Question 1 of 30
A procurement manager at a manufacturing company is reviewing a contract with a key supplier that is set to expire in three months. The supplier has consistently delivered high-quality materials but has recently increased their prices due to market fluctuations. The manager is considering whether to amend the existing contract to negotiate better pricing or to renew the contract under the current terms. What should the manager prioritize in this situation?
Assess the supplier's performance and market conditions to determine if an amendment is necessary before renewal.
Immediately renew the contract to avoid any disruption in supply, regardless of the price increase.
Focus solely on negotiating a lower price without considering the supplier's overall performance.
Cancel the contract entirely and seek new suppliers to avoid dealing with price increases.

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