPIs on p. 151. Smart stands for specific, measurable, achievable, relevant, time-bound. In the exam they come up in different orders so be careful.

Question 3

Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?

AITT

BAudit

CFramework

DContract

Answer : B

Tim should do an audit. P.71 of the textbook says ''to ensure that a procurement department is achieving value for money, an audit should be undertaken''

Question 4

A common reason attributed to many partnerships failing is ...

AA bad advertising campaign

BNot winning every contract they bid for

CNo contract being in place

DPoor communication

Answer : D

Poor communication leads to misunderstandings, unmet expectations, and conflict, undermining partnerships. CIPS stresses the importance of transparent and regular communication to ensure alignment and success.

Question 5

In a monopoly market, which of the following statements is true?

Abargaining power of suppliers is strong

Bbargaining power of buyers is strong

CThere is strong rivalry

DThere is a threat of new entrants

Answer : A

In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39

Question 6

According to Michael Porter, what is procurement?

Aa support activity which provides a source of competitive advantage

Ba primary activity which provides a source of competitive activity

Ca primary activity which provides value for money

Da secondary activity which provides value for money

Answer : A

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. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development

Question 7

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?

ANo, because contracts do not exist between the two companies

BNo, because they have only worked together for ten years

CYes, because they have demonstrated close collaboration on various projects

DYes, because they both operate in the food sector

Answer : C

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.

CIPS L4M6 Supplier Relationships Exam Practice Test