Free CIPS L4M6 Exam Braindumps (page: 21)

A buyer is intending to purchase a new product for their business; however, the market has a large number of suppliers.
What would be the most beneficial way for them to initially narrow down the supply options?

  1. Look at lowest-cost suppliers only
  2. Predefine minimum standards suppliers must meet
  3. Go only to companies they have bought other products from
  4. Preselect companies who have the largest market share

Answer(s): B

Explanation:

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



Which one of the following is an advantage of early supplier involvement?

  1. Supplier is responsible for all intellectual property risks
  2. Large investment in supplier communications
  3. Understanding of supplier capabilities
  4. No need for supplier non-disclosure agreements

Answer(s): C

Explanation:

Early supplier involvement highlights supplier strengths and capabilities, enabling collaborative development. This supports innovation and optimizes the procurement process.



A law firm is ending an agreement with a client they have represented for many years.
What is the most important legal consideration to be taken before terminating?

  1. Employee rights
  2. Confidentiality
  3. Finance
  4. Security

Answer(s): B

Explanation:

Confidentiality is critical in professional relationships, especially for law firms, as they handle sensitive client information. Ensuring that all legal obligations to protect this information are met aligns with ethical and legal best practices.



When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

  1. There are few substitute products
  2. The product is highly differentiated
  3. There is potential for backward integration
  4. The switching costs are high
  5. The volume purchased is not important
  6. The product is undifferentiated

Answer(s): A,B,D

Explanation:

Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.



Viewing page 21 of 46
Viewing questions 81 - 84 out of 226 questions



Post your Comments and Discuss CIPS L4M6 exam prep with other Community members:

L4M6 Exam Discussions & Posts