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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 # 227 Topic 23 Discussion

L4M5 Exam Topic 23 Question 227 Discussion:
Question #: 227
Topic #: 23

Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?


A.

Contend on the normal payment period


B.

Shorten payment period but ask for a discount


C.

Agree with supplier's payment period without any further demand


D.

Demand for a discount without any other concessions


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