CRP CRP Supply Chain Resilience & Vendor Management 1 — Questions and Answers
Question 1: What is the primary purpose of a supplier criticality assessment in supply chain resilience planning?
- To evaluate vendor pricing
- To rank suppliers by their impact on critical operations if they fail (Correct answer)
- To measure delivery speed
- To audit supplier environmental practices
Correct answer: To rank suppliers by their impact on critical operations if they fail
A supplier criticality assessment ranks vendors by operational impact to help prioritize resilience investments and contingency planning.
Question 2: Which strategy best reduces single-source dependency risk in a supply chain?
- Extending vendor contracts
- Dual or multi-sourcing critical components (Correct answer)
- Increasing safety stock only
- Requiring vendors to carry insurance
Correct answer: Dual or multi-sourcing critical components
Dual or multi-sourcing ensures an alternative supplier exists if the primary source is disrupted, directly reducing single-source dependency.
Question 3: A Vendor Risk Assessment (VRA) should be performed at which point in the vendor lifecycle?
- Only at contract renewal
- Only after a vendor incident
- Before onboarding and periodically thereafter (Correct answer)
- Exclusively during annual audits
Correct answer: Before onboarding and periodically thereafter
Vendor risk assessments must occur before onboarding to establish a baseline and periodically thereafter to detect changes in vendor resilience posture.
Question 4: What does a Mutual Aid Agreement (MAA) between organizations provide in supply chain resilience?
- Shared marketing resources
- Pre-arranged reciprocal support during disruptions (Correct answer)
- Joint ownership of assets
- Reduced regulatory requirements
Correct answer: Pre-arranged reciprocal support during disruptions
Mutual Aid Agreements establish pre-negotiated terms for organizations to share resources, personnel, or services during a disruption.
Question 5: Which metric is most useful for measuring supply chain vulnerability to disruption?
- Supplier profit margin
- Mean Time to Recovery (MTTR) for critical suppliers (Correct answer)
- Vendor employee headcount
- Number of active contracts
Correct answer: Mean Time to Recovery (MTTR) for critical suppliers
MTTR for critical suppliers quantifies how long recovery takes after a disruption, directly measuring supply chain vulnerability.
Question 6: What is a key element of a robust supplier Business Continuity Plan (BCP) review process?
- Requiring suppliers to use your BCP template verbatim
- Verifying suppliers have tested their plans within the past 12 months (Correct answer)
- Confirming suppliers are insured
- Reviewing supplier financial statements only
Correct answer: Verifying suppliers have tested their plans within the past 12 months
Verifying that suppliers have recently tested their BCPs confirms plans are actionable, not just documented.
CRP CRP Supply Chain Resilience & Vendor Management 1
What is the primary purpose of a supplier criticality assessment in supply chain resilience planning?