Supply Management Integration 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 Supply Management Integration flashcards as text
In supply management integration, 'make-or-buy' analysis PRIMARILY considers:
Answer: Core competency, total cost, capacity, risk, and strategic fit of producing versus procuring
Make-or-buy decisions require a multi-factor analysis including cost, strategic alignment, core competency, capacity, and supply risk.
A supply management team is implementing supplier-managed inventory (SMI). Which internal function MUST be closely integrated for this to succeed?
Answer: Operations and IT to share real-time consumption and inventory data with the supplier
SMI requires that operations consumption data and inventory levels flow electronically to the supplier so they can replenish proactively.
Which approach BEST integrates supply management with an organization's sustainability goals?
Answer: Extending sustainability criteria into supplier selection, evaluation, and development programs
Integrating sustainability into supplier selection and development programs embeds environmental and social criteria throughout the supply chain.
Which risk integration practice BEST prepares an organization for supply chain disruptions?
Answer: Maintaining a risk register with identified supply risks, owners, and mitigation plans updated regularly
A living risk register with assigned owners and mitigation plans ensures proactive, cross-functional management of supply chain risks.
When integrating supply management with legal, which activity is MOST critical during contract negotiations?
Answer: Ensuring contract terms reflect both commercial intent and legal enforceability
Effective supply-legal integration ensures that what procurement negotiates commercially is accurately and legally enforceable in the final contract.
Supply management's integration with accounts payable MOST directly improves:
Answer: Invoice accuracy, payment timing, and working capital management
Close integration between procurement and AP ensures invoices match purchase orders, payments are timed to optimize working capital, and disputes are resolved quickly.
A company's procurement team is asked to support a merger and acquisition (M&A) initiative. Which supply management task is MOST relevant?
Answer: Conducting supply chain due diligence on the target company's supplier base and contracts
Supply chain due diligence assesses the quality, risk, and contractual obligations of the target's supplier relationships, which materially affect deal value.