CRP Vendor Management and Quality Assurance 2 — Questions and Answers
Question 1: What is a 'net-cost pricing' model in relocation vendor contracts?
- The vendor charges only for services actually used, with no markup or management fee (Correct answer)
- The vendor provides services at a discount in exchange for referral fees
- The employer pays all vendor costs plus a fixed admin fee to the RMC
- Vendors set prices based on the employee's salary level
Correct answer: The vendor charges only for services actually used, with no markup or management fee
Net-cost pricing means the employer pays actual supplier costs without markup; the RMC earns revenue through management fees or referral fees rather than service markups.
Question 2: What does 'quality assurance auditing' in a relocation program typically involve?
- Financial auditing of employee expense claims only
- Systematic review of vendor performance data, transferee surveys, and process adherence (Correct answer)
- Inspection of household goods before loading
- Verifying that all vendors are licensed
Correct answer: Systematic review of vendor performance data, transferee surveys, and process adherence
QA auditing encompasses data analysis, file reviews, surveying transferees, and process checks to ensure services meet policy and quality expectations.
Question 3: Which transferee survey metric is most commonly used as a top-level indicator of relocation service quality?
- Net Promoter Score (NPS) (Correct answer)
- Cost per move
- Days to sell the home
- Number of invoices processed
Correct answer: Net Promoter Score (NPS)
NPS asks transferees how likely they are to recommend the relocation program, providing a single, comparable measure of overall satisfaction.
Question 4: What is the purpose of a 'vendor certification' requirement in corporate relocation programs?
- To ensure all vendors are publically traded companies
- To verify that vendors meet minimum standards for licensing, insurance, and professional competence (Correct answer)
- To restrict vendors from working with competitors
- To eliminate the need for SLAs
Correct answer: To verify that vendors meet minimum standards for licensing, insurance, and professional competence
Vendor certification requirements protect transferees and employers by ensuring service providers carry proper credentials, insurance, and comply with regulatory requirements.
Question 5: Which relocation industry organization provides quality-certification programs for RMCs and their service networks?
- SHRM
- Worldwide ERC (Correct answer)
- NAHB
- RESPA Institute
Correct answer: Worldwide ERC
Worldwide ERC (Employee Relocation Council) is the primary professional association for the relocation industry, offering certifications, training, and research including the CRP designation itself.
Question 6: What does 'invoice auditing' protect against in a corporate relocation program?
- Employee fraud in expense reporting only
- Billing errors, duplicate charges, and services invoiced but not rendered by vendors (Correct answer)
- Underuse of approved benefits by employees
- Vendor license expirations
Correct answer: Billing errors, duplicate charges, and services invoiced but not rendered by vendors
Invoice auditing catches overcharges, duplicate billing, and incorrect service codes before payment, directly reducing program costs.
CRP Vendor Management and Quality Assurance 2
What is a 'net-cost pricing' model in relocation vendor contracts?