APP Strategic Sourcing & Procurement Planning Flashcards
6 cards from real APP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 APP Strategic Sourcing & Procurement Planning flashcards as text
Which sourcing approach involves selecting a single supplier for a category, accepting higher risk in exchange for deeper collaboration?
Answer: Single sourcing
Single sourcing concentrates all volume with one supplier to build a strategic relationship and achieve maximum price leverage, at the expense of supply continuity risk.
A 'Request for Information (RFI)' is BEST used at which stage of the strategic sourcing process?
Answer: Market intelligence gathering before issuing an RFP
An RFI is a low-commitment tool used early in sourcing to learn about supplier capabilities, capacity, and market pricing before developing formal solicitation documents.
Supplier 'pre-qualification' in strategic sourcing typically evaluates:
Answer: Financial stability, quality systems, capacity, and compliance before allowing them to bid
Pre-qualification screens suppliers on objective criteria such as financial health, certifications, capacity, and regulatory compliance to create an approved vendor list before sourcing events.
In a weighted-scoring supplier evaluation, a supplier with the lowest price but poor quality scores should:
Answer: Be evaluated on total weighted score, which may disqualify them despite low price
Weighted scoring balances multiple criteria — price, quality, delivery, financial strength — so a low-price supplier with poor quality scores may lose to a higher-priced but better-rounded competitor.
What is the primary benefit of a 'reverse auction' in strategic sourcing?
Answer: It drives competitive price reduction through real-time bidding among pre-qualified suppliers
In a reverse auction, pre-qualified suppliers compete in real time by lowering their bids, allowing buyers to achieve market-driven price reductions quickly.
A 'category strategy' document in strategic procurement typically includes:
Answer: Market analysis, spend baseline, sourcing options, recommended strategy, and savings targets
A category strategy provides a structured plan covering market intelligence, current spend, supply risk, sourcing options, and financial targets for a specific spend category.