CLA Procurement & Strategic Sourcing 3

Question 1

Which negotiation approach focuses on creating value for both buyer and supplier rather than dividing a fixed resource?

Accepted Answer

Integrative (win-win) negotiation

Answer

Integrative negotiation seeks to expand the total value available by identifying shared interests and creative trade-offs that benefit both parties.

Question 2

A contract clause specifying that prices will adjust based on changes in a commodity index is called a:

Accepted Answer

Price escalation/de-escalation clause

Answer

An escalation/de-escalation clause automatically adjusts contract prices in line with a published index, sharing commodity risk between buyer and supplier.

Question 3

Supplier development programs are designed to:

Accepted Answer

Improve a supplier's capabilities, quality, or delivery performance to meet buyer requirements

Answer

Supplier development involves investing resources to help a supplier build the capabilities needed to meet current or future performance expectations.

Question 4

Which payment term gives a buyer a discount for early payment?

Accepted Answer

2/10 net 30

Answer

2/10 net 30 means the buyer receives a 2% discount if payment is made within 10 days, otherwise the full amount is due in 30 days.

Question 5

A reverse auction in e-procurement is characterized by:

Accepted Answer

Multiple suppliers competing in real time by lowering their bids to win a buyer's business

Answer

In a reverse auction, the buyer defines requirements and suppliers bid against each other in real time, driving prices down through competition.

CLA - Certified Logistics Analyst Practice Test

CLA - Certified Logistics Analyst Practice Test

CLA Procurement & Strategic Sourcing 3