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CIPS L4M5 Exam - Topic 9 Question 18 Discussion

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?
D) Pay the suppliers on time
A) Adopt opaque processes
B) Increase the spend value
C) Raise the transactional costs to do business

CIPS L4M5 Exam - 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?

Show Suggested Answer Hide Answer
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


by Kris at May 06, 2022, 06:57 PM

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Ben
11 months ago
Wait, is it really that bad? Exploit sounds harsh!
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Sina
11 months ago
I disagree, raising costs won't solve anything.
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Cory
12 months ago
Opaque processes? That's a bad idea!
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Darnell
12 months ago
Increasing spend value could help too.
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Giuseppe
12 months ago
Definitely need to pay suppliers on time!
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Adolph
1 year ago
Ah, I remember this topic from the lectures. The statement is false - there are other ways to redistribute routes between IGP and BGP besides just the network command. I'll make sure to explain that in my answer.
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Hildegarde
1 year ago
Key strategy here: 'Most' means not ALL plans, but a majority. I'll read the statement carefully and look for definitive language.
upvoted 0 times
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Janet
1 year ago
Allocation of budgets for business continuity seems like the safest bet. Ensuring proper funding is available is fundamental for managing availability.
upvoted 0 times
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Sheridan
1 year ago
I'm a little confused on this one. I'll have to review my notes to see if I can figure out the right answer.
upvoted 0 times
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