Supplier Relationship Management 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 Supplier Relationship Management flashcards as text
A buyer wants to formalize expectations for quality, delivery, and service before onboarding a new supplier. The most appropriate document is a:
Answer: Supplier quality agreement (SQA)
A supplier quality agreement formally establishes quality standards, inspection requirements, and performance expectations before the first order is placed.
Which negotiation approach is most effective for preserving long-term supplier relationships while achieving cost objectives?
Answer: Interest-based (integrative) negotiation
Interest-based negotiation focuses on underlying needs of both parties to create mutually beneficial outcomes, supporting long-term relationship health.
A supplier's on-time delivery rate drops from 97% to 82% after they win a large contract with a competitor. The root cause is most likely:
Answer: Capacity constraints from competing priorities
Winning a large competing contract can overextend a supplier's production capacity, directly causing delivery delays to existing customers.
Which tool is used to map and visualize the risk exposure across an entire supplier portfolio by plotting probability against impact?
Answer: Risk heat map (probability-impact matrix)
A risk heat map plots each supplier risk by likelihood and severity, enabling prioritization of mitigation efforts across the supplier portfolio.
The Kraljic matrix categorizes purchased items into four quadrants. Items that are high in supply risk but low in profit impact are classified as:
Answer: Bottleneck items
Bottleneck items have limited sources of supply and high supply risk but low financial impact, requiring supply security strategies like safety stock and qualification of alternates.
A company implements a supplier portal that allows vendors to view forecasts, submit invoices, and track payment status. The primary benefit is:
Answer: Improving information transparency and reducing administrative transaction costs
A supplier portal centralizes information exchange, reducing manual communication, speeding up transactions, and improving visibility for both parties.
Which term describes the process of formally removing an underperforming supplier from the approved vendor list after improvement efforts have failed?
Answer: Supplier disqualification (de-listing)
Supplier disqualification or de-listing is the formal process of removing a supplier from the approved vendor list when they consistently fail to meet performance requirements.