CIPS Exam L4M6 Topic 2 Question 45 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 45
Topic #: 2

When developing a supplier partnership, a buyer can take either a strategic or reactive approach. What would be a reason for a reactive approach?

AYou discover that the supplier has a high profit margin

BThe buyer wishes to create a new product and requires input from a supplier

CSudden changes in the marketplace

DIt will allow for consolidation in the supply chain

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 Merilyn at Jul 15, 2024, 12:46 AM

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Irma

15 days ago

Hmm, I'd say C as well. Gotta be quick on your feet when the world goes topsy-turvy. Although, I do wonder if the supplier's high profit margin in A could be a fun negotiating tactic. Shake things up a bit, you know?

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1 months ago

Reactive approach? Sounds like a last-minute fire drill to me. I'd go with C - sudden changes in the marketplace. That's when you need to be nimble, not strategic.

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