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PGMP · Question #382

As a Project Manager, you are managing a project that has fourteen deliverables from outside vendors. One vendor has been in negotiations with a partner for more financing that could cause the vendor

The correct answer is A. Contact the vendor and discuss this problem. A rumor about a vendor's financial trouble has surfaced and the PM must determine the best immediate action. Direct communication with the vendor is the proper first step before escalating or replacing them.

Life Cycle Management

Question

As a Project Manager, you are managing a project that has fourteen deliverables from outside vendors. One vendor has been in negotiations with a partner for more financing that could cause the vendor to stop production on one of your deliverables if they don?t reach an agreement. A rumor is out that the vendor's plant will be shutting down because of this issue. What is the best course of action you should take?

Options

  • AContact the vendor and discuss this problem
  • BStart contacting other vendors as a backup plan
  • CChange vendors as soon as one is found
  • DInitiate the risk response plan created for this vendor

How the community answered

(59 responses)
  • A
    83% (49)
  • B
    2% (1)
  • C
    10% (6)
  • D
    5% (3)

Why each option

A rumor about a vendor's financial trouble has surfaced and the PM must determine the best immediate action. Direct communication with the vendor is the proper first step before escalating or replacing them.

AContact the vendor and discuss this problemCorrect

Contacting the vendor directly addresses the issue at its source by obtaining accurate, first-hand information rather than acting on unverified rumors. This aligns with PMI's emphasis on proactive stakeholder communication and risk identification. Until the vendor confirms the situation, escalating or switching vendors is premature and could damage the vendor relationship unnecessarily.

BStart contacting other vendors as a backup plan

Contacting backup vendors before confirming the problem with the current vendor is premature and skips the essential step of verifying whether a real risk exists.

CChange vendors as soon as one is found

Changing vendors immediately without confirming the issue and without following a formal change process would be disruptive and potentially breach the existing contract.

DInitiate the risk response plan created for this vendor

Initiating a risk response plan is appropriate only after the risk has been confirmed; the situation is still based on a rumor and requires verification first.

Concept tested: Proactive vendor communication and risk identification

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Risk Management#Communication#Procurement Management

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