Strategic Sourcing & Procurement Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Sourcing & Procurement flashcards as text
In the context of sustainable procurement, 'green sourcing' PRIMARILY focuses on:
Answer: Evaluating and selecting suppliers based on environmental performance and sustainability criteria
Green sourcing integrates environmental performance criteria—such as emissions, waste, and resource use—into supplier evaluation and selection.
A CPP candidate reviews a 'supplier scorecard.' Which combination of metrics provides the MOST comprehensive view of supplier performance?
Answer: Quality, delivery, cost, and service (QDCS) metrics
A balanced QDCS scorecard evaluates Quality, Delivery, Cost, and Service, providing a comprehensive multi-dimensional view of supplier performance.
Which negotiation strategy involves the buyer revealing its target price early to anchor supplier expectations?
Answer: Price anchoring
Price anchoring establishes a reference point early in negotiations that influences the supplier's subsequent offers toward the buyer's target.
Under the UCC (Uniform Commercial Code), what happens if a purchase order and a supplier's acceptance confirmation have conflicting terms?
Answer: A contract is formed on the matching terms; conflicting terms fall out unless one party objects (Battle of the Forms)
Under UCC Section 2-207, the 'Battle of the Forms' doctrine forms a contract on agreed terms while excluding conflicting boilerplate terms.
A procurement team wants to reduce supplier payment terms from Net 60 to Net 30 in exchange for a price reduction. This is an example of:
Answer: Early payment discount negotiation (dynamic discounting)
Dynamic discounting allows buyers to offer early payment in exchange for a negotiated price discount, benefiting both parties' cash flow.
Which action BEST demonstrates procurement's role as a strategic business partner rather than a transactional function?
Answer: Participating in new product development teams to influence design for sourcing
Participating in product development early allows procurement to influence design decisions that improve sourcing, cost, and supply chain resilience.
When analyzing a commodity market, a buyer observes increasing supplier concentration (fewer, larger suppliers). According to Porter's Five Forces, this MOST directly affects which force?
Answer: Bargaining power of suppliers
Higher supplier concentration increases the bargaining power of suppliers, as fewer alternatives make it harder for buyers to negotiate favorable terms.