Exam L4M6 Topic 1 Question 35 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 35
Topic #: 1
A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for re-sale with a very small profit margin applied, relying on volume salesto make profit. Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?

Suggested Answer: B Vote an answer

For low-cost, high-volume business models, maintaining profitability depends on tightly controlled procurement costs. Price management is critical for ensuring competitive pricing while safeguarding slim margins. CIPS L4M6 highlights that effective cost management and price negotiation are essential in such scenarios.

by Xavier at Jun 15, 2025, 07:40 AM

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