Supply Chain and Logistics Procurement and Sourcing

Question 1

What is the purpose of a Request for Proposal (RFP)?

Accepted Answer

Solicit detailed proposals from vendors for a product or service

Answer

Confirm delivery of purchased goods

Answer

Authorize payment to a supplier

Answer

Document inventory adjustments

Question 2

What is strategic sourcing?

Accepted Answer

A systematic approach to supply chain management that optimizes value across the supply base

Answer

Emergency purchasing to cover stockouts

Answer

Buying from the cheapest available supplier

Answer

Automating purchase order generation

Question 3

What is a purchase order (PO)?

Accepted Answer

A legally binding document sent to a supplier authorizing a purchase

Answer

A request for a price quote

Answer

A vendor invoice

Answer

A receiving inspection report

Question 4

What is supplier diversification?

Accepted Answer

Using multiple suppliers to reduce dependency and supply risk

Answer

Using one supplier for all products

Answer

Expanding into new product categories

Answer

Offering suppliers equity stake

Question 5

What does TCO stand for in procurement?

Accepted Answer

Total Cost of Ownership

Answer

Trade Compliance Order

Answer

Terms and Conditions of Operation

Answer

Tariff Classification Overview

Question 6

What is the three-way match process in accounts payable?

Accepted Answer

Matching a purchase order, receiving report, and supplier invoice before payment

Answer

Verifying price with three suppliers

Answer

Checking three currencies for best exchange rate

Answer

Confirming delivery with shipper, carrier, and buyer