Which of the following are most likely to turn buying organisation into an unattractive customer in supplier’s perspective? Select TWO that apply.

Which of the following are most likely to turn buying organisation into an unattractive customer in supplier’s perspective? Select TWO that apply.
A . Demands for kickback
B . Reduced paperwork in procurement processes
C . Adopting clear and concise CSR policies
D . Unclear tender award criteria
E . Using SRM technology

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Answer: A, D

Explanation:

Becoming a preferred customer to supplier’s perspective can increase the purchaser’s leverage in negotiation. Beside the size of buying organisation or its spend, the following may be sufficient to differentiate the buyer from other buying organisations:

Simple procurement processes: Using SRM technology may help to simplify the process Simple contracting processes

Clear and concise documentation: Reduced paperwork helps both supplier and buyer save their time and resources.

Absence of onerous supplier terms and conditions

On-time payment

Transparent processes: Unclear tender award criteria can be seen as opaque. Suppliers who attended the tendering processes cannot know the reasons why their bids are rejected and hesitate to attend other tendering.

Ethical behaviour: Suppliers may prefer a buyer who adopts CSR policy because they can predict potential customer’s behaviour. Demands for kickback are unethical behaviours.