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Title: CIPS L5M6 Guaranteed Success with Satisfied Customers and 24/7 Support System [Print This Page]
Author: gabelee361    Time: yesterday 12:22
Title: CIPS L5M6 Guaranteed Success with Satisfied Customers and 24/7 Support System
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CIPS L5M6 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand Approaches that Can Be Used to Develop Category Management Strategies: This section of the exam measures the skills of Procurement Managers and focuses on understanding how category management strategies are formulated within procurement functions. Candidates are expected to differentiate between strategic and conventional sourcing, evaluate how these approaches support long-term supplier relationships, and align them with organizational goals. The section also emphasizes the role of category management in enhancing sourcing efficiency and achieving cost optimization.
Topic 2
  • Understand the Strategic Impact of a Category Management Process: This section evaluates the strategic insight of a Procurement Manager into how category management influences organizational performance. It explores the use of data-driven decision-making and market intelligence to shape sourcing strategies and drive sustainable procurement outcomes.
Topic 3
  • Understand the Concepts, Tools, and Techniques Associated with Managing Expenditure: This section of the exam measures the analytical abilities of a Category Analyst and focuses on expenditure management techniques within category management. It explores how organizations identify, classify, and analyze different types of spend to enhance procurement efficiency and value creation.

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CIPS Category Management Sample Questions (Q45-Q50):NEW QUESTION # 45
Teddy Ltd has created a virtual cross-functional procurement team across divisions. What could become a barrier to success?
Answer: B
Explanation:
The key barrier is language and the use of acronyms. In cross-functional, international, or virtual teams, communication challenges can hinder collaboration. Procurement often uses specialised terminology and acronyms that other functions or non-native speakers may not fully understand. This can create confusion, misalignment, and inefficiency.
Geography is less of an issue in virtual teams, as digital platforms enable collaboration across locations. Time and cost can be challenges, but the study guide specifically identifies language and acronyms as barriers.
Effective category managers overcome this by using clear, simple communication and ensuring shared understanding of procurement terms. This reduces misunderstandings and ensures that all team members- finance, engineering, operations-can contribute effectively.
Cross-functional teamwork is central to category management success, but only if barriers to collaboration are proactively addressed.
[Ref: CIPS L5M6 Study Guide, p.64 - Cross-functional teams and barriers]

NEW QUESTION # 46
Barb is a Category Manager at XYZ Logistics. She is putting together a Category Plan. Which of the following sections should she include? Select THREE.
Answer: B,D,E
Explanation:
A Category Plan is a strategic document that sets out how a category will be managed to deliver organisational objectives. It typically includes:
* Supply market analysis to understand supplier dynamics, competition, and risks.
* Category objectives, which align with organisational strategy and specify what procurement aims to achieve.
* Category risks, which outline potential threats and mitigation strategies.
HR information and a full history of the category are not required, as the plan is forward-looking, focusing on strategy rather than operational details. While historical context may be summarised in an executive overview, it does not form a full section. A well-structured Category Plan supports better decision-making, stakeholder engagement, and ensures consistent management of spend. It provides a roadmap for how value will be captured, risks managed, and supplier relationships developed. Without it, category management risks becoming reactive and fragmented.
Reference: CIPS L5M6 Study Guide, p.10

NEW QUESTION # 47
What are the three main enablers of successful Category Management?
Answer: C,D,E
Explanation:
The three key enablers are People, Tools, and Technology. Each plays a distinct but interconnected role in making category management effective:
* People: Skilled category managers and cross-functional teams provide the expertise, negotiation skills, and stakeholder engagement needed for success. Without trained professionals, strategies cannot be executed effectively.
* Tools: Analytical frameworks like Kraljic's Matrix, spend analysis, TCO, and risk assessment tools enable informed decision-making. These provide structure and evidence for procurement strategies.
* Technology: Digital platforms such as e-procurement systems, data analytics software, and supplier relationship management [SRM] tools support efficiency, transparency, and scalability.
By contrast, options such as "Place" and "Environment" are not formal enablers within CIPS's framework.
While environmental and cultural context matter, they are not listed as the three foundational enablers.
The study guide emphasises that category management can only be effective when these three enablers work together-skilled people using appropriate tools and supported by the right technology.
[Ref: CIPS L5M6 Study Guide, p.6 - Enablers of Category Management]

NEW QUESTION # 48
The objective of negotiation with a supplier is to ensure the Five Rights of Procurement. Which of the following are part of the Five Rights? Select THREE.
Answer: B,C,D
Explanation:
The Five Rights of Procurement are fundamental principles ensuring procurement delivers value. They are:
* Right product - ensuring goods/services meet requirements.
* Right quality - ensuring standards are appropriate.
* Right time - goods/services are available when needed.
* Right place - ensuring delivery is to the correct location.
* Right price - balancing cost efficiency with value.
Options B, C, and D reflect these principles. "Right supplier" and "right relationship" are not part of the traditional five rights, though they are important in broader supplier management. By aligning negotiations with the Five Rights, procurement professionals secure both operational efficiency and strategic value. These principles also provide benchmarks against which procurement performance can be measured.
Reference: CIPS L5M6 Study Guide, p.58

NEW QUESTION # 49
Bill is collecting data on a mobile phone category item. Which of the following can he find from the phone's
'line item' details? [Select TWO]
Answer: B,D
Explanation:
Line item details provide specific transactional information about a purchased product, such as the quantity ordered and the price paid. This information is critical for category managers who rely on spend data to analyse patterns, negotiate supplier agreements, and benchmark costs.
Other details such as functionality or components are not typically captured in line item data. These relate more to specifications and technical design documents rather than financial records.
By analysing line item data across multiple purchases, category managers can identify trends such as bulk- buying opportunities, price fluctuations, and supplier performance. It also assists in spend analysis, which is a fundamental step in category management for mapping categories and identifying cost-saving opportunities.
[Ref: CIPS L5M6 Study Guide, p.134 - Line item detail in spend analysis]

NEW QUESTION # 50
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