Certification L5M7 Sample Questions - 100% Newest Questions Pool

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CIPS L5M7 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand the Dynamics of Supply Chains: This section of the exam measures the skills of Supply Chain Analysts and covers the foundational understanding of how supply chains operate, interact, and add value to organizations. It examines the differences between supply chains, supply networks, and supply chain management while exploring the concept of supplier tiering and network sourcing. Candidates are expected to understand how effective supply chain management improves quality, reduces costs and lead times, and fosters innovation while mitigating risks. Additionally, this section emphasizes the connection between an organizational infrastructure, culture, and process management in achieving efficient supply chains. It also compares various improvement approaches, including collaborative and competitive models, outsourcing, offshoring, and global procurement.
Topic 2	Understand Measures Required to Achieve Competitive Advantage in Supply Chains: This section of the exam measures the skills of Strategic Sourcing Specialists and focuses on achieving and maintaining competitive advantage through strategic supply chain practices. It assesses knowledge of how organizations can leverage cost leadership or differentiation strategies to outperform competitors. Candidates are expected to understand pricing mechanisms such as fixed and variable pricing, open book costing, and risk reward arrangements that drive efficiency and transparency. The section also includes cost reduction techniques like supplier rationalization, value analysis, and negotiation strategies that enhance profitability. Finally, it examines collaborative approaches such as partnership sourcing, building supplier trust, and managing relationship life cycles to ensure long-term strategic advantages within the supply chain.
Topic 3	Understand Improvement Methodologies that Can Be Used in Supply Chains: This section of the exam measures the skills of Procurement Managers and focuses on the tools and methodologies used to enhance supply chain performance and efficiency. It highlights the principles of total quality management (TQM), including quality assurance and inspection, and their role in ensuring product and process consistency. Candidates must understand how to use statistical methods such as KPIs, data analysis, and Six Sigma to drive continuous improvement. The section also explores lean thinking, agile processes, Just-in-Time (JIT) systems, and the 5S methodology as frameworks for optimizing operations. Furthermore, it covers the application of business process re-engineering (BPR) and benchmarking to evaluate and redesign supply processes for better performance and competitiveness.

CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q71-Q76):

NEW QUESTION # 71
Within the supply chain, which of the following isnot considered a 'flow'?

A. Decision flow
B. Materials flow
C. Information flow
D. Financial flow

Answer: A

Explanation:
Supply chains are characterised bythree primary flows- materials, information, and finance. "Decision flow" is not a recognised category.
Short cited term: "three main flows: material, information, finance." (L5M7 Study Guide, p. 155) Reference:CIPS L5M7 Study Guide, p. 155.

NEW QUESTION # 72
Which of the following is an example ofexceedingcustomers' expectations? Select TWO.

A. The price is lower than the customer expected to pay
B. Providing the item desired in a different colour
C. A customer orders an item online and it is delivered on the expected day
D. Providing a free gift when a purchase is made

Answer: A,D

Explanation:
Meeting expectations (B) is not exceeding them. Exceeding is demonstrated byunexpected extra valuesuch as lower-than-expected priceora free add-on. Short extract: "exceeding expectations-delighting customers with additional/unexpected value." (L5M7 Study Guide, p.121) Reference:L5M7 Study Guide, p.121.

NEW QUESTION # 73
Which of the following statements aboutsupply chain knowledgeis correct? Select TWO.

A. Where supply chain knowledge is low, members tend to operate independently of others.
B. Where technology utilisation is low, systems and policies are consistent.
C. Where supply chain knowledge is low, there is high collaboration with partners.
D. Where there is high readiness to use technology, IT use is deliberate and structured.

Answer: A,D

Explanation:
Whenknowledge is low, members workindependently; highertechnological readinesscreates deliberate and structured IT use.
Short cited term: "low knowledge # independent working; high tech readiness # structured IT use." (L5M7 Study Guide, p. 51) Reference:CIPS L5M7 Study Guide, p. 51.

NEW QUESTION # 74
George, a property manager, agrees acost-pluspayment with a plumber. Which of the following will he need to know to calculate total price?
Select THREE.

A. Supplier's pension contribution
B. Cost of materials
C. Supplier's tax rate
D. Supplier's overhead and profit
E. Cost of labour

Answer: B,D,E

Explanation:
Cost-plus pricingis based onactual material and labour costs plus an agreed marginfor overheads and profit.
Short cited extract: "Cost-plus = actual cost + agreed mark-up for profit/overheads." (L5M7 Study Guide, p.
191)
Reference:CIPS L5M7 Study Guide, p.191.

NEW QUESTION # 75
Which of the following relationship styles has theleast amount of trust?

A. Closer Tactical
B. Transactional
C. Partnership
D. Outsourced

Answer: B

Explanation:
Therelationship spectrumshows thattransactional relationshipsare theleast trust-based, focusing on short- term exchanges with minimal collaboration.
Short cited extract: "Transactional - low trust, short-term, low collaboration." (L5M7 Study Guide, p.80) Reference:CIPS L5M7 Study Guide, p.80.

NEW QUESTION # 76
......

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Certification L5M7 Sample Questions - 100% Newest Questions Pool

L5M7 Reliable Cram Materials & Reliable L5M7 Exam Online

CIPS L5M7 Exam Syllabus Topics:

CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q71-Q76):

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