CPSM Supplier Relationship Management

Question 1

Which SRM model segment typically receives the most strategic investment and collaborative development efforts?

Accepted Answer

Strategic suppliers

Answer

Transactional suppliers

Answer

Preferred suppliers

Answer

Commodity suppliers

Question 2

A Supplier Scorecard is primarily used to:

Accepted Answer

Measure and communicate supplier performance against defined KPIs

Answer

Negotiate lower prices during contract renewal

Answer

Qualify new suppliers for the approved vendor list

Answer

Determine which suppliers should be consolidated

Question 3

Which of the following best describes 'supplier development' in the context of SRM?

Accepted Answer

Helping existing suppliers improve capabilities to meet buyer requirements

Answer

Increasing the number of suppliers in a category

Answer

Developing internal procurement staff to manage suppliers

Answer

Creating a new supplier portal system

Question 4

A Supplier Relationship Manager notices a key supplier's on-time delivery has dropped below 80% for three consecutive months. The MOST appropriate first step is to:

Accepted Answer

Issue a formal corrective action request (CAR) and schedule a root-cause meeting

Answer

Immediately terminate the contract and source an alternative

Answer

Reduce purchase orders to the supplier by 50%

Answer

Escalate to legal for breach of contract proceedings

Question 5

Which metric is MOST relevant when evaluating supplier quality performance?

Accepted Answer

Parts Per Million (PPM) defect rate

Answer

Days Sales Outstanding (DSO)

Answer

Inventory Turnover Ratio

Answer

Cash-to-Cash Cycle Time

Question 6

In SRM, a 'preferred supplier' designation typically means the supplier:

Accepted Answer

Has demonstrated superior performance and receives volume preference over others

Answer

Has exclusive rights to supply all volumes in the category

Answer

Is owned by a minority group and receives diversity credits

Answer

Has the lowest unit cost in the category

Question 7

Which of the following is a key benefit of implementing a formal SRM program?

Accepted Answer

Enables early access to supplier innovation and reduces supply disruptions

Answer

Eliminates the need for contract management

Answer

Reduces the total number of suppliers automatically

Answer

Transfers all supply chain risk to the supplier