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Question 393 - CSCP discussion

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Which of the following benefits should a supplier expect to receive by becoming a certified supplier?

A.
Reduction in redundant processes with buyer
Answers
A.
Reduction in redundant processes with buyer
B.
Increase in price of items sold
Answers
B.
Increase in price of items sold
C.
Increase in access to competitive information
Answers
C.
Increase in access to competitive information
D.
Reduction in number of items utilizing vendor-managed inventory (VMI)
Answers
D.
Reduction in number of items utilizing vendor-managed inventory (VMI)
Suggested answer: A

Explanation:

Becoming a certified supplier typically involves meeting specific quality, delivery, and performance standards. Certified suppliers benefit from streamlined processes, such as reduced inspections, fewer audits, and faster payment cycles, which eliminate redundant procedures. This certification indicates a high level of trust and reliability, allowing both parties to reduce administrative burdens and focus on more value-added activities. While other benefits like price increases or competitive information might occur, the primary advantage is operational efficiency and process optimization.

Reference:

APICS Dictionary

'The Procurement and Supply Manager's Desk Reference' by Fred Sollish and John Semanik

asked 16/09/2024
Chris Morris
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