Vendor and Supplier Management Flashcards
7 cards from real COM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Vendor and Supplier Management flashcards as text
Which metric is most useful for evaluating ongoing vendor performance?
Answer: On-time delivery rate and defect/error rate
On-time delivery rate and defect/error rate are objective, measurable KPIs that directly reflect the vendor's reliability and quality of service.
An office manager discovers a vendor is not compliant with required data privacy regulations. What is the appropriate response?
Answer: Notify the vendor of the non-compliance and require corrective action or terminate the contract
Non-compliance with data privacy regulations exposes the organization to legal liability; the vendor must remediate or the contract should be terminated.
What is the primary benefit of conducting a vendor scorecard review?
Answer: To provide objective, data-driven feedback and identify improvement areas
A vendor scorecard provides a structured, objective review of performance metrics, enabling informed decisions about continuing, modifying, or ending vendor relationships.
Which clause in a vendor contract protects the organization if the vendor discloses proprietary business information?
Answer: Non-disclosure agreement (NDA)
An NDA legally obligates the vendor to keep the organization's proprietary information confidential and provides legal recourse if it is disclosed.
What does 'total cost of ownership (TCO)' mean when evaluating vendor pricing?
Answer: All costs associated with acquiring, using, and maintaining goods or services over their lifecycle
TCO goes beyond the purchase price to include implementation, maintenance, training, and disposal costs, giving a complete financial picture for comparison.
An office manager is onboarding a new cleaning services vendor. Which step should come FIRST?
Answer: Collecting required documentation such as insurance certificates and W-9 forms
Collecting insurance certificates, tax forms, and compliance documents ensures the vendor meets organizational and regulatory requirements before work begins.
Which approach best supports ethical vendor management practices?
Answer: Establishing a conflict-of-interest policy and ensuring transparent competitive bidding
Conflict-of-interest policies and transparent bidding processes prevent favoritism, ensure fair competition, and protect organizational integrity.