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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

  1. A buyer requires suppliers to hold a minimum 30-day inventory at their own facility for release on demand. This arrangement is called:

    Answer: Consignment or supplier-held buffer stock

    Consignment or supplier-held buffer stock keeps inventory at the supplier's risk until called off, reducing buyer's on-hand investment.

  2. Which sustainability practice in procurement requires suppliers to disclose the carbon footprint of their manufacturing processes?

    Answer: Scope 3 emissions reporting

    Scope 3 emissions encompass value chain emissions including those from suppliers, and requiring their disclosure is a key sustainable sourcing practice.

  3. What is the primary risk of single sourcing a high-volume, critical component?

    Answer: Supply disruption with no immediate alternative if the supplier fails

    Single sourcing concentrates supply risk: any disruption at the sole supplier halts production with no qualified backup available.

  4. A company's procurement team implements e-procurement software to automate purchase requisitions and approvals. The MAIN benefit is:

    Answer: Reduced maverick spending and faster cycle times through standardized workflows

    E-procurement systems enforce policy-compliant buying channels and streamline approvals, cutting off-contract purchases and reducing transaction processing time.

  5. When a buyer includes environmental and social governance (ESG) criteria in a supplier evaluation, the practice is referred to as:

    Answer: Responsible sourcing

    Responsible sourcing formally integrates ESG criteria—environmental impact, labor rights, and governance—into supplier selection and monitoring.

  6. Which document formally initiates the internal procurement process by identifying a need and requesting authorization to purchase?

    Answer: Purchase requisition

    A purchase requisition is the internal document that triggers the procurement process by identifying what is needed and seeking management authorization.

  7. In supply chain risk management, a 'second-tier supplier' risk refers to:

    Answer: Vulnerabilities at the suppliers of your direct suppliers that can cascade upstream to you

    Second-tier supplier risk recognizes that disruptions beyond your direct suppliers can propagate up the chain and impact your own supply continuity.