Who is considered a preferred customer?

Prepare for the CIPS Supplier Relationships (L4M6) Test with engaging questions. Deep dive into supplier management through multiple-choice questions and detailed explanations. Boost your knowledge and confidence before the exam!

A preferred customer is defined as a buying organization that receives better treatment from a supplier compared to other customers. This preferential treatment typically arises from a strong, established relationship built over time, characterized by qualities such as consistent purchasing volumes, timely payments, loyalty to the supplier, or mutual strategic goals. Suppliers often prioritize these preferred customers by offering discounts, better delivery terms, or enhanced service levels, which can lead to a more sustainable partnership that benefits both parties.

In contrast, those who spend the least, untrustworthy suppliers, or customers who demand immediate delivery do not typically align with the definition of a preferred customer. A preferred customer relationship is founded on mutual trust, reliability, and value, rather than on mere spending levels or immediate demands.

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