Pass the CIPS CIPS Level 4 Diploma in Procurement and Supply L4M6 Questions and answers with CertsForce

Routine suppliers typically supply low-value, low-risk items. Maintaining partnerships in such cases is inefficient since alternative suppliers are readily available. Adopting a transactional or adversarial relationship would be more appropriate.

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.

Comprehensive and Detailed Explanation:

Partnerships between buyers and suppliers are often driven by:

High Spend:Significant expenditure justifies the investment in developing a closer relationship to achieve cost savings and efficiencies.

Critical Products:Items that are essential to the buyer's operations necessitate a reliable and collaborative supplier relationship.

Technical Complexity:Complex products benefit from joint development efforts, shared expertise, and coordinated problem-solving.

Conversely, commodities and markets with many suppliers typically lend themselves to transactional relationships rather than partnerships.

Comprehensive and Detailed Explanation:

Developing a new blood collection system is a complex task that requires specialized knowledge and expertise. A partnership allows the supplier to collaborate closely with a clinical expert, combining their respective strengths to innovate effectively. This collaborative approach is essential for technically complicated supplies where joint development efforts can lead to better outcomes.

Explanation

The correct answer is ‘Yes- the Public Sector is regulated by EU procurement regulations which prohibits this’. This is stated on p.122. Please note that this study guide and exam were written before Brexit. Once Brexit happens, nobody knows what will happen with this.

Explanation

Note the word ‘NOT’ in the question. In order for a competitive tender to be successful, there should be a clear specification in place (i.e. you need to know what you want, in order for suppliers to bid for it). Competitive tendering should also only be used for high value purchases; it’s time consuming to do, so you wouldn’t do it for low value items such as pens for the office. Therefore the correct answer to this question is 'items are of low value' and 'there isn’t a clear specification'. There’s a useful table on p.73 of when you would and wouldn’t use a competitive tender.

Explanation

Richie should do a Force Field Analysis – this is explained on p.86 and is an idea of Kurt Lewin – it identifies the driving forces for a project and the restraining forces (basically who will be for it and who will be against it). The textbook doesn’t go into much detail on this but there are questions on it in the exam- so have a quick google to familiarise yourself with Kurt Lewin’s Force Field Analysis.

Arranging a meeting to clarify roles and setting performance targets provides clear expectations and encourages accountability. This aligns with CIPS guidelines on managing conflicts through constructive engagement.

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.

Comprehensive and Detailed Explanation:

Joint venturesandstrategic alliancesare common forms of partnerships between companies:

Joint Venture:A business arrangement where two or more parties agree to pool their resources for a specific task, creating a new entity.

Strategic Alliance:An agreement between companies to pursue objectives while remaining independent organizations.

"Sole trader," "limited company," and "public limited company" refer to business structures, not partnership arrangements.