CSCP practice question 2 of 35

A company planning to build collaborative relationships with trading partners should first:

Full set: 627 questions
Answer options
A: implement technology for information sharing.
B: document transaction rules and procedures.
C: organize cross-enterprise teams.
D: ensure commitment from top management. Correct answer
Correct Answer:
D. ensure commitment from top management.
Explanation

The foundational step for any significant strategic initiative, such as building collaborative supply chain relationships, is securing commitment from top management. This commitment ensures the initiative is aligned with corporate strategy, allocates necessary resources (financial, human, technological), and provides the authority needed to drive cross-functional and cross-enterprise change. Without executive sponsorship, efforts to implement technology, define rules, or form teams are likely to fail due to a lack of support, direction, and resources. This principle is a cornerstone of organizational change management.

Why Incorrect

A. Implementing technology is a tactical step that supports collaboration but should only occur after the strategy and commitment are established.
B. Documenting rules and procedures is necessary for governing the relationship, but this follows the strategic decision and commitment to collaborate.
C. Organizing cross-enterprise teams is an execution step that requires prior executive approval and a defined collaborative framework to be effective.

References

1. Handfield, R. B. (2020). Supply Chain Management: Strategy, Planning, and Operation (7th ed.). Pearson. In discussions on strategic fit and supply chain drivers, the text emphasizes that major supply chain decisions, including strategic partnerships, must align with and be driven by the overall competitive strategy, which is set and supported by top management (Chapter 2).

2. APICS CSCP Learning System (2022). Module 3, Section A, Topic 1: Relationship Management. The material consistently highlights that executive sponsorship is critical for establishing and maintaining successful supply chain relationships, as it signals the strategic importance of the collaboration.

3. Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2014). Supply Chain Management: From Vision to Implementation. Pearson. The text underscores that successful supply chain initiatives require a "guiding coalition" led by senior executives to provide vision, legitimize change, and empower employees (Chapter 15: Leading Supply Chain Change).

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