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

Explanation

The Kraljic model "plays a key part in category management" p.19 of the textbook. Category Management = the spend in an organisation, broken down into categories of related products (e.g. IT, facilities management, marketing). Each of these categories could be plotted on the Kraljic Matrix.

The relationship spectrum describes the range of possible supplier relationship types, from arm’s-length transactional relationships to strategic partnerships.

CIPS explains that buyers should segment their supplier base and apply the most appropriate relationship type to:

Maximise value

Manage risk

Allocate resources effectively

The other options describe activities or tools, not the concept of classifying supplier relationships.

L4M6 Reference:

Learning Outcome 3: Understand approaches to managing supplier relationships

Topic: Relationship spectrum and supplier segmentation

CIPS L4M6 Study Guide – Supplier relationship models

Partnerships emphasize collaboration, shared risks, and mutual benefits. Unlike adversarial or transactional relationships, they focus on long-term goals and joint value creation.

Explanation

The correct answers are; They are likely to be able to gain price stability and There may be greater continuity of supply. The other options are an advantage for the supplier rather than the buyer (They will gain an increased volume of business) and a disadvantage of entering into a partnership (The supplier may become complacent). As you may have guessed from these questions – Partnerships come up a LOT in the exam. See p.130 for info on pros and cons of partnerships.

Partnership sourcing is suitable for products that contribute to the buying organization's unique selling point (USP) and for critical products on which key customers depend. This approach ensures strategic alignment and mutual benefits for both parties, focusing on collaboration rather than cost alone.

Setting minimum standards helps filter suppliers efficiently, ensuring that only capable and reliable suppliers are considered. This approach supports both cost and quality objectives.

Adding value involves enhancing customer experience through excellent service, providing differentiated product features, and offering convenience. These align with procurement strategies aimed at driving customer satisfaction and loyalty.

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