Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following best describes the function of a supplier and buyer broker service in trade exchanges?

1. To limit supplier options for buyers

2. To facilitate connections and transactions between suppliers and buyers

3. To enhance competition by removing brokers

4. To focus solely on direct sales

The correct answer is: To facilitate connections and transactions between suppliers and buyers

The function of a supplier and buyer broker service in trade exchanges is best described by the option that highlights the facilitation of connections and transactions between suppliers and buyers. Brokers play a crucial role in streamlining the process of matching suppliers with potential buyers, often through online platforms or trade exchanges that serve as intermediaries. By operating in this capacity, broker services create value by helping buyers find suitable suppliers for their needs while also enabling suppliers to access a broader customer base. This connective function enhances market efficiency, making it easier for both parties to conduct business. The broker's role in facilitating transactions can include providing critical market information, negotiating terms, and simplifying the logistics involved in trading, ultimately leading to more successful and efficient trade exchanges. The other options do not accurately reflect the comprehensive role that brokers play in trade exchanges, as they typically aim to enhance market interactions rather than limit options or focus only on direct sales.