Supply Chain Manager Exam Prep

Category - Managing Supply

_________ will generate more opportunities for savings than two parties working independently.
  1. Signing contracts
  2. Building long-term relationships with clients
  3. Giving discounts
  4. Ending long-term relationships with clients
Explanation
Answer: B - A basic principle of good sourcing is that a buyer and supplier working together will generate more opportunities for savings than the two parties working independently. Solid cooperation is likely to result only when two parties have a long-term relationship with a degree of trust.
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