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CIPS Ethical and Responsible Sourcing L4M4 Question # 43 Topic 5 Discussion

CIPS Ethical and Responsible Sourcing L4M4 Question # 43 Topic 5 Discussion

L4M4 Exam Topic 5 Question 43 Discussion:
Question #: 43
Topic #: 5

AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.

How can this information help the consultant decide on the procurement strategy?


A.

Vehicle livery is high value but needs little attention; an arm’s length approach is required


B.

There are several suppliers, so only moderate time and effort should be spent using a transactional approach


C.

Regardless of value and importance, vehicle livery should be treated the same as low-value categories


D.

Strategic high-value expenditure categories should be prioritised, requiring a closer and more collaborative supplier relationship


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