Mixed Deck — All CLA Topics Flashcards

The Kraljic Matrix classifies purchased items by profit impact and supply risk primarily to:

Answer: Determine the appropriate procurement strategy for each spend category

The Kraljic Matrix plots items on two axes to categorize them as routine, leverage, bottleneck, or strategic, guiding differentiated buying strategies.

An Advance Ship Notice (ASN) sent via EDI helps a receiving warehouse primarily by:

Answer: Providing detailed shipment contents before the goods physically arrive, enabling pre-planned receiving

An ASN notifies the recipient of exactly what is being shipped and when, allowing dock scheduling, labor planning, and cross-docking before the truck arrives.

Reverse logistics refers to the processes involved in:

Answer: Moving goods from customers back through the supply chain for return, repair, or recycling

Reverse logistics manages product returns, repairs, remanufacturing, and end-of-life disposal, recovering value and complying with environmental regulations.

Which performance metric tracks the percentage of time a logistics provider meets the agreed-upon delivery window?

Answer: On-time delivery (OTD) rate

OTD rate measures what fraction of deliveries arrive within the committed window, directly reflecting transportation and fulfillment reliability.

Which document serves as a receipt for goods and a contract of carriage between a shipper and a carrier?

Answer: Bill of lading

A bill of lading is a legally binding document that acknowledges receipt of goods for shipment and specifies the terms of their transport.

Product liability in the supply chain means that manufacturers and distributors may be held responsible for:

Answer: Harm caused to consumers by defective or unsafe products they made or sold

Product liability law holds supply chain participants accountable for injuries or damage caused by products that are defective in design, manufacturing, or labeling.

What does a high order accuracy rate indicate?

Answer: Efficient order fulfillment

A high order accuracy rate indicates highly efficient order fulfillment processes. It means that customer orders are consistently picked, packed, and shipped correctly, with the right items and quantities, and without errors. This efficiency leads to increased customer satisfaction, reduced returns, and lower operational costs associated with correcting mistakes.

Which payment term gives a buyer a discount for early payment?

Answer: 2/10 net 30

2/10 net 30 means the buyer receives a 2% discount if payment is made within 10 days, otherwise the full amount is due in 30 days.

A proof of delivery (POD) document is important in logistics because it:

Answer: Provides evidence that the carrier successfully delivered the shipment to the correct recipient

A signed POD is the definitive record of successful delivery, used to resolve disputes, authorize payments, and trigger billing to the customer.

Which metric is most commonly used to evaluate the financial performance of a reverse logistics program?

Answer: Recovery Rate

Recovery Rate measures the percentage of value recaptured from returned goods through resale, refurbishment, or recycling, making it the key financial metric for reverse logistics.

In reverse logistics, what does 'disposition' refer to?

Answer: The decision made about what to do with a returned product

Disposition is the decision-making process that determines the fate of a returned product, such as resale, refurbishment, remanufacturing, recycling, or disposal.

Which component is NOT part of the traditional supply chain?

Answer: Advertising

The traditional supply chain primarily involves the physical movement and transformation of goods, including entities like suppliers (providing raw materials), distributors (moving products), and retailers (selling to consumers). While advertising is crucial for marketing and sales, it is generally considered a marketing function rather than a direct component of the physical flow and transformation within the supply chain itself.

Cloud-based logistics software offers which key advantage over traditional on-premise systems?

Answer: Lower upfront costs and scalability without managing local hardware infrastructure

Cloud solutions use a subscription model and provider-managed infrastructure, reducing capital expenditure and allowing organizations to scale capacity on demand.

A blanket purchase order (BPO) is best used when a buyer needs to:

Answer: Purchase recurring items from a supplier over a set period at agreed prices

A BPO establishes pricing and terms for repeated purchases of the same item over a defined timeframe, reducing administrative overhead.

Which customer service practice involves proactively notifying customers of shipment status, delays, or exceptions?

Answer: Proactive exception management

Proactive exception management uses tracking data to alert customers before they inquire, reducing inbound contacts and improving satisfaction.

Which risk mitigation strategy involves holding additional inventory to buffer against supply disruptions or demand spikes?

Answer: Safety stock

Safety stock is buffer inventory held above the expected demand to protect service levels against forecast error, lead time variability, and supply disruptions.

Which qualitative forecasting technique gathers anonymous expert opinions through iterative questionnaire rounds until consensus is reached?

Answer: Delphi method

The Delphi method uses structured rounds of anonymous expert feedback, with summarized results returned to participants until group consensus emerges.

Make-or-buy analysis in procurement evaluates whether a company should:

Answer: Produce a component internally or purchase it from an external supplier

Make-or-buy analysis compares the cost, capability, and strategic implications of internal production versus external procurement.

Which tool is commonly used to analyze large sets of logistics data?

Answer: Excel

Microsoft Excel is a widely used and powerful tool for analyzing large sets of logistics data due to its robust spreadsheet capabilities. It allows users to organize, calculate, filter, and visualize data, making it effective for tasks like inventory tracking, cost analysis, and performance reporting. Its accessibility and versatility make it a staple for many logistics professionals.

Which of the following tools is commonly used to track warehouse inventory?

Answer: Barcode scanner

A barcode scanner is a fundamental tool used to track warehouse inventory by quickly and accurately reading product information. When an item is moved, received, or shipped, scanning its barcode instantly updates the inventory management system. This technology significantly improves data accuracy, reduces manual errors, and enhances overall warehouse efficiency.