APP Negotiation & Supplier Management 2

Question 1

A purchasing practitioner wants to strengthen negotiation leverage before a major contract renewal. Which action BEST builds that leverage?

Accepted Answer

Conduct a formal competitive bid process with alternate suppliers

Answer

Running a competitive bid introduces credible alternatives, which is the most direct way to increase buyer leverage.

Question 2

In supplier scorecards, which metric best reflects a supplier's ability to respond to sudden demand changes?

Accepted Answer

Flexibility and responsiveness score

Answer

Flexibility and responsiveness measures how quickly a supplier adjusts capacity or lead times when buyer demand fluctuates.

Question 3

During negotiation, the supplier states: 'This is our final price — take it or leave it.' What tactic is the supplier using?

Accepted Answer

Fait accompli

Answer

A 'take it or leave it' ultimatum is a fait accompli tactic, presenting a position as non-negotiable.

Question 4

A buyer is negotiating payment terms and wants to improve cash flow. Which term change achieves this?

Accepted Answer

Changing from Net 30 to Net 60

Answer

Extending payment terms from Net 30 to Net 60 means the buyer retains cash longer, improving working capital.

Question 5

Which supplier relationship strategy is most appropriate for a highly strategic, sole-source component with high supply risk?

Accepted Answer

Collaborative partnership with joint development

Answer

High strategic value and high supply risk call for deep collaborative partnerships that align interests and reduce mutual vulnerability.

(APP) Accredited Purchasing Practitioner Certification Practice Test