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Question 357 - CSCP discussion

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Interpersonal communication skills and negotiation with suppliers is important because it:

A.
enables the buying organization to partner with suppliers
Answers
A.
enables the buying organization to partner with suppliers
B.
drives higher price breaks and lot size discounts
Answers
B.
drives higher price breaks and lot size discounts
C.
allows the most competitive suppliers to remain viable
Answers
C.
allows the most competitive suppliers to remain viable
D.
is essential to achieve cost-cutting targets
Answers
D.
is essential to achieve cost-cutting targets
Suggested answer: A

Explanation:

Interpersonal communication skills and negotiation with suppliers are critical for establishing strong partnerships. Effective communication fosters mutual understanding and trust, which are the foundations of long-term relationships. These skills allow the buying organization to align with suppliers on goals, expectations, and performance standards. Negotiation helps in creating agreements that are beneficial to both parties, ensuring that suppliers are motivated to maintain quality and reliability. While driving price breaks and discounts (B), keeping competitive suppliers viable (C), and achieving cost-cutting targets (D) are important, the primary advantage lies in forming strategic partnerships that lead to a more resilient and collaborative supply chain.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.

Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2010). Supply Management. McGraw-Hill/Irwin.

asked 16/09/2024
mostafa khalaf
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