L4M5 practice question 33 of 35

Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.

Full set: 275 questions
Answer options
A: Avoidance of submitting important documentations Correct answer
B: Reduced response time during contract performance
C: Resolving some conditions that would otherwise have them competing for resources
D: Subjective assessment of performance Correct answer
E: Exploring a disagreement to learn from each other's insights
Correct Answer:
A. Avoidance of submitting important documentations; D. Subjective assessment of performance
Explanation

Trust in a buyer-supplier relationship is built on reliability, transparency, and fairness.
A) Avoidance of submitting important documentation undermines trust by creating uncertainty and suggesting a lack of transparency or commitment. It signals that the party may be unreliable or hiding information.
D) Subjective assessment of performance erodes trust because it can be perceived as biased, inconsistent, and unfair. Trust requires objective, clear, and mutually agreed-upon metrics for evaluating performance to ensure both parties are judged equitably.

Why Incorrect

B. Reduced response time is a positive behaviour that demonstrates efficiency and attentiveness, which would build, not harm, trust.
C. This is a collaborative, problem-solving action. Working together to resolve resource competition is a key activity for building trust and strengthening a relationship.
E. This describes a constructive approach to conflict resolution. A willingness to learn from disagreements shows respect and fosters a deeper, more trusting partnership.

References

1. CIPS. (2019). Managing Contracts and Relationships in Procurement and Supply (L4M3) Study Guide. Stamford, UK: Chartered Institute of Procurement & Supply. pp. 120-122, Section 4.1 'Trust and transparency in supplier relationships'.

2. Handfield, R. B. (2011). The Procurement and Supply Manager's Desk Reference. J. Ross Publishing. Chapter 10, 'Supplier Relationship Management', emphasizes that trust is based on performance, consistency, and transparency. Subjectivity and unreliability are cited as trust destroyers.

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