Which of the following is a way of improving supplier commitment and loyalty?
Options:
A.
Have a stand-off approach to the relationship
B.
Over-promising the supplier future work
C.
Imposing excessive performance penalties
D.
Providing guaranteed order levels
Answer:
D
Explanation:
Improving supplier commitment and loyalty is a core theme of Supplier Relationship Management (SRM) within L4M6. CIPS emphasises that long-term, collaborative relationships encourage suppliers to invest time, resources, and innovation into the buyer relationship.
Providing guaranteed order levels reduces supplier uncertainty and risk, improving trust and encouraging commitment. This aligns with the concept of mutual dependency and relationship stability, which strengthens supplier loyalty.
Learning Outcome 3: Understand approaches to managing supplier relationships
Topic: Supplier commitment, trust, and collaboration
CIPS L4M6 Study Guide – Relationship spectrum and SRM principles
Question 78
Which of the following are not a valid reasons to terminate a relationship with a supplier? Select TWO.
Options:
A.
The supplier suddenly increases prices
B.
The supplier made one late delivery
C.
Supply base rationalisation
D.
The supplier becomes insolvent
E.
The supplier has a change in senior management
Answer:
B, E
Explanation:
Explanation
Two invalid reasons are; one late delivery and a change in senior management. Valid reasons to terminate a relationship are listed on p.107 and include the three listed here, as well as a material breach, damage to reputation and the supplier merges or is acquired by another company.
