Uyer and Supplier Relationships Have Become Increasingly Important for a Number

Multiple Choice

uyer and supplier relationships have become increasingly important for a number of reasons. All of the following reasons are correct with one exception. Which one is incorrect?

A) In some market segments, it is estimated that 40 percent or more of total product revenue often passes directly to suppliers as payment for materials, profits, and shipment.
B) This significant transfer of value downstream emphasizes the importance and significance of supply chain relationship management.
C) With the decreasing number of suppliers used by buying firms, it is more important than ever to maintain strong buyer-supplier relationships.
D) There is a trend toward specialization away from manufacturing an entire product and to more contract manufacturing and purchasing.
E) For any buying organization to stay competitive in today's aggressive market sectors, it is essential that they maintain strong relationships with their best contract manufacturers and suppliers.