CSCP Supplier Relationship Management 3

Question 1

What is 'collaborative planning, forecasting, and replenishment' (CPFR)?

Accepted Answer

A structured process where trading partners share data and jointly create demand forecasts and replenishment plans

Answer

An internal S&OP process for aligning departments

Answer

A software system for automating purchase orders

Answer

A supplier audit methodology for forecasting accuracy

Question 2

What is 'supply chain transparency' in the context of ethical sourcing?

Accepted Answer

The ability to see and verify labor, environmental, and social practices across all tiers of the supply chain

Answer

Publishing supplier names and contract prices publicly

Answer

Sharing internal cost structures with suppliers during negotiation

Answer

Providing customers with real-time shipment tracking

Question 3

In supplier risk management, 'concentration risk' refers to:

Accepted Answer

Over-reliance on a single supplier or geography for a critical input, creating vulnerability to disruption

Answer

The risk of a supplier absorbing too many of your purchase categories

Answer

A supplier's financial risk from serving too few customers

Answer

The risk of too many suppliers creating management complexity

Question 4

What is the primary benefit of 'open book costing' in supplier negotiations?

Accepted Answer

The supplier shares cost breakdowns, enabling collaborative cost reduction and fair price agreements

Answer

The buyer can audit the supplier's financial statements for stability

Answer

The supplier can review the buyer's budget to maximize pricing

Answer

Both parties can verify invoice accuracy and prevent billing errors

Question 5

A 'supplier code of conduct' is used primarily to:

Accepted Answer

Define minimum ethical, labor, environmental, and safety standards suppliers must meet to do business with the company

Answer

Specify technical product quality requirements and tolerances

Answer

Establish pricing and payment terms for the supplier relationship

Answer

Outline the dispute resolution process for contract violations

Question 6

Which approach best describes 'strategic sourcing'?

Accepted Answer

A disciplined, data-driven process for evaluating total spend, supply markets, and supplier capabilities to maximize value

Answer

Buying from the lowest-price supplier found through competitive bidding

Answer

Consolidating all purchases with a single preferred distributor

Answer

Automating purchase order creation through ERP integration