CRP Supply Chain Resilience & Vendor Management Flashcards

In supply chain resilience, what is the purpose of geographic diversification of suppliers?

Answer: To reduce exposure to regional disasters, political instability, or weather events

Geographic diversification ensures a regional disruption such as a hurricane or political crisis does not simultaneously disable multiple suppliers.

Which document formally defines service expectations, recovery objectives, and penalties for a vendor relationship?

Answer: Service Level Agreement (SLA)

A Service Level Agreement specifies performance standards, recovery time objectives, and contractual remedies if a vendor fails to meet commitments.

What is 'supply chain mapping' and why is it critical for resilience?

Answer: Documenting all tiers of suppliers to identify hidden dependencies and risks

Supply chain mapping documents Tier 1, 2, and 3 suppliers to reveal hidden single points of failure and concentration risks that may not be visible at the surface level.

When a critical vendor fails during a disruption, which response action should occur first?

Answer: Activate the pre-identified alternate supplier per the contingency plan

The contingency plan should already identify alternate suppliers, and activating them immediately minimizes operational downtime.

What is the role of 'safety stock' in supply chain resilience?

Answer: Buffer inventory maintained to sustain operations during supply disruptions

Safety stock provides a time buffer that allows operations to continue while alternate supply arrangements are activated following a disruption.

Which CRP principle applies when an organization ensures its vendors align with its own resilience and continuity standards?

Answer: Extended enterprise resilience

Extended enterprise resilience recognizes that an organization's resilience is only as strong as the weakest link in its vendor and partner ecosystem.