CIPS Exam L4M6 Topic 8 Question 18 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 18
Topic #: 8

[All L4M6 Questions]

ABC is a company which sources a vital component from a supplier. There are only a few suppliers in the industry and without this component, ABC would not be able to produce their final product. What type of relationship should ABC seek to develop with their supplier?

Aoutsource

Bstrategic alliance

Ctransactional

Darms length

Show Suggested Answer

Suggested Answer: C

The correct answer is 'Sudden changes in the marketplace' -- this is a reason a buyer would be reactive. Reactive is when something happens to you and it forces you to act in a certain way. The other options would be strategic rather than reactive. P. 163

by Shawna at Feb 24, 2023, 08:30 PM

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Inocencia

9 hours ago

Transactional relationship? Psh, that's just asking for trouble. ABC needs to have a deeper connection with their supplier to keep that supply chain locked down.

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