CPL Strategic Sourcing & Procurement 3

Question 1

A 'make-or-buy' analysis would most likely favor outsourcing when:

Accepted Answer

Suppliers can perform the function at lower cost with acceptable quality

Answer

Outsourcing is favored when external suppliers can deliver cost or quality advantages for non-core activities, freeing internal resources for strategic work.

Question 2

Supplier scorecards are most effective when they measure performance across which dimensions?

Accepted Answer

Quality, delivery, cost, and service

Answer

Balanced scorecards track multiple performance dimensions—quality, on-time delivery, total cost, and responsiveness—to give a holistic view of supplier value.

Question 3

Which procurement document is used to solicit competitive pricing from pre-qualified suppliers for well-defined commodities?

Accepted Answer

Request for Quotation (RFQ)

Answer

An RFQ is used when specifications are clear and the primary evaluation criterion is price, making it ideal for commodity purchasing.

Question 4

The 'landed cost' of an imported product includes all of the following EXCEPT:

Accepted Answer

Supplier's internal manufacturing overhead

Answer

Landed cost covers all costs to get goods to the buyer's door—freight, duties, insurance, and handling—but not the supplier's internal overhead, which is embedded in the unit price.

Question 5

A procurement team discovers that three different business units are independently buying the same chemical from three different suppliers at three different prices. This is best addressed through:

Accepted Answer

Category management and spend consolidation

Answer

Category management consolidates purchases across business units under a single strategy, leveraging combined volume for better pricing and terms.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL Strategic Sourcing & Procurement 3