Question

Which of the following is false about transactional suppliers?

a. They do not expect you to invest in capabilities
b. They recognize that relationships are cost driven and arms length
c. They need efficient buying practices and processes in place
d. They have sufficient resources to waste with good customers

Answer 1

Transactional suppliers are focused on short-term, transactional relationships and expect customers to invest in capabilities. They emphasize cost-driven and arms-length relationships.

Correct option is; d. They have sufficient resources to waste with good customers

Step-by-step explanation:

Transactional suppliers are suppliers that focus on short-term, transactional relationships with their customers. They expect the customers to invest in their own capabilities to fulfill their needs, so that they don't have to spend resources on customizing their products or services for individual customers.

They recognize that the relationships with their customers are driven by cost factors and are primarily based on transactions. They don't emphasize on building long-term relationships.

Transactional suppliers require efficient buying practices and processes from their customers to ensure smooth transactions and minimize costs.

**However, it is false that they have sufficient resources to waste with good customers**. Transactional suppliers typically focus on minimizing costs and maximizing efficiency, so they are unlikely to have excess resources to waste even with good customers.