CAM Contract Management & Procurement Flashcards

A vendor consistently fails to meet SLA response times. What is the most appropriate first step for the account manager?

Answer: Document the breaches and initiate a formal performance review meeting

Documenting SLA breaches and conducting a formal performance review creates a record and gives the vendor an opportunity to remediate before escalation.

What does 'e-procurement' refer to in modern procurement practices?

Answer: Using digital platforms and software to automate purchasing and vendor management processes

E-procurement uses technology platforms to streamline sourcing, ordering, approvals, and vendor management across the entire procurement cycle.

Which negotiation tactic involves one party making an extreme initial offer to anchor the final settlement closer to their target?

Answer: Anchoring

Anchoring involves setting an extreme first number to psychologically pull the final agreement toward the anchor's direction.

What is the main benefit of including a 'most favored nation' (MFN) clause in a vendor contract?

Answer: Ensures the buyer receives pricing no worse than what the vendor offers any other customer

An MFN clause guarantees the buyer will always receive the vendor's best available pricing, protecting against being disadvantaged relative to other clients.

During contract closeout, which activity is most important for institutional knowledge retention?

Answer: Documenting lessons learned and archiving contract performance data

Capturing lessons learned and archiving performance records ensures future procurement decisions benefit from past experiences.

A procurement team uses a weighted scorecard to evaluate vendor proposals. What is the primary advantage of this approach?

Answer: It provides an objective, transparent comparison of vendors across multiple criteria

A weighted scorecard objectively scores vendors on factors like price, quality, and capability, reducing bias in the selection process.