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[General] Free PDF Quiz CIPS - L5M6 - Category Management–Professional Test Collection Pdf

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【General】 Free PDF Quiz CIPS - L5M6 - Category Management–Professional Test Collection Pdf

Posted at 1/21/2026 23:50:54      View：48 | Replies：1        Print      Only Author   [Copy Link] 1#
P.S. Free & New L5M6 dumps are available on Google Drive shared by BraindumpQuiz: https://drive.google.com/open?id=1nBelnn9fQMuY4l7mL72izEhQRd-7wYGX
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CIPS Category Management Sample Questions (Q31-Q36):NEW QUESTION # 31
Which of the following approaches to managing cost, common in Category Management, results in the most reduced costs from suppliers and increased value?
  • A. Cost-down
  • B. Price acceptance
  • C. Cost-out
  • D. Price management
Answer: C
Explanation:
Cost-out is the most effective approach for reducing supplier costs while increasing value. It involves redesigning products or services collaboratively with suppliers to eliminate costs before they occur. For example, altering product design to use fewer materials can reduce overall costs without compromising quality. This differs from price acceptance (simply accepting a supplier's offer), price management (controlling or negotiating pricing), or cost-down (gradual cost reduction). Cost-out is proactive and strategic, focusing on long-term value creation rather than short-term savings. For category managers, adopting cost-out strategies requires close supplier collaboration, innovation, and joint investment in process improvements.
Reference: CIPS L5M6 Study Guide, p.79

NEW QUESTION # 32
'Kaizen' is a Japanese term used frequently in the manufacturing industry. What does it refer to?
  • A. Sustainability
  • B. Cost Reduction
  • C. Supplier Relationship Management
  • D. Continuous Improvement
Answer: D
Explanation:
Kaizen translates to "continuous improvement" in Japanese. It is a philosophy that encourages making small, incremental changes that collectively lead to significant performance enhancements over time. Within procurement and category management, Kaizen focuses on ongoing collaboration with suppliers to identify ways to reduce waste, improve quality, and optimise processes. Unlike one-off cost-reduction initiatives, Kaizen is embedded in the organisational culture and requires engagement from all levels of the supply chain.
For example, small adjustments in packaging design might reduce material use, leading to cost savings and environmental benefits. This approach fosters long-term supplier partnerships and supports innovation. In competitive markets, organisations that adopt Kaizen are more resilient and adaptable, making it a key concept for category managers to understand.
Reference: CIPS L5M6 Study Guide, p.40

NEW QUESTION # 33
ABC Ltd wishes to ensure compliance across its supply chain.
Which of the following are steps that can be taken to ensure compliance with regulations and standards including CSR?
  • A. Only work with large suppliers who have a CSR policy
  • B. Make ethics and compliance a priority when qualifying new suppliers
  • C. Communicate the company's values across the supply chain
  • D. Do not work with suppliers in low-cost countries
Answer: B,C
Explanation:
* Making ethics and compliance a priority [B] ensures supplier selection considers regulatory and social responsibility aspects.
* Communicating values across the supply chain [C] builds alignment and accountability.
A and D are incorrect because having a CSR policy doesn't guarantee practice, and low-cost country sourcing does not automatically mean non-compliance.
[Ref: CIPS L5M6 Study Guide, p.107 - Ensuring compliance in supply chains]

NEW QUESTION # 34
In Category Management, which of the following Models can be used for creating a step-by-step plan for Strategic Sourcing?
  • A. Kearney's 7 Step Model
  • B. Porter's 5 Forces
  • C. The Pareto Principle
  • D. Kraljic Matrix
Answer: A
Explanation:
Kearney's 7 Step Strategic Sourcing Model provides a structured, step-by-step approach for managing sourcing activities. The steps include profiling the category, assessing the supply market, developing sourcing strategies, and implementing them. This model ensures that sourcing is systematic, evidence-based, and aligned with strategic objectives. Unlike tools such as the Kraljic Matrix, which classifies items by risk and impact, Kearney's model provides an end-to-end process framework for sourcing execution. Similarly, Pareto and Porter's 5 Forces are useful analytical tools but not procedural sourcing frameworks. For category managers, the Kearney Model is valuable because it emphasises cross-functional collaboration, data-driven decision-making, and continuous improvement. Its structured approach reduces risks of ad-hoc decision- making and ensures alignment with organisational goals. This is why it is a central feature of L5M6 study material and often tested in exams.
Reference: CIPS L5M6 Study Guide, p.28-29

NEW QUESTION # 35
Penelope works for an international manufacturer. Which categories are most likely to be outsourced?
  • A. Raw materials
  • B. Facilities management
  • C. Marketing services
  • D. Operations
  • E. Warehousing
Answer: B,C
Explanation:
The categories most likely to be outsourced are Marketing services and Facilities Management [FM].
These are examples of indirect spend categories where external providers often offer specialist expertise, cost efficiency, and scalability.
CIPS identifies five indirect categories frequently outsourced: Marketing, Facilities Management, IT
/Communications, Human Resources, and MRO [Maintenance, Repairs, Operations]. Outsourcing these allows organisations to focus internal resources on core competencies such as manufacturing or R&D.
Raw materials, warehousing, and operations are typically core to production and therefore managed internally or strategically sourced, rather than fully outsourced. While warehousing may sometimes be outsourced
[3PL], it is not listed among the primary categories in the study guide.
Outsourcing decisions must balance cost, risk, and strategic importance. For example, outsourcing FM reduces overheads while ensuring professional management of buildings and services, whereas marketing agencies provide creativity and campaign expertise.
[Ref: CIPS L5M6 Study Guide, pp.46-47 - Categories commonly outsourced]

NEW QUESTION # 36
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