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Exam L4M5 All Questions
Exam L4M5 All Questions

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CIPS Level 4 Diploma in Procurement and Supply L4M5 Question # 107 Topic 11 Discussion

L4M5 Exam Topic 11 Question 107 Discussion:
Question #: 107
Topic #: 11

An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?


A.

No, because negotiating over telephone is enough to collect information on supplier's capability


B.

Yes, because the visit would increase the buyer's bargaining power


C.

Yes, because this is an opportunity to assess the supplier's capacity


D.

No, because the travel would incur unnecessary costs


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