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CIPS L4M6 Exam - Topic 2 Question 84 Discussion

Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph's company spends an additional 25% on moving and installing the cable. In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?
D) Partnership
A) Single-sourced
B) Closer tactical
C) Transactional

CIPS L4M6 Exam - Topic 2 Question 84 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 84
Topic #: 2
[All L4M6 Questions]

Joseph works as a category manager for a large electricity supply company. His company is one of six electricity companies in the country. All have a high annual spend on the same specifications of cable. There are only five cable manufacturers capable of supplying the cables. Joseph has established all the suppliers use the same raw materials using the same types of manufacturing lines. Prices tendered by all suppliers are very similar. After paying for the cable, Joseph's company spends an additional 25% on moving and installing the cable. In order to enable Joseph to gain advantage over the other electricity companies, which type of supplier relationship should he adopt?

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Suggested Answer: D

A partnership relationship allows Joseph to collaborate with suppliers on cost savings in manufacturing, logistics, and installation, providing a competitive edge over rival companies.


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Lashaunda
1 day ago
I practiced a similar question, and I feel like a single-sourced relationship could limit options, but maybe it would help with negotiating better terms?
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Tony
6 days ago
I'm not entirely sure, but I remember something about closer tactical relationships being beneficial in competitive markets.
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Shawnda
11 days ago
I think a partnership might be the best option since it could lead to better pricing and collaboration on logistics.
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