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CIPS Level 4 Diploma in Procurement and Supply Supplier Relationships

Supplier Relationships

Last Update Feb 1, 2026
Total Questions : 263

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Questions 2

A buying organisation has decided to terminate its partnership with its supplier (FGH). For some time, the supplier has not been proactive in advising when deliveries will be late, which has frustrated the buying organisation. The supply market has historically been limited to a small number of suppliers, but new suppliers have decided that the market is attractive. The buying organisation is now considering setting up a partnership with a new supplier (XYZ) who has recently entered the market. What are the reasons for the buying organisation deciding to terminate its relationship with supplier FGH? Select TWO that apply.

Options:

A.  

Changes in the composition of the supply market

B.  

Levels of supply availability in the market have decreased

C.  

The buyer no longer believes in the value of partnership relationships

D.  

The supplier has decided that it no longer wishes to keep the buying organisation as a customer

E.  

Poor communication by the supplier

Discussion 0
Questions 3

An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?

    Where the potential pool of alternative suppliers is small

    Where the buyer has to continue working with the supplier during the termination period

    Where the buyer has adopted an arm's-length relationship throughout the contract

    Where a material breach of the contract has been committed leading to the termination

Options:

A.  

1 and 2

B.  

1 and 3

C.  

3 and 4

D.  

2 and 3

Discussion 0
Questions 4

A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?

Options:

A.  

Partnering relationship

B.  

Cost-based relationship

C.  

Quality-based relationship

D.  

Traditional contracting relationship

Discussion 0
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Questions 5

Which of the following is a characteristic of a partnership?

Options:

A.  

Emphasis on mutual trust between purchaser and supplier

B.  

Emphasis on multiple sourcing

C.  

Emphasis on quality checking products by inspection on delivery

D.  

Emphasis on unit price and looking at lowest cost

Discussion 0
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