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CIPS Supplier Relationships L4M6 Exam
Questions and Answers 100% Pass
What is a connected stakeholder? - Answer✔A stakeholder that has a strong interest in a
company's activities. This is due to its contractual or commercial relationship with the
company.
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
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
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
2
CIPS Supplier Relationships L4M6 Exam
Questions and Answers 100% Pass
What is a connected stakeholder? - Answer✔A stakeholder that has a strong interest in a
company's activities. This is due to its contractual or commercial relationship with the
company.
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
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
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
2
