CIPS L4m6 Supplier Relationships · Free Practice Question Medium
Question 1
If both parties achieve their desired outcomes from a relationship such as high cost efficiency or greater revenue, definitely they have a partnership relationship. Is this true?
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A
Yes, because only partnering relationship can fully satisfy both parties' needs
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B
Yes, because both parties yield to each other's needs in partnership
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C
No, because time and resources spent on partnership are greater than the benefits
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D
No, because adversarial relationship may bring the same benefits
Reveal correct answer
Correct answer: D
Explanation
Very often senior members of a company consider a relationship they have with a supplier to be a partnership. Lambert's research demonstrated that many of these relationships were not partnerships but were instead long-term contracts with prices and volume guarantees for the supplier. Just because both parties are achieving the desired outcomes and benefits from a relationship does not mean that the buyer and supplier have a partnership relationship. Other types of relationship such as adversarial may also bring the same benefits as partnership if both parties strive to find a win-win solution.
LO 3, AC 3.1
Discussion
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