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

Single sourcing concentrates all volume with one supplier to build a strategic relationship and achieve maximum price leverage, at the expense of supply continuity risk.

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

An RFI is a low-commitment tool used early in sourcing to learn about supplier capabilities, capacity, and market pricing before developing formal solicitation documents.

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

Pre-qualification screens suppliers on objective criteria such as financial health, certifications, capacity, and regulatory compliance to create an approved vendor list before sourcing events.

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

Weighted scoring balances multiple criteria — price, quality, delivery, financial strength — so a low-price supplier with poor quality scores may lose to a higher-priced but better-rounded competitor.

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

In a reverse auction, pre-qualified suppliers compete in real time by lowering their bids, allowing buyers to achieve market-driven price reductions quickly.

(APP) Accredited Purchasing Practitioner Certification Practice Test

(APP) Accredited Purchasing Practitioner Certification Practice Test

APP APP Strategic Sourcing & Procurement Planning 2