In the Purchasing Portfolio Matrix, a leverage product is a product in a market where it is easy to switch suppliers and the quality is standardised. Is this TRUE or FALSE?
A.
False, the product is in a supply market which is highly complex and the product is of low importance
B.
False, the product is in a supply market which is highly complex and the product is of high importance
C.
True, the product is in a supply market which is of low complexity and the product is of high importance
D.
True, the product is in a supply market which is of low complexity and the product is of low importance
High profit impact:They significantly affect the company's bottom line.
Low supply risk:They are available from multiple suppliers, making it easy to switch if necessary.
These products often have standardized quality, and the competitive supply market allows buyers to negotiate favorable terms.
[Reference:, CIPS L4M6 Study Guide, , , ]
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