Which of the following is a way of improving supplier commitment and loyalty?

Improving supplier commitment and loyalty is a core theme of Supplier Relationship Management (SRM) within L4M6. CIPS emphasises that long-term, collaborative relationships encourage suppliers to invest time, resources, and innovation into the buyer relationship.

Providing guaranteed order levels reduces supplier uncertainty and risk, improving trust and encouraging commitment. This aligns with the concept of mutual dependency and relationship stability, which strengthens supplier loyalty.

The other options are incorrect because:

A stand-off approach discourages collaboration

Over-promising future work damages trust if unmet

Excessive penalties create adversarial relationships

L4M6 Reference:

Learning Outcome 3: Understand approaches to managing supplier relationships

Topic: Supplier commitment, trust, and collaboration

CIPS L4M6 Study Guide – Relationship spectrum and SRM principles