What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.
A . Persistent late payment of the supplier’s invoices
B . Unequal sharing of gains, risks, and costs with the supplier
C . Requesting early supplier involvement
D . Planning scheduled visits to the supplier site
E . Scheduling agreed supplier delivery dates

View Answer

Answer: A, B

Explanation:

Persistent late payment of the supplier’s invoices (A) and Unequal sharing of gains, risks, and costs with the supplier (B) are potential sources of conflict as they create dissatisfaction and imbalance in the relationship.

According to CIPS materials:

Late payments (A) can strain the supplier’s cash flow, affecting their operational stability and leading to mistrust in the buyer.

Unequal sharing of gains, risks, and costs (B) can result in one party feeling exploited or unfairly treated, which undermines the collaborative spirit essential for long-term partnerships.

In contrast, requesting early supplier involvement, planning visits, or setting delivery dates are typically part of constructive relationship management practices and do not inherently lead to conflict.