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CIPS Exam L4M5 Topic 13 Question 69 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 69
Topic #: 13
[All L4M5 Questions]

In preparation for holding negotiation meetings with existing suppliers, category manager Stephen would like to appraise the bargaining strength of his organisation. Which of the following are examples of buyer power? Select TWO that apply:

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Suggested Answer: C

In the scenario, the value of contract as well as the importance of purchased item justify the procurement's travel. Visiting a supplier at their HQ or operational facility may facilitate the procurement team in assessing, albeit briefly, the culture of the organisation, how busy they seem and how staff engage with each other. A visit is a good opportunity to assess supplier's capacity.

LO 2, AC 2.2


Contribute your Thoughts:

Gilma
5 hours ago
A and D seem like the most obvious choices here. As a category manager, Stephen needs to know how much bargaining power he has against his suppliers.
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Tiera
6 hours ago
I agree with Kristel. A and D make sense because they show the ability to switch suppliers easily and being large in size relative to suppliers.
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Kristel
6 days ago
I think A and D are examples of buyer power.
upvoted 0 times
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