APICS Certified Supply Chain Professional (CSCP) — Question 113

A firm has identified key benefits for developing a strategic alliance and has selected appropriate supply chain partners. Which of the following actions should the firm take to build a successful alliance with a supplier who is also a competitor?

Answer options

• A. Establish processes to control shared information.
• B. Negotiate contracts that maximize the firm's profits.
• C. Instruct employees to ignore the competitive aspect of the relationship.
• D. Analyze market for competitive advantage.

Correct answer: A

Explanation

The correct answer is A because establishing processes to control shared information is crucial in managing the sensitive nature of working with a competitor. Options B and D focus on profit maximization and market analysis, which do not directly address the unique challenges of a partnership with a competitor. Option C is impractical, as ignoring the competitive aspect could lead to conflicts and misunderstandings.