Sourcing and Supplier Management Flashcards
7 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sourcing and Supplier Management flashcards as text
Which Kraljic matrix quadrant contains items that are high-profit impact AND high supply risk, requiring strategic partnerships?
Answer: Strategic items
Strategic items in the Kraljic matrix have both high profit impact and high supply risk, warranting long-term collaborative supplier relationships.
A supplier scorecard shows a vendor's on-time delivery rate has dropped from 96% to 88% over three months. What is the BEST immediate procurement response?
Answer: Initiate a formal corrective action request with root cause analysis
A corrective action request requires the supplier to identify root causes and provide an improvement plan, addressing the problem directly.
Which sourcing strategy is most appropriate for a commodity product with many qualified suppliers and low switching costs?
Answer: Competitive bidding with multiple suppliers
When many capable suppliers exist and switching costs are low, competitive bidding maximizes price leverage and supply flexibility.
What is the main purpose of a supplier code of conduct?
Answer: To communicate the buyer's ethical, social, and environmental expectations to suppliers
A supplier code of conduct sets the non-commercial standards—labor practices, environmental compliance, anti-corruption—that suppliers must meet to do business.
When a buyer negotiates a blanket purchase order, what is the PRIMARY operational benefit?
Answer: It reduces administrative overhead by pre-authorizing repeat releases against one agreement
A blanket purchase order establishes pricing and terms upfront so individual releases can be placed without re-negotiating, cutting transaction costs.
In total cost of ownership (TCO) analysis, which cost is most often overlooked in a simple unit-price comparison?
Answer: Quality failure and rework costs
Quality failure costs—rework, returns, downtime, and warranty—are often hidden but can dwarf the unit price difference between suppliers.
Which type of supplier relationship is characterized by joint investment in R&D, shared cost and risk, and long-term mutual commitment?
Answer: Strategic alliance
A strategic alliance involves deep collaboration including shared resources, risks, and rewards, going well beyond a standard buyer-seller transaction.