CIPS L5M6 Questions–Reduce Your Chance of Failure [2025]

Are you an IT staff? Are you enroll in the most popular IT certification exams? If you tell me “yes", then I will tell you a good news that you're in luck. DumpTorrent's CIPS L5M6 Exam Training materials can help you 100% pass the exam. This is a real news. If you want to scale new heights in the IT industry, select DumpTorrent please. Our training materials can help you pass the IT exams. And the materials we have are very cheap. Do not believe it, see it and then you will know.

CIPS L5M6 Exam Syllabus Topics:

Topic	Details
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 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.
Topic 3	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.

>> L5M6 Test Guide Online <<

Free PDF 2025 CIPS Marvelous L5M6 Test Guide Online

DumpTorrent CIPS L5M6 exam training materials are provided in PDF format and software format. It contains CIPS L5M6 exam questions and answers. These issues are perfect, Which can help you to be successful in the CIPS L5M6 Exam. DumpTorrent CIPS L5M6 exam comprehensively covers all syllabus and complex issues. The DumpTorrent CIPS L5M6 exam questions and answers is the real exam challenges, and help you change your mindset.

CIPS Category Management Sample Questions (Q82-Q87):

NEW QUESTION # 82
Joan is a Category Manager at a packaging plant. She is creating a profile of the category she manages in order to identify the spend category. By obtaining data on her Category, which of the following will Joan be able to do?

A. Competitive supplier selection
B. Find alternative suppliers
C. Prepare projections and budgets for the future
D. Benchmarking

Answer: C

Explanation:
The first stage of Kearney's 7 Step Model is profiling the category, where data is gathered about spend, suppliers, and demand. This profiling provides the foundation for preparing future projections and budgets.
It ensures that procurement understands not only how much is currently being spent, but also the likely future requirements of the organisation. While finding alternative suppliers and benchmarking may emerge later in the process, the primary outcome of category profiling is reliable information for budgeting and strategic decision-making. This stage links procurement with financial planning and helps build business cases for category strategies. Without accurate data profiling, subsequent sourcing strategies may be flawed.
Reference: CIPS L5M6 Study Guide, p.29

NEW QUESTION # 83
Caleb is completing a risk assessment on his supply chain using a matrix categorising risks on a scale of 1-5.
He identifies one risk with a score of 2. Which category of risk would this fall into?

A. Main
B. Minor
C. Major
D. Moderate

Answer: B

Explanation:
Risk assessments in procurement often use a likelihood × severity matrix. Risks are scored on scales from 1-
5, and the scores are multiplied. A score of 2 indicates a minor risk with low impact and/or low probability.
For comparison, risks with scores in the upper range (e.g., 20-25) are considered major risks that demand immediate mitigation. Minor risks, although not ignored, are often monitored rather than heavily resourced.
This structured approach ensures procurement teams focus resources on the most significant threats while still maintaining oversight of low-level risks. By categorising risks this way, category managers create clarity for decision-makers and align procurement risk management with enterprise-wide frameworks.
Reference: CIPS L5M6 Study Guide, p.56

NEW QUESTION # 84
Peak Pricing is also known as which other type of pricing model?

A. Limit pricing
B. Dynamic pricing
C. Penetration pricing
D. Price skimming

Answer: B

Explanation:
Peak pricing is another term for dynamic pricing, where the cost of a product or service changes in response to fluctuations in demand and market conditions. A common example is airline ticket pricing, where fares increase during peak travel periods and drop during off-peak times.
Dynamic pricing relies on market data, technology, and sometimes artificial intelligence to adjust prices in real-time. It maximises revenue by capturing higher margins during periods of strong demand while stimulating sales when demand weakens.
Other options are different strategies:
* Penetration pricing involves initially low prices to gain market entry.
* Limit pricing aims to deter new entrants by setting prices low enough to discourage competition.
* Price skimming involves launching at a high price, then gradually lowering it as demand declines.
In category management, understanding pricing models like dynamic pricing helps procurement anticipate supplier pricing strategies and develop negotiation tactics.
[Ref: CIPS L5M6 Study Guide, pp.180-182 - Pricing models and procurement]

NEW QUESTION # 85
Claudio wants to limit risks from supplier financial instability. Which two actions are most effective?

A. Have contingency plans in place
B. Contract smaller businesses and start-ups
C. Limit spend with one supplier to 30% of external spend
D. Use fewer suppliers

Answer: A,C

Explanation:
The most effective approaches are:
* Limiting dependence on one supplier [B]: CIPS suggests no more than 30% of spend should be concentrated with a single supplier. This reduces exposure if that supplier becomes insolvent or fails to deliver.
* Having contingency plans [D]: Preparing alternative suppliers, safety stock, or emergency logistics ensures continuity in case of failure.
Options A and C are poor practices:
* Using fewer suppliers [A]: Increases dependency, making the business more vulnerable.
* Using small start-ups exclusively [C]: Increases risk because these firms often lack financial stability.
These strategies align with broader supply risk management principles, which focus on diversification, resilience, and proactive planning. Effective category managers must balance efficiency with risk reduction, ensuring supply continuity without over-consolidating.
[Ref: CIPS L5M6 Study Guide, p.57 - Supplier risk mitigation strategies]

NEW QUESTION # 86
On the BCG Matrix, what is a cash cow?

A. High market share, low market growth
B. High market share, high market growth
C. Low market share, low market growth
D. Low market share, high market growth

Answer: A

Explanation:
Within the Boston Consulting Group [BCG] Matrix, a Cash Cow represents a product or business unit that holds a high market share in a low-growth market. These products typically generate strong and stable cash flows because they dominate their markets with little new competition. Although growth opportunities are limited, these units require minimal investment and often fund other parts of the business.
For example, a well-established soft drinks brand in a mature market is a classic cash cow. While sales are stable and market share is high, growth potential is low due to saturation. This differs from:
* Stars [high share, high growth] which require significant investment.
* Question Marks [low share, high growth] which may or may not succeed.
* Dogs [low share, low growth] which are often candidates for divestment.
In category management, identifying cash cows helps procurement teams prioritise efficiency and cost management, ensuring these categories remain profitable without heavy strategic input.
[Ref: CIPS L5M6 Study Guide, p.117 - BCG Matrix and procurement strategy]

NEW QUESTION # 87
......

The Category Management L5M6 practice test is available in three compatible and user-friendly formats. These formats are L5M6 desktop practice test software, Category Management L5M6 web-based practice exam, and CIPS L5M6 PDF dumps file. All three formats of L5M6 study material contain actual and verified Category Management L5M6 Exam Dumps that will help you boost your exam preparation. The CIPS desktop practice test software and web-based L5M6 practice test both simulate the actual exam environment and identify your mistakes.

Exam L5M6 Simulator: https://www.dumptorrent.com/L5M6-braindumps-torrent.html

billsha257

Biography

CIPS L5M6 Questions–Reduce Your Chance of Failure [2025]

CIPS L5M6 Exam Syllabus Topics:

Free PDF 2025 CIPS Marvelous L5M6 Test Guide Online

CIPS Category Management Sample Questions (Q82-Q87):

Sign In

Register

Reset Password