Free CIPS L4M6 Practice Exam with Questions & Answers | Set: 3

Comprehensive and Detailed Explanation:

Extending the notice period in a mutual termination for convenience clause provides the buyer with additional time to:

Identify and engage alternative suppliers

Ensure continuity of supply

Mitigate risks associated with abrupt contract termination

This proactive approach aligns with best practices in contract management, allowing for smoother transitions and minimizing potential disruptions.

Explanation

Legislative changes wouldn't affect rivalry in a market as all suppliers would be equally as affected, the same with supply chain disruptions. Factors which do affect rivalry include; industry growth and decline, product differences, brand identity, switching costs, diversity of competitors and exit barriers. These are listed on p.41

Explanation

The correct answer is ‘keep satisfied’ because the stakeholder is high power and low interest. This is the top left corner of Mendelow’s Stakeholder Matrix – see p.81

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

Defining standards ensures clear expectations and provides a foundation for accountability and alignment, which are critical for the success of any partnership.

Explanation

A PIN is a ‘prior information notice’ – it is sent out before the ITT to let suppliers know that an opportunity is coming up and they should look out for it. See p 72 “supplier identification- public sector” for more details.

Comprehensive and Detailed Explanation:

Therelationship spectrumin procurement outlines the range of relationships between buyers and suppliers, from transactional to strategic partnerships. Key types include:

Transactional:Short-term, price-focused relationships with minimal collaboration.

Partnership:Long-term, collaborative relationships with shared goals and mutual benefits.

While "contractual" refers to the legal agreement aspect of relationships, it is not a specific type on the relationship spectrum. "Conspiratorial" is not a recognized relationship type in procurement contexts.

Explanation

Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum

Explanation

The first step is to obtain business approval to terminate. If Senior Management don’t give approval, then the rest of the stages can’t happen and Sandra will be stuck with her current banana supplier. There’s a good diagram on p.109 detailing the steps to supplier termination.

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