When might a buyer decide to use a distributive approach to a negotiation with a supplier?
A.
When they are dependent on that supplier in the future
B.
When there are various suppliers in the market producing a similar product
C.
When procuring an item that is not strategic to the organisation
D.
When a working relationship is important in the future
The Answer Is:
B
This question includes an explanation.
Explanation:
A distributive approach is appropriate when multiple suppliers offer similar products, as this competitive environment allows the buyer to focus on maximizing their position rather than building long-term partnerships. CIPS suggests that a distributive or competitive approach is best used in non-critical purchases or when supplier dependency is low, as is the case here.
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