With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G, and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials.
A) manufacturer's co-op
B) supplier's co-op
C) middleman group
D) buying alliance
E) buying cabal

Question

Quizplus · Accepted Answer

The given scenario represents the concept of a buying alliance, which is an e-procurement strategy in which two or more companies join forces to increase their purchasing power and obtain lower prices from suppliers. Transora is an example of a buying alliance formed by Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G, and other companies to leverage their collective buying power for raw materials. Option A is incorrect because a manufacturer's co-op is a group of manufacturers who join together to achieve common goals, such as marketing or research, but not necessarily to purchase raw materials. Option B is also incorrect because a supplier's co-op represents a group of suppliers who come together to achieve economies of scale, but not necessarily to negotiate prices with buyers. Option C, middleman group, is incorrect because there is no mention of any middlemen involved in the procurement process. Option E, buying cabal, is a wrong term as a cabal is a secret political clique or faction that operates outside of traditional or lawful channels, which is not the case in this scenario.

With Respect to E-Procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G