Which type of suppliers tend to have low-value items but are associated with a lot of work?

Study for the CIPS Introducing Procurement and Supply (L2M1) Test. Engage with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam with confidence!

The correct answer is routine suppliers. Routine suppliers are characterized by providing low-value items and typically involve a high volume of transactions requiring frequent ordering and management. These suppliers often deal with basic, everyday goods that are necessary for the operational processes of a business but don’t have a significant impact on the organization's overall strategy.

The workload associated with routine suppliers can be substantial because, although the individual orders are low in value, managing multiple small purchases can lead to a significant cumulative effort in terms of processing orders, managing supplier relationships, and ensuring timely deliveries. Therefore, while the items themselves might not command much attention strategically, the sheer number of transactions can create a considerable administrative burden.

In contrast, strategic suppliers are crucial for a company’s long-term goals and typically involve high-value, high-impact contracts. Bottleneck suppliers provide items that are critical but may come with a risk of supply disruption due to limited sources, thus requiring a different management approach. Leverage suppliers offer items that are higher in value, but the focus is more on negotiating favorable terms due to the bulk purchase potential rather than the operational routine.

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