CSCP FREE Certified Supply Chain Professional (CSCP) Sourcing Products and Services Questions and Answers 3

Question 1

In supplier evaluation, what does the term 'supplier scorecarding' primarily measure?

Accepted Answer

Ongoing supplier performance against defined KPIs

Answer

Supplier market share

Answer

Supplier employee satisfaction

Answer

Supplier advertising effectiveness

Question 2

Which sourcing approach is most appropriate when supply market risk is high and the item has strategic importance?

Accepted Answer

Strategic alliance or partnership

Answer

Spot purchasing

Answer

Competitive bidding

Answer

Reverse auction

Question 3

What is the main advantage of using group purchasing organizations (GPOs) in sourcing?

Accepted Answer

Leveraging collective buying power for better pricing

Answer

Faster product development cycles

Answer

Simplified regulatory compliance

Answer

Reduced need for quality audits

Question 4

During the sourcing process, what is the purpose of conducting a spend analysis?

Accepted Answer

To categorize and understand current purchasing patterns and expenditures

Answer

To forecast future product demand

Answer

To evaluate warehouse storage capacity

Answer

To determine employee headcount needs

Question 5

What risk does over-reliance on a single geographic region for sourcing create?

Accepted Answer

Concentration risk from natural disasters or geopolitical disruptions

Answer

Increased transportation efficiency

Answer

Higher supplier competition

Answer

Lower communication barriers

Question 6

Which clause in a sourcing contract protects the buyer if a supplier fails to meet agreed service levels?

Accepted Answer

Liquidated damages clause

Answer

Force majeure clause

Answer

Non-disclosure clause

Answer

Arbitration clause