Question 1

The chief procurement officer (CPO) for a large hospital system is planning to implement a new e-sourcing system. Satellite clinics and specialty centers will be authorized to process small orders through this system, rather than sending requests to the central supply management department, as has been done in the past. Which of the following actions by the CPO will MOST likely support a successful implementation of this system?

Options :

A : Providing regular progress reports to top management

B : Visiting similar organizations to see how their systems operate

C : Building a team of potential users to help define needs

D : Scheduling on-site demonstrations of leading software systems

Answer: C

Question 2

A supply manager is trying to leverage spend on travel and meeting services for a series of conferences to be held at various locations. The specifics of the conferences will vary according to location and cultural considerations. The organization seeks the best solution to help the conferences succeed. In this situation, which of the following will be MOST appropriate?

Options :

A : Request for Information (RFI)

B : Invitation for Bid (IFB)

C : Request for Proposal (RFP)

D : Non-competitive negotiations

Answer: C

Question 3

A supply manager for TUV, Inc. receives a call from an internal stakeholder complaining that for the past several months, one of TUV's longtime suppliers has been late with shipments, disrupting production. The Internal stakeholder has left several messages with the supplier, which have all gone unanswered. The supply manager listens to the stakeholder's concerns and states that these recent occurrences are atypical for this supplier. The supply manager offers to set up a call with the internal stakeholder and the supplier to discuss the situation and determine how the parties can move forward. Which of the following BEST describes the supply manager's role in this situation?

Options :

A : Negotiator

B : Mediator

C : Agent

D : Advocate

Answer: B

Question 4

As interest rates rise, what will MOST likely be the effect on supply?

Options :

A : Suppliers will lock in raw material prices in anticipation of price increases.

B : Suppliers will delay shipments by selling to other customers.

C : Bond prices will rise, forcing suppliers to pay more for capital investments.

D : The risk of supplier stock outs will increase due to higher costs of holding inventory.

Answer: D

Question 5

At what point in the development of a category strategy should spend review occur?

Options :

A : After key internal stakeholders agree on sourcing priorities

B : After development of the sourcing team

C : After presentation of the strategy to senior management

D : During validation of the savings or contribution

Answer: D

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