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CIPS Supplier Relationships L4M6 Question # 12 Topic 2 Discussion

CIPS Supplier Relationships L4M6 Question # 12 Topic 2 Discussion

L4M6 Exam Topic 2 Question 12 Discussion:
Question #: 12
Topic #: 2

A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board of directors. The recommendation is based on a range of advantages including, but not limited to, gaining local market knowledge. Is this a valid recommendation?


A.

No, because confidentiality risk will be higher in a partnership


B.

Yes, as intellectual property costs will be lower in a partnership


C.

No, local market knowledge is guaranteed in a tender process


D.

Yes, as investment costs can be shared in a partnership


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