CPSM Essentials in Supplier Diversity 3

Question 1

Which supplier diversity certification is specifically designed for businesses that are at least 51% owned, controlled, and operated by LGBTQ+ individuals?

Accepted Answer

NGLCC certification

Answer

The National LGBT Chamber of Commerce (NGLCC) certifies LGBT Business Enterprises (LGBTBEs), providing recognition for LGBTQ+-owned businesses in corporate supply chains.

Question 2

A buying organization discovers that a certified MBE supplier has been acquired by a large non-diverse corporation but still holds its certification. What should the procurement team do?

Accepted Answer

Notify the certifying body and request re-verification

Answer

Certifications must reflect actual ownership and control; the procurement team should alert the certifying body so ownership criteria can be re-evaluated.

Question 3

What is the primary purpose of a 'matchmaking event' in a supplier diversity program?

Accepted Answer

Connect diverse suppliers directly with corporate buyers

Answer

Matchmaking events create structured opportunities for diverse suppliers to meet and pitch to corporate procurement decision-makers, facilitating new business relationships.

Question 4

According to ISM principles, which element is MOST critical when building a business case for a supplier diversity program to present to senior leadership?

Accepted Answer

ROI data showing revenue and innovation benefits

Answer

ISM emphasizes that supplier diversity business cases must demonstrate quantifiable value—including revenue access, innovation, risk mitigation, and market expansion—to gain executive buy-in.

Question 5

A procurement manager sets a 15% diverse spend goal. By year-end, only 9% was achieved. Which action is the BEST corrective measure for next year?

Accepted Answer

Break down the gap by category and set category-level targets with buyer accountability

Answer

Category-level analysis identifies where the shortfalls occurred and assigns ownership, enabling targeted action plans that are more likely to close the gap.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Essentials in Supplier Diversity 3