Quiz 2026 CIPS L5M7: Achieving Competitive Advantage Through the Supply Chain (L5M7) Accurate High Quality

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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 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.
Topic 3	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.

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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q18-Q23):

NEW QUESTION # 18
Total Quality Management (TQM)is a long-term strategy. Is this TRUE?

A. No - TQM makes a firm more Lean short-term
B. No - TQM is a short-term efficiency strategy
C. Yes - effort is required in the short and medium term; results may not be immediate
D. Yes - TQM requires at least one year to implement

Answer: C

Explanation:
TQMis along-term philosophydemanding sustained commitment; benefits emerge gradually through continuous improvement.
Short cited extract: "TQM is a long-term commitment where results may not be immediate." (L5M7 Study Guide, p. 118) Reference:CIPS L5M7 Study Guide, p. 118.

NEW QUESTION # 19
Long runs, stable product design, and inventory buffers are objectives of which business function?

A. Manufacturing
B. Logistics
C. Sales
D. Sourcing

Answer: A

Explanation:
Manufacturing objectivesemphasise efficiency throughlong production runs,stable design, andinventory bufferingto ensure continuity of output.
Short cited term: "manufacturing - long runs and inventory buffer." (L5M7 Study Guide, p. 36) Reference:CIPS L5M7 Study Guide, p. 36.

NEW QUESTION # 20
Guppy Fish Ltd manufactures machinery. A rival is releasing automated technology that could replace manual operation. What type of threat does this pose?

A. Threat of new entrants
B. Bargaining power of suppliers
C. Threat of artificial intelligence
D. Bargaining power of buyers

Answer: A

Explanation:
According toPorter's Five Forces, new automated competitors represent athreat of new entrants, introducing innovation and market pressure.
Short cited extract: "New entrants increase competition and threaten existing players." (L5M7 Study Guide, p.
56)
Reference:CIPS L5M7 Study Guide, p.56.

NEW QUESTION # 21
In a confectionery factory, quality inspection occurs before packaging. If a product is found defective, which type ofcost of qualityis incurred?

A. External failure cost
B. Internal failure cost
C. Appraisal cost
D. Prevention cost

Answer: B

Explanation:
Defects discoveredbefore dispatchare classified asinternal failures, including rework, scrap, or re-inspection.
Short cited term: "internal failure = defects found before reaching customer." (L5M7 Study Guide, p. 128) Reference:CIPS L5M7 Study Guide, p. 128.

NEW QUESTION # 22
According to theSupply of Goods and Services Act (1982), which of the following isnota legal description of quality?

A. Durability
B. Free from all defects
C. Fit for purpose
D. Safety

Answer: B

Explanation:
The Act defines quality as products beingfit for purpose,as described,safe, anddurable. It doesnot guarantee freedom from every defect.
Short cited term: "fit for purpose, safe, durable - but not free from all defects." (L5M7 Study Guide, relevant section on statutory quality standards) Reference:CIPS L5M7 Study Guide, Quality and Legislation section (Domain 2.1).

NEW QUESTION # 23
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Quiz 2026 CIPS L5M7: Achieving Competitive Advantage Through the Supply Chain (L5M7) Accurate High Quality

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Quiz 2026 CIPS L5M7: Achieving Competitive Advantage Through the Supply Chain (L5M7) Accurate High Quality

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