CIPS L4M6 SUPPLIER RELATIONSHIP EXAM
STUDY GUIDE BUNDLE RATED A STUDY
GUIDE QUESTIONS AND SOLUTIONS 2026
CORRECT ANSWERS GRADED A+
⩥ What do internal stakeholders include? Answer: Internal end users,
contract managers, legal team, employees.
⩥ What do connected stakeholders include? Answer: Suppliers,
Customers and clients
⩥ What do external stakeholders include? Answer: Competitors,
communities, government and other public agencies
⩥ What is the definition of value for money? Answer: The most
advantageous combination of price and quality that makes a product or
service fit for purpose and will achieve the buyer's required outcomes.
This needs to be reviewed in terms of whole life costs.
⩥ Value for money is often described as the three E's, what are the three
E's? Answer: Economy, Efficiency, Effectiveness
,⩥ What are typical factors taken into account in defining value for
money? Answer: Fitness for purpose, quality, total lifetime costs, risk,
environmental and sustainability issues.
⩥ Creating value for money with competition. Answer: In the public
sector there are legal rules to support the creation of value for money,
transparency and fairness.
⩥ What can happen when there is a lack of compliance with
procurement processes and procedures? Answer: Lack of contract
coverage, Maverick buying activity, May end up with a product or
service that is unfit for purpose, procurement activity is not assessed and
managed in a consistent way.
⩥ How can procurement add value when understanding the need?
Answer: Make or buy decision, support the formation of a cross-
departmental team to develop the specification, review where branded
products could be replaced by substitute non-branded products or
materials to reduce costs, encourage standardisation
⩥ What is value mapping? Answer: A process in which value is created
by reducing or eliminating waste and operational inefficiencies.
⩥ What are the seven wastes? (TIMWOOD) Answer: Transportation,
Inventory, motion, Waiting, Over production, over processing, defects.
, ⩥ How can can value be added through a strategic approach? Answer: -
Review spend across various areas
-Following on from spend reviews they could aggregate demand and
consolidate spend.
-Supplier relationship management and risk management plans
-Specialist category and supplier knowledge.
⩥ Added value through suppler relationships Answer: -Being able to
identify and use an appropriate approach to deal with supplier.
-Innovation developed as part of collaborative projects with strategic
suppliers
-Reduction of waste
-Resilience and risk reduction
⩥ What are sources of information that a buyer can use to identify a
suitable supplier? Answer: Internal stakeholders/user department
knowledge, preferred supplier lists, internet searches, networking.
⩥ Supplier identification in the private sector? Answer: The private
sector buyer is free to invite as many suppliers to participate as it feels
are relevant.
⩥ Supplier identification in the public sector? Answer: Supplier
identification in the public sector is a more transparent process than in
the private sector. In the public sector in the EU the buyer will be
STUDY GUIDE BUNDLE RATED A STUDY
GUIDE QUESTIONS AND SOLUTIONS 2026
CORRECT ANSWERS GRADED A+
⩥ What do internal stakeholders include? Answer: Internal end users,
contract managers, legal team, employees.
⩥ What do connected stakeholders include? Answer: Suppliers,
Customers and clients
⩥ What do external stakeholders include? Answer: Competitors,
communities, government and other public agencies
⩥ What is the definition of value for money? Answer: The most
advantageous combination of price and quality that makes a product or
service fit for purpose and will achieve the buyer's required outcomes.
This needs to be reviewed in terms of whole life costs.
⩥ Value for money is often described as the three E's, what are the three
E's? Answer: Economy, Efficiency, Effectiveness
,⩥ What are typical factors taken into account in defining value for
money? Answer: Fitness for purpose, quality, total lifetime costs, risk,
environmental and sustainability issues.
⩥ Creating value for money with competition. Answer: In the public
sector there are legal rules to support the creation of value for money,
transparency and fairness.
⩥ What can happen when there is a lack of compliance with
procurement processes and procedures? Answer: Lack of contract
coverage, Maverick buying activity, May end up with a product or
service that is unfit for purpose, procurement activity is not assessed and
managed in a consistent way.
⩥ How can procurement add value when understanding the need?
Answer: Make or buy decision, support the formation of a cross-
departmental team to develop the specification, review where branded
products could be replaced by substitute non-branded products or
materials to reduce costs, encourage standardisation
⩥ What is value mapping? Answer: A process in which value is created
by reducing or eliminating waste and operational inefficiencies.
⩥ What are the seven wastes? (TIMWOOD) Answer: Transportation,
Inventory, motion, Waiting, Over production, over processing, defects.
, ⩥ How can can value be added through a strategic approach? Answer: -
Review spend across various areas
-Following on from spend reviews they could aggregate demand and
consolidate spend.
-Supplier relationship management and risk management plans
-Specialist category and supplier knowledge.
⩥ Added value through suppler relationships Answer: -Being able to
identify and use an appropriate approach to deal with supplier.
-Innovation developed as part of collaborative projects with strategic
suppliers
-Reduction of waste
-Resilience and risk reduction
⩥ What are sources of information that a buyer can use to identify a
suitable supplier? Answer: Internal stakeholders/user department
knowledge, preferred supplier lists, internet searches, networking.
⩥ Supplier identification in the private sector? Answer: The private
sector buyer is free to invite as many suppliers to participate as it feels
are relevant.
⩥ Supplier identification in the public sector? Answer: Supplier
identification in the public sector is a more transparent process than in
the private sector. In the public sector in the EU the buyer will be
