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CIPS Exam L4M5 Topic 9 Question 18 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 18
Topic #: 9
[All L4M5 Questions]

A senior buyer analyses the supply market and he realises that his organisation is treated as Exploit according to supplier's perspective model. What does he need to do?

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Suggested Answer: D

The supplier's perspective model has two axes: Spend value and Attractiveness:

Exploit is the quadrant where the buyer has high spend but low attractiveness. Overarching supplier objective would be: 'Milk this customer and charge a high price to compensate for all the pain they put us through'.

The buyer should increase its attractiveness to raise the position to Core customer. To do this, a buyer may:

- Simplify procurement processes

- Simplify contracting processes

- Use clear and concise documentation

- Eliminate onerous supplier terms and conditions

- Make the payment on time

- Use transparent processes

- Promote ethical behaviours

LO 1, AC 1.4


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