ISM Leadership and Transformation in Supply Management LEAD Question # 14 Topic 2 Discussion

ISM Leadership and Transformation in Supply Management LEAD Question # 14 Topic 2 Discussion

LEAD Exam Topic 2 Question 14 Discussion:
Question #: 14
Topic #: 2

Two large industrial organizations with global operations merge. Prior to the merger, the two companies had individual buyers at each manufacturing location, and these buyers were very successful. In the newly merged company, a sourcing team is established, with commoditymanagers reporting to the chief purchasing officer (CPO). Saving money has always been a top priority of the procurement staff, but the CPO is concerned about the new company's culture, as the commodity manager role didn’t exist in either of the two companies prior to the merger.

Which of the following should the CPO be MOST concerned with to ensure the success of the new commodity managers?


A.

Cost containment


B.

Optimization effort


C.

Cost avoidance


D.

Risk management


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