CSCMP Supply Chain Foundations: Procurement Professional
Market sensitivity is a key component of the agile supply chain. TRUE or FALSE
TRUE
Supply chain strategy is the operational execution of the business mission. It is how you _____ to your customers.
Deliver Value
What are the four types of Supply Chain Risk?
Demand Side, Supply Side, Process, Control
What typically results when a supply chain experiences disruption?
Customers cannot get what they want and businesses lose money.
Which items are EXTERNAL sources of supply chain risk? (Find 3)
Environmental, Demand Side, Supply Side
What are the 3 T's of the agile supply chain?
Time, Transparency, Trust
The bullwhip effect and Forrester effect are terms to describe what aspect of supply chain oscillations?
demand amplification
What are Supply Chain Oscillations?
Late deliveries, Cancelled orders, Inventory reliance, Higher Cost
What is Demand Risk?
Fluctuations in demand disturb flow of product, information and cash.
What is Supply Risk?
Fluctuations in supply disturb flow of product, information and cash.
What are examples of Supply Risk
Risk material shortages, Delivery delays, Prices changes
What are Environmental Risk
Uncontrollable events that impact the business directly, or through suppliers or customers
What is ESG Risk?
Environmental, Social and Governance (ESG)
What are two categories for INTERNAL Risk?
Processes, (Lack of mitigation) and Controls (contingency)
Mitigation and Contingency are the management options for internal risk? TRUE or FALSE
TRUE
Organizations have two options to manage INTERNAL risk.
Lack of Mitigation and Contingency
Controls are the rules that ensure a particular behavior. TRUE or FALSE
TRUE
What is a hedge against risk or doing things that prevent loss or save money?
Mitigation
What is a plan that all Stakeholders must understand that resources and plans you can use if the risk is identified?
Contingency
What are Supply Chain Controls?
Order Quantities, Batch Sizes, Safety Stock Policies and Policies that governing asset management
What action is taken to reduce risk?
Mitigation
What are examples to reduce risk mitigations?
Buying before a price boost and Booking production early
What are three things that can lead to Oscillations?
Demand Amplifications, bullwhip effect or Forrester effect
Parrallel Interactions, ripple effect
Deterministic Chaos or Chaos effect
Parallel Interactions (Oscillations) are also known as?
Ripple Effect
The amount of vulnerability embedded in a supply chain is called?
Risk Profile
Making rapid strategic changes to adapt to unpredictability is called?
Supply Chain Agility
What does agility imply?
Responsiveness
What is an example of unethical conduct?
Reciprocity
What defines behavior maintains legal compliance and establish goals to achieve environmental excellence? (Pick 2)
Purchasing Policies
Supplier Code of Conduct
What does TQM stand for?
Total Quality Management
What is a contract?
An agreement between two parties to accomplish a specific task
What contract allows you to purchase items as needed throughout the year getting the volume discount without having to hold extra inventory?
A blanket purchase order
What is a legal contract obligating a buyer to buy and a seller to sell a product or service.
Purchase Agreement
The most extreme form of a favor is called?
A kickback
aAprofessional organization for purchasing offers a code ethics for the industry and their standards of conduct.
Institute for Supply Management (ISM)
Comparing a supplier's price to existing benchmarks is called
Price Analysis
How determining a supplier's cost to produce a product or service by doing what?
Cost Analysis
A study of all the costs of a particular transaction which ensures you capture all the costs of the transaction
Total Cost Analysis
What is the salvage value or disposal cost?
end-of life costs
Business-to-business commerce is called?
E-sourcing
A standard information format suppliers use to share data. It helps supplier to automatically place orders over the internet.
Electronic Data Interchange (EDI)
What is the most typical purchasing metric used today?
price attained versus price planned
Which model will help you to bring your new product to market at a competitive price and still allow a reasonable profit?
Target Cost Model
Carrying out a total cost of ownership analysis takes a lot of time and resources, so this type of analysis should only be used for _ purchases.
the larger and more significant
Which of these is NOT a model for determining a fair and reasonable price for a purchase?
market analysis
This analysis helps to estimate the demand for your product, but not the price you pay for purchased goods.
A market analysis
Which choice is a key enabler for success in worldwide sourcing?
all of these choices
Strategic sourcing is a _____ supplier engagement framework that ensures a business has the right suppliers to meet short and long term _____objectives.
proactive, strategic
What are the four quadrants in the Kralik supplier segmentation model?
Non-Critical, Leverage, Bottleneck, and Strategic
What are the two major converging supply chain trends affecting all manufacturing suppliers' development?
transition from linear supply networks to data-driven digital supply networks and circular supply chains
Which of these is not a characteristic of a linear supply chain?
Information is usually available and transparent in process areas.
When applying the 80/20 rule, organizations spend _____ percent of their money with _____ of the suppliers.
80%, 20%
What are the five types customer-supplier supply chain relationships?
Transactional, Commercial, Proactive, Strategic, and Class-Leading
In the Cross-Enterprise Operational Maturity Assessment graphic, in which area is the performance benchmarking done?
Financial and Material Control
What the the qualitative benchmarking tool that compares a supplier's self-assessed level of maturity with that of its customers' best practices in 12 operational areas?
Cross-Enterprise Operational Maturity Index
What does the Cross-Enterprise Operational Maturity Index measure?
Relative Maturity
How can organizations such as the Smart Automation Certification Alliance (SACA) support the development and implementation of a workforce strategy?
Provide credentialing support.
A private organization funded by the US Department of Labor that only provides credentialing services in specific Industry 4.0 skill set areas. Individual training is provided as needed through community colleges and other resources and provides testing for credentialing individuals regardless of where they learned their skills.
Smart Automation Certification Alliance (SACA)
What are the three primary traditional drivers for an organization setting supplier diversity goals?
Public sector regulatory compliance, social benevolence, and supply chain performance alignment
What are the three primary drivers for organizations setting diversity goals are public sector
compliance, social benevolence, and supply chain performance alignment.
Which is a consideration when selecting your negotiation style?
the importance of the outcome for this specific negotiation
This style means you have low value of relationship, you're not going to see this person in the future. Low importance of the outcome. It's not a big deal if you win the negotiation.
Splitting the pie
You have higher importance of the relationship, but the outcome it still low in terms of its importance. You want to maintain the relationship
Serving the pie
The relationship has very low value. But the importance of the outcome is very high
Take the pie
The relationship is very valuable. You want to maintain and strengthen it. The value of the importance of the outcome is very high. Try to create new opportunities for both parties where both of you can get more value from that partnership.
Expand the pie
_________ are initial points from which you'll negotiate a deal
Anchors
What negotiating style is using an additional real or imaginary authority?
The invisible man
Negotiating by acting like an unimportant detail is critical and then trading it away as a major concession later
The Bogey
What is the negotiating style asking for something extra, right before closing a deal? This can upset the other party.
The Nibble
Negotiating by offering an extraordinarily high or low anchor.
The highball or lowball
Negotiating using the promise of a future value to the other party. This is where you promise more value tomorrow in exchange for concessions today.
Future Value
The style of negotiating rounds of negotiations. Every time you have a deal done, there is one more negotiator they did not tell you about.
The multiple rounds
Why are more than 80% greenhouse gas emissions found in supply chain?
the impact of sourcing of the product, manufacturing the product, moving, distribution, and delivery to your door.
How do you partner and choose the right suppliers to help you meet your sustainability goals?
Look for proven commitment to sustainability, clear vision, and SLA’s to back it up
You understand that to have a true sustainability program, you must include your supplier partners. How can you get started?
by using your procurement policies
Why are the United Nation sustainable development goals important to a sustainability plan?
They help guide towards a long-term sustainability strategy that aligns with other leaders from across the globe.
Why is visibility important to sustainability?
Visibility is being used industry-wide to enforce responsibility.
To have success in a collaborative spirit with suppliers, what else must all parties commit to?
transparency
In a study of lower-tier suppliers in various countries violating sustainability expectations of their multinational customers, which violation was found most prevalent among US suppliers?
a high concentration of airborne chemicals and a lack of systematic accident reporting
___________data will give you solid facts and figures.
Quantitative
_________________data will help bring context and a marketable story to your goals.
Qualitative
What is a continuous process that requires regular analysis, innovation and improvement?
Sustainability
You completed your supply chain mapping and are ready to make your first recommendations. How can you achieve the greatest credibility with stakeholders?
by providing evidence based on data
You are considering hiring a knowledgeable data partner. What is considered the most important ability you should look for?
the ability to find suppliers who share your sustainability goals
Why is it important to have a trusted partner to successfully capture and interpret key sustainability data?
Collaboration can help you fill your knowledge and technology gaps.
Why is data important to achieve sustainability targets?
Data helps you evaluate your plan, measure your impact, and highlight efficiencies.
How should you collect and use data in order to best meet your sustainability goals?
You need to implement the right data capture before a project begins, to give you the information you need later.
How can you best leverage your successful sustainability strategy into a competitive advantage?
Promote your strategy and its successes externally.
Your company's sustainability goals are created, but you do not know whether you have the experience to work on them to completion. What should you do?
Find a cause outside your company that you can volunteer to work in.
Why is it important to understand the next steps to your sustainable supply chain plan?
Sustainability is a continuous process that requires regular analysis, innovation, and improvement.