CIPS Exam L4M6 Topic 10 Question 40 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 40
Topic #: 10

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 Lajuana at May 19, 2024, 10:07 AM

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Cassi

6 months ago

Sudden changes in the marketplace? That's the one. It's like trying to catch a greased pig - you gotta be quick on your feet!

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Glory

6 months ago

Consolidation in the supply chain? Sounds like a fancy way of saying 'let's just smoosh everything together and hope it works out'.

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Kenny

6 months ago

Haha, 'high profit margin'? Yeah, right. That's the kind of thing you'd expect to see on a game show, not a real exam question.

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Iraida

5 months ago

Yeah, I agree. 'High profit margin' sounds too good to be true.

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Hillary

5 months ago

Yeah, I agree. 'High profit margin' sounds too good to be true.

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Latrice

5 months ago

C) Sudden changes in the marketplace

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Glynda

5 months ago

A) You discover that the supplier has a high profit margin

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Clay

6 months ago

C) Sudden changes in the marketplace

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Janey

6 months ago

A) You discover that the supplier has a high profit margin

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Ilene

6 months ago

A reactive approach? Yikes, that's just asking for trouble. Might as well just throw darts at the options and hope for the best.

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Detra

6 months ago

D) It will allow for consolidation in the supply chain

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Dorothy

6 months ago

C) Sudden changes in the marketplace

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Mitzie

6 months ago

A) You discover that the supplier has a high profit margin

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Aimee

6 months ago

Sudden changes in the marketplace? That's the only logical answer here. You can't just be reactive in a supplier partnership, that's a recipe for disaster.

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