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

Strategic suppliers are critical to competitive advantage and receive the highest investment in joint development, executive engagement, and long-term partnership activities.

Question 2

A Supplier Scorecard is primarily used to:

Accepted Answer

Measure and communicate supplier performance against defined KPIs

Answer

Supplier scorecards provide a structured, data-driven mechanism to track performance metrics and enable transparent two-way feedback between buyer and supplier.

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

Supplier development involves deliberate buyer investment—through training, process support, or co-investment—to improve a supplier's performance, quality, or capacity.

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

A corrective action request combined with a root-cause analysis meeting is the structured, collaborative first step that gives the supplier an opportunity to identify and fix underlying issues.

Question 5

Which metric is MOST relevant when evaluating supplier quality performance?

Accepted Answer

Parts Per Million (PPM) defect rate

Answer

Parts Per Million defect rate directly measures the frequency of defective units supplied, making it the standard quality KPI in supplier performance management.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Supplier Relationship Management