Strategic Procurement and Vendor Management Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Strategic Procurement and Vendor Management flashcards as text
A supplier scorecard tracks delivery, quality, and cost performance. Which metric best captures a supplier's responsiveness to problem resolution?
Answer: Mean time to corrective action (MTCA)
MTCA measures how quickly a supplier identifies and resolves issues, directly reflecting their responsiveness and commitment to the relationship.
Under the Kraljic Matrix, how should a procurement manager treat 'bottleneck' items?
Answer: Secure supply continuity even at premium cost
Bottleneck items have high supply risk but low profit impact, so ensuring reliable supply—even at higher cost—takes priority over price optimization.
A request for proposal (RFP) differs from a request for quotation (RFQ) primarily because an RFP:
Answer: Invites suppliers to propose solutions and approaches, not just prices
An RFP solicits supplier solutions, methodologies, and value propositions, making it suitable for complex or service-based procurements where approach matters.
Supplier development programs are most justified when a company relies on a critical supplier that:
Answer: Lacks capability but is strategically important and difficult to replace
Investing in supplier development is rational when a strategically vital supplier has performance gaps that pose risks and alternative sources are limited.
Which contract type places the greatest financial risk on the buyer in a procurement context?
Answer: Cost-plus-percentage-of-cost contract
A cost-plus-percentage-of-cost contract gives the seller no incentive to control costs since their fee increases as costs rise, maximizing buyer risk.
A company wants to improve procurement cycle times for routine purchases. The best solution is to implement:
Answer: P-cards (procurement cards) and catalog-based e-procurement
P-cards and electronic catalogs streamline low-value, repetitive purchases by empowering users to buy directly within pre-approved parameters.
When a key supplier is acquired by a competitor, the most immediate procurement concern is:
Answer: Potential preferential treatment of the competitor and supply security risk
Competitor ownership of a critical supplier creates a conflict of interest that may jeopardize supply continuity, pricing fairness, and confidential information.