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Citywide Developments Ltd (CDL) is a construction programme management company that delivers the design and build of high-value property development schemes. CDL uses third-party consultant design services, using named consultants in the contract. CDL has recently observed increases in the consultancy day rate for these consultants. Which of the following tradeable concessions could CDL offer when negotiating with the suppliers of design services, in order to achieve lower rates of pay, but without lowering the quality of service?
Suggested Answer: C, E
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There are many macro economic factors that could influence procurement in general and commercial negotiation in particular. Below are six factors that are agreed to be fairly significant:
* Economy growth rate
* Inflation rates
* Interest rates
* Currency exchange rate
* Unemployment rate
* Protectionism
LO 2, AC 2.2
37 comments · newest first
CH
Christene
12 months ago
Reducing discounts (option C) seems counterproductive, why would they agree to that?
DO
Dorcas
1 year ago
Shorter working days (option B) could work, but will it really save money?
TH
Thurman
1 year ago
Not sure about option A, unqualified trainees might compromise quality.
ZO
Zona
1 year ago
Agree with John, named personnel can be a big expense!
RA
Raul
1 year ago
I think option D makes sense, flexibility could help lower costs.
PA
Pamella
1 year ago
Accepting unqualified trainee consultants seems risky to me; I doubt that would maintain the quality we expect from our design services.
LA
Launa
1 year ago
I practiced a similar question about tradeable concessions, and I feel like reducing volume-based rate discounts might not be the best choice since it could affect overall costs.
CH
Christiane
1 year ago
I think removing the requirement for named personnel might help negotiate lower rates, but it could also risk the quality of service we need.
RI
Rima
1 year ago
I remember discussing how offering a shorter working day could potentially lower costs without compromising quality, but I'm not sure if that's the best option here.
BR
Brock
1 year ago
I'm a little confused by this question. I don't have much experience with the IBM Content Search Services server, so I'm not sure which tool would be used to change the port. I'll have to guess on this one.
JE
Jesusita
1 year ago
Ah, I see. This is testing my knowledge of MPLS backup paths and label distribution. I'll need to apply that here.
FI
Fidelia
1 year ago
Hmm, I'm not totally sure about this one. I know there are different types of customer surveys, but I'm having trouble remembering the specific differences between them. I'll have to think this through carefully.
AM
Amie
1 year ago
Hmm, I'm not totally sure about this one. I know VLANs are used for network segmentation, but I'm not certain if business types are the main factor in how they're planned. I'll have to think this through.
LE
Leah
1 year ago
I'm a little confused by the terminology used in this question. What exactly is a "service-oriented analysis process"? I'll need to review my notes and make sure I understand the concept before answering.
CO
Colby
1 year ago
I don't know, but if I were CDL, I'd be offering the consultants a free trip to the Caribbean. That's the kind of 'tradeable concession' I'd be looking for!
MA
Matilda
1 year ago
D) Remove the requirement for the named personnel
SI
Simona
1 year ago
C) Reduce the volume-based rate discounts
AR
Art
1 year ago
B) Offer a shorter consultant working day
JU
Judy
1 year ago
A) Accept unqualified trainee consultants
CO
Coletta
1 year ago
Remove the requirement for named personnel? Now that's an interesting idea! CDL could save some cash and maybe find some hidden gems along the way.
LU
Luther
1 year ago
True, but reducing the volume-based rate discounts could also be a way to negotiate lower rates.
SH
Sherron
1 year ago
I agree, but offering a shorter consultant working day might also be a good compromise.
LE
Leonie
1 year ago
That's a good point! Accepting unqualified trainee consultants could also help save costs.
TH
Thomasena
2 years ago
Reducing volume-based rate discounts? Hmm, that might work, but it's kind of a boring option. Where's the creativity?
TR
Trinidad
1 year ago
C) Reduce the volume-based rate discounts
CH
Christene
1 year ago
B) Offer a shorter consultant working day
LA
Lauryn
1 year ago
A) Accept unqualified trainee consultants
TR
Troy
2 years ago
Offering a shorter consultant working day? That's just going to lead to less work getting done. Not a smart move.
PA
Paris
1 year ago
C) Reduce the volume-based rate discounts
AL
Alecia
1 year ago
B) Offer a shorter consultant working day
CH
Christoper
1 year ago
A) Accept unqualified trainee consultants
VE
Verona
2 years ago
I think removing the requirement for named personnel could also help in negotiating lower rates.
PH
Phung
2 years ago
Really? Accept unqualified trainees? That's a recipe for disaster! CDL should focus on maintaining quality, not cutting corners.
JO
Johanna
1 year ago
User 2: CDL should consider other options like reducing volume-based rate discounts.
JE
Jettie
2 years ago
User 1: I agree, accepting unqualified trainees is risky.
JO
Josphine
2 years ago
I disagree, I believe reducing the volume-based rate discounts would be more effective.
BR
Brock
2 years ago
I think CDL could offer unqualified trainee consultants.