APP APP Strategic Sourcing & Procurement Planning 2

Question 1

Which sourcing approach involves selecting a single supplier for a category, accepting higher risk in exchange for deeper collaboration?

Accepted Answer

Single sourcing

Answer

Dual sourcing

Answer

Multi-sourcing

Answer

Spot buying

Question 2

A 'Request for Information (RFI)' is BEST used at which stage of the strategic sourcing process?

Accepted Answer

Market intelligence gathering before issuing an RFP

Answer

Final contract negotiation

Answer

Post-award supplier performance review

Answer

Invoice dispute resolution

Question 3

Supplier 'pre-qualification' in strategic sourcing typically evaluates:

Accepted Answer

Financial stability, quality systems, capacity, and compliance before allowing them to bid

Answer

Only the supplier's quoted price for the specific requirement

Answer

The supplier's marketing materials and brand reputation

Answer

Geographic proximity to the buyer's headquarters

Question 4

In a weighted-scoring supplier evaluation, a supplier with the lowest price but poor quality scores should:

Accepted Answer

Be evaluated on total weighted score, which may disqualify them despite low price

Answer

Always be awarded the contract because price is paramount

Answer

Automatically move to the final negotiation round

Answer

Be awarded partial volume as a compromise

Question 5

What is the primary benefit of a 'reverse auction' in strategic sourcing?

Accepted Answer

It drives competitive price reduction through real-time bidding among pre-qualified suppliers

Answer

It guarantees the highest-quality supplier wins

Answer

It eliminates the need for a formal statement of work

Answer

It automatically generates a legally binding contract

Question 6

A 'category strategy' document in strategic procurement typically includes:

Accepted Answer

Market analysis, spend baseline, sourcing options, recommended strategy, and savings targets

Answer

Only a list of approved vendors and their prices

Answer

The procurement department's annual operating budget

Answer

Individual buyer performance goals for the year