Supplier Relationship Management Flashcards
6 cards from real CSCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Supplier Relationship Management flashcards as text
What is 'collaborative planning, forecasting, and replenishment' (CPFR)?
Answer: A structured process where trading partners share data and jointly create demand forecasts and replenishment plans
CPFR is a trading partner collaboration model that replaces independent forecasting with joint planning to improve forecast accuracy and reduce supply chain costs.
What is 'supply chain transparency' in the context of ethical sourcing?
Answer: The ability to see and verify labor, environmental, and social practices across all tiers of the supply chain
Ethical sourcing transparency requires visibility beyond tier-1 suppliers to ensure no labor violations, environmental harm, or corruption exists anywhere in the chain.
In supplier risk management, 'concentration risk' refers to:
Answer: Over-reliance on a single supplier or geography for a critical input, creating vulnerability to disruption
Concentration risk arises when too much of a critical supply is sourced from one supplier or region, making the buyer highly vulnerable to that source's disruption.
What is the primary benefit of 'open book costing' in supplier negotiations?
Answer: The supplier shares cost breakdowns, enabling collaborative cost reduction and fair price agreements
Open book costing enables joint identification of cost reduction opportunities because both parties can see exactly where money is being spent.
A 'supplier code of conduct' is used primarily to:
Answer: Define minimum ethical, labor, environmental, and safety standards suppliers must meet to do business with the company
Supplier codes of conduct set baseline ESG (environmental, social, governance) expectations that all suppliers must comply with as a condition of doing business.
Which approach best describes 'strategic sourcing'?
Answer: A disciplined, data-driven process for evaluating total spend, supply markets, and supplier capabilities to maximize value
Strategic sourcing uses spend analysis, market intelligence, and cross-functional teams to develop category strategies that optimize total value — not just price.