Client Advisory Services Flashcards
7 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 7 Client Advisory Services flashcards as text
A client asks their advisor to help reduce the number of active suppliers by 30%. This initiative is called:
Answer: Supplier rationalization
Supplier rationalization is the deliberate process of reducing the supplier base to consolidate spend, lower administrative burden, and improve strategic relationships.
When advising on contract terms, an 'evergreen clause' means the contract:
Answer: Automatically renews unless either party provides notice to terminate
Evergreen clauses cause contracts to automatically renew at expiration unless a party actively provides notice, which can be risky if not monitored.
A client's organization lacks a formal procurement policy. The advisor's first recommendation should be to:
Answer: Develop a procurement policy framework with stakeholder input
A formal procurement policy framework, developed with stakeholder input, provides the governance foundation for all subsequent procurement activities.
In client advisory services, 'voice of the customer' (VOC) data is used to:
Answer: Understand internal stakeholder needs and satisfaction with procurement services
VOC data captures internal stakeholder feedback on procurement services, helping advisors identify gaps and improvement opportunities.
Which risk is most associated with single-source supplier arrangements?
Answer: Supply disruption if the sole supplier experiences operational problems
Single-source arrangements create concentration risk — any operational failure by the sole supplier can halt the client's operations entirely.
A procurement advisor is asked to help a client achieve 'early supplier involvement' (ESI). ESI is most valuable during which phase?
Answer: New product or service development and design
ESI during design phases allows suppliers to contribute technical expertise, reduce costs, and improve manufacturability before specifications are locked in.
When a client faces a procurement ethics complaint, the advisor's immediate responsibility is to:
Answer: Recommend following the organization's established ethics and investigation protocols
Established ethics protocols exist to ensure impartial, thorough, and legally defensible handling of complaints, and advisors must direct clients to follow them.