Supplier Relationship Management Flashcards
7 cards from real CPSM 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
Which metric is MOST useful for measuring a supplier's delivery reliability over time?
Answer: On-time delivery rate
On-time delivery rate directly measures whether a supplier consistently meets agreed delivery schedules.
A buyer discovers that a key supplier is financially distressed. What is the BEST immediate action?
Answer: Conduct a financial risk assessment and develop a contingency plan
A financial risk assessment combined with a contingency plan allows the buyer to understand exposure and prepare alternatives without disrupting supply.
In supplier segmentation, which quadrant of the Kraljic Matrix represents items with high supply risk and low profit impact?
Answer: Bottleneck items
Bottleneck items have high supply risk but low profit impact, requiring supply security strategies.
What is the primary purpose of a Supplier Code of Conduct?
Answer: To define ethical, social, and environmental standards suppliers must meet
A Supplier Code of Conduct communicates the buyer's expectations for ethical behavior, labor practices, and environmental responsibility.
Which approach BEST describes 'open book costing' in a supplier relationship?
Answer: The supplier shares all cost breakdowns with the buyer to enable joint cost reduction
Open book costing involves the supplier transparently sharing cost data so buyer and supplier can collaborate to reduce costs.
A supplier consistently delivers high-quality products but frequently misses delivery windows. Which corrective action plan element is MOST critical?
Answer: Analyzing root causes of delivery failures and setting measurable improvement targets
Root cause analysis with measurable targets addresses the systemic delivery issue rather than just symptoms.
Which of the following BEST characterizes a transactional supplier relationship?
Answer: Short-term, price-focused interactions with minimal information sharing
Transactional relationships are characterized by arm's-length interactions focused primarily on price with limited collaboration or information exchange.