Vendor Management & Procurement Flashcards
7 cards from real CTE practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 7 Vendor Management & Procurement flashcards as text
In a telecommunications vendor SLA, what does a 99.99% uptime commitment translate to in maximum allowable annual downtime?
Answer: Approximately 52.6 minutes per year
99.99% uptime (four nines) allows for 0.01% downtime annually, which equals approximately 52.6 minutes of allowable outage per year.
Which SLA metric measures the average time required for a carrier to restore service after a reported outage?
Answer: Mean Time to Repair (MTTR)
MTTR quantifies vendor responsiveness by averaging the time elapsed between fault detection and full service restoration across all incidents.
A telecommunications executive implementing a vendor scorecard should prioritize which combination of Key Performance Indicators (KPIs)?
Answer: Network availability, ticket resolution time, billing accuracy, and escalation response
Operational KPIs such as availability, resolution time, billing accuracy, and escalation response directly measure vendor performance against service commitments and business impact.
Service credits in a telecom SLA are best described as:
Answer: Contractual financial remedies provided to the customer when the vendor fails to meet agreed performance thresholds
Service credits are pre-negotiated remedies, typically expressed as a percentage of the monthly recurring charge, automatically applied to the customer's invoice when SLA thresholds are breached.
During a quarterly business review (QBR) with a telecom vendor, a telecommunications executive should primarily use the session to:
Answer: Review performance against SLA metrics, address escalations, and align on roadmap and continuous improvement initiatives
QBRs are structured governance touchpoints focused on SLA compliance review, issue resolution, relationship alignment, and strategic planning between the customer and vendor.
Which approach to vendor performance management proactively addresses issues before they cause SLA breaches?
Answer: Continuous monitoring with defined warning thresholds and escalation triggers below SLA breach levels
Proactive monitoring with intermediate warning thresholds allows the telecom executive to engage vendors and initiate corrective action before performance degrades to SLA-breach levels.
A telecommunications executive wants to benchmark a carrier's pricing against industry peers. Which resource provides the most credible independent data?
Answer: Third-party analyst reports, telecom consultancies, and consortium benchmarking databases
Independent analyst firms, specialized telecom consultancies, and industry benchmarking consortia provide objective pricing data based on aggregated real-world contract data across multiple buyers.