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CIPS L4M5 Exam Dumps

CIPS L4M5 Exam Dumps

Commercial Negotiation

Total Questions : 223
Update Date : November 08, 2024
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Related Exams

Question # 1

Whenimplementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements? 

A. SMART 
B. STOPS WASTE
 C. OWN-IT 
D. SAMOA 



Question # 2

In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true? 

A. Yes, because the outcomes of negotiation are attributable to the buying organisation 
B. No, because personal power of negotiators also attributes tothe outcomes 
C. No, because power of supplier is the only factor that influences the other party 
D. Yes, because buyer's brand, reputation and purchasing spend largely determine the outcomes 



Question # 3

Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply. 

A. Forming purchasing consortia  
B. Volume consolidation across categories
 C. Volume separation 
D. Paying supplier on time 
E. Volume redistribution
F. Simplify procurement process 



Question # 4

A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order topersuade the supplier to cut the cost by 10%, she promises to shorten the payment period from 45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price. The purchasing manager has used which type of power? 

A. Reward 
B. Expertise 
C. Coercive 
D. Informational 



Question # 5

Katie is preparing a negotiation with a strategic supplier. Through deep market analysis, she realises that her company and the supplier have equal bargaining power. Via regular communication, Katie knows that both parties are arguing on amount of liquidated damages and neither party shall concede all of their requirements but some are negotiable. Katie and her counterpart from supplying company still desire a long-term relationship and hope that the meeting between them will be a solution for current situation. Which of the following isthe most appropriate approach that Katie should adopt to achieve the above outcome? 

A. Avoiding approach 
B. Competing approach 
C. Compromising approach e directly than avoiding but doesn’t explore it in as
D. Accommodating approach 



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