CIPS L6M9 Question Answer
What is the purpose ofsupplier development?
To lower prices, which will increase the profit margin
To reduce the number of suppliers upon which a business would become dependent
To add value to the supply chain
To ensure that there are no logistics or delivery issues within the supply chain
The primary goal ofsupplier developmentis toadd valueto the supply chain, not just to reduce costs.
Option A is incorrectbecause supplier development is not solely about cost reduction—it also focuses onquality and efficiency.
Option B is incorrectbecause reducing suppliers is not always the goal; sometimes businesses want awidersupplier base.
Option D is incorrectbecause no system caneliminatelogistics risks entirely—there will always beuncertainties.
(See LO 1.1, p.2)
=================
TESTED 27 Dec 2025
Copyright © 2014-2025 ACE4Sure. All Rights Reserved