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[General] Latest CIPS L5M6 Exam Bootcamp | Valid L5M6 Test Blueprint

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【General】 Latest CIPS L5M6 Exam Bootcamp | Valid L5M6 Test Blueprint

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CIPS L5M6 Exam Syllabus Topics:
TopicDetails
Topic 1
  • 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 2
  • 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 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 (Q32-Q37):NEW QUESTION # 32
Frankie Burgers operates in the UK and USA. One supplier holds a monopoly, but the item supplied is low cost. According to the Kraljic Matrix, which type of item is this?
  • A. Routine
  • B. Bottleneck
  • C. Leverage
  • D. Strategic
Answer: B
Explanation:
This item is classified as a Bottleneck item in the Kraljic Portfolio Matrix. Bottleneck items are low-value in terms of spend but carry high supply risk, often because there are very few suppliers or a monopoly situation.
In this case, Frankie Burgers faces a monopoly supplier, meaning supply risk is high. Even though the item is low cost, its unavailability could disrupt operations, creating significant vulnerability.
By contrast:
* Leverage items are high-value but low risk, suited for competitive sourcing.
* Strategic items are high-value and high-risk, requiring partnerships.
* Routine items are low-value and low-risk, suitable for automated procurement.
Category managers facing bottleneck items often mitigate risk through strategies such as developing alternative suppliers, stockpiling, or long-term contracts to secure continuity of supply.
[Ref: CIPS L5M6 Study Guide, p.157 - Kraljic Matrix applications]

NEW QUESTION # 33
Which of the following are legal aspects of a contract a Procurement Manager should know?
  • A. Sustainability
  • B. Liabilities
  • C. Intellectual Property
  • D. Relationship management
  • E. TUPE
Answer: B,C,E
Explanation:
The three correct legal aspects are:
* Liabilities [C]: Define responsibility for damages, breaches, or non-performance.
* Intellectual Property [D]: Protects innovations, designs, and brand assets in supplier agreements.
* TUPE [E]: Transfer of Undertakings [Protection of Employment], a UK law ensuring employees retain rights when transferred between companies.
While sustainability and relationship management are important procurement considerations, they are not specifically legal aspects of contracts. Legal knowledge ensures procurement professionals protect their organisations from financial, reputational, and operational risks.
TUPE is particularly relevant in outsourcing agreements, where staff may move from one employer to another. Procurement managers must ensure compliance with local employment laws to avoid legal disputes.
CIPS stresses that category managers should not act as lawyers but must have sufficient legal awareness to identify risks and escalate issues to legal specialists.
[Ref: CIPS L5M6 Study Guide, p.57 - Legal aspects in procurement contracts]

NEW QUESTION # 34
What name is given to an item or business which has both low market share and low growth?
  • A. Cash cow
  • B. Question mark
  • C. Dog
  • D. Star
Answer: C
Explanation:
In the BCG Growth-Share Matrix, a dog is a business unit or product that has both a low relative market share and a low growth rate. Such items typically generate low or no profits and are often seen as candidates for divestment or discontinuation. Unlike cash cows which generate strong cash flow despite slow growth, or stars which dominate high-growth markets, dogs occupy a weak position in the portfolio. Managing these categories strategically is critical because maintaining them often consumes more resources than the value they return. Organisations need to assess whether retaining these products provides any strategic advantage, such as complementing other offerings, or whether resources should be reallocated. This is why category managers use tools like the BCG Matrix to evaluate the positioning of spend categories and align them with organisational strategy.
Reference: CIPS L5M6 Study Guide, p.117

NEW QUESTION # 35
When completing a tender exercise, in addition to price and quality, which factors may also be considered?
  • A. CSR
  • B. TCO
  • C. PQQ
  • D. ITT
Answer: A
Explanation:
The correct answer is CSR [Corporate Social Responsibility]. In modern procurement, tenders are no longer evaluated solely on price and quality. Organisations increasingly consider ethical, environmental, and sustainability performance as part of supplier evaluation. CSR factors include labour practices, carbon footprint, use of sustainable materials, and compliance with ethical trading standards.
Other options represent different procurement tools but are not additional evaluation factors:
* TCO [Total Cost of Ownership]: A financial analysis tool, not a tender factor.
* ITT [Invitation to Tender]: A formal document, not a factor.
* PQQ [Pre-Qualification Questionnaire]: Used for initial supplier screening, not tender evaluation.
Integrating CSR into tenders reflects the wider move towards responsible procurement. It ensures suppliers align with the buyer's values and long-term risk management priorities.
[Ref: CIPS L5M6 Study Guide, p.39 - CSR considerations in tenders]

NEW QUESTION # 36
According to studies completed by Reeves, Moose and Venema in 2014, which of the following was proven to be true with regards to the BCG matrix?
  • A. Products move through the four quadrants faster nowadays than in the past
  • B. There is a higher correlation between share leaders and profit leaders nowadays than in the past
  • C. Companies nowadays have more 'cash cow' items than in the past
  • D. There is a longer time between innovation and adoption nowadays than in the past
Answer: A
Explanation:
Reeves, Moose and Venema (2014) established that products move through the four quadrants of the BCG matrix more quickly in the modern business environment compared to the past. This is a reflection of faster innovation cycles, market saturation, and increased competition. The other three statements are the opposite of what their research proved.
Reference: CIPS L5M6 Study Guide, p.120

NEW QUESTION # 37
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