Certified Supply Chain Professional CSCP Practice CSCP Sourcing Products and Services 1

Question 1

Which sourcing approach consolidates purchasing volume across business units to negotiate better pricing and terms?

Accepted Answer

Leverage buying

Answer

Leverage buying aggregates demand across an organization to increase negotiating power with suppliers, resulting in volume discounts and improved contract terms.

Question 2

What is the primary objective of supplier segmentation in strategic sourcing?

Accepted Answer

To classify suppliers by spend and risk so resources can be allocated appropriately

Answer

Supplier segmentation categorizes suppliers based on factors like spend volume and supply risk, enabling organizations to apply the right level of management attention and resources to each supplier relationship.

Question 3

Which document is typically issued early in the sourcing process to gather general information and capabilities from potential suppliers?

Accepted Answer

Request for Information (RFI)

Answer

A Request for Information (RFI) is used to collect broad information about supplier capabilities, capacity, and experience before the formal bidding process begins, helping buyers shortlist qualified vendors.

Question 4

In the make-or-buy decision framework, which factor most strongly favors outsourcing a component?

Accepted Answer

Internal capacity is fully utilized and the item is non-strategic

Answer

When internal capacity is constrained and the item is non-strategic, outsourcing allows the firm to focus resources on core activities while leveraging supplier specialization.

Question 5

What does a supplier scorecard primarily measure in ongoing supplier relationship management?

Accepted Answer

Supplier performance against agreed-upon KPIs such as quality, delivery, and cost

Answer

A supplier scorecard tracks key performance indicators—typically quality, on-time delivery, and cost compliance—providing objective data to manage and improve supplier performance over time.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice CSCP Sourcing Products and Services 1