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) cabal

Question

Quizplus · Accepted Answer

The given scenario describes a group of companies joining forces to obtain lower prices for raw materials through e-procurement. This is an example of a buying alliance, which is a group of companies that pool their purchasing resources to achieve volume discounts and lower prices from suppliers. Choices A, B, and C do not accurately describe the situation, and choice E is an inappropriate term that implies secrecy and illegal behavior.

With Respect to E-Procurement,Coca-Cola,Sara Lee,Kraft,PepsiCo,P&G,and Several Other Companies Joined Forces