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L5M7 Dumps - Achieving Competitive Advantage Through the Supply Chain (L5M7) Exam Questions [2026]
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CIPS Achieving Competitive Advantage Through the Supply Chain (L5M7) Sample Questions (Q12-Q17):
NEW QUESTION # 12
Which of the following can have adetrimental effecton supply-chain relationships?Select TWO.
- A. Market segment
- B. Mistrust
- C. Low spend
- D. Lack of feedback
Answer: B,D
Explanation:
Relationship effectiveness is damaged bymistrustand poorfeedback/communication. Spend level alone is not inherently harmful if expectations are aligned. Short cited terms: "trust," "communication/feedback" (L5M7 Study Guide, p.93).
Reference:CIPS L5M7 Study Guide, p.93.
NEW QUESTION # 13
Where two organisations atdifferent levelsof the supply chain share responsibilities, resources, and performance information to serve similar end customers, what is this known as?
- A. Horizontal collaboration
- B. Loose supply chain collaboration
- C. Tight supply chain collaboration
- D. Vertical collaboration
Answer: D
Explanation:
Vertical collaborationoccursbetween different tiers(e.g., buyer-supplier) to coordinate capabilities for customer value. Short cited term: "vertical collaboration ... different levels/tiers" (L5M7 Study Guide, p.90).
Reference:CIPS L5M7 Study Guide, p.90.
NEW QUESTION # 14
Which of the following departments within an organisation form part of theValue Chain?
Select THREE.
- A. Procurement
- B. Logistics
- C. Human Resources
- D. Operations
- E. Marketing
Answer: B,D,E
Explanation:
According toMichael Porter's Value Chain,primary activitiesincludeinbound logistics, operations, outbound logistics, marketing and sales, and service.Procurement and HRaresupport activities.
Short cited term: "primary activities - logistics, operations, marketing and sales" (L5M7 Study Guide, p. 76).
Reference:CIPS L5M7 Study Guide, p. 76.
NEW QUESTION # 15
Which of the following is an example of aCapital Expenditurefor a private healthcare facility?
- A. Cleaning Products
- B. Medicine
- C. MRI Machine
- D. Nurse's Salary
Answer: C
Explanation:
Capital expenditure (CapEx)coverslong-term investmentssuch as equipment or infrastructure that deliver value over time-e.g., MRI scanners. Operating costs (OpEx) include salaries and consumables.
Short cited extract: "CapEx - major assets and equipment; OpEx - running costs such as wages." (L5M7 Study Guide, Domain 3.2) Reference:CIPS L5M7 Study Guide, Domain 3.2.
NEW QUESTION # 16
Which of the following areadvantages of using local sourcing? Select TWO.
- A. Less environmental impact
- B. Flexibility for support and maintenance
- C. Higher costs
- D. Cheaper
- E. Higher quality
Answer: A,B
Explanation:
Local sourcingoffersenvironmental benefits(lower transport footprint) andeasier access for service or maintenance, enhancing responsiveness.
Short cited extract: "Local sourcing provides reduced environmental impact and proximity for support." (L5M7 Study Guide, p. 70) Reference:CIPS L5M7 Study Guide, p. 70.
NEW QUESTION # 17
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