CSCP practice question 19 of 35

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

Full set: 627 questions
Answer options
A: Reduction in redundant processes with buyer Correct answer
B: Increase in price of items sold
C: Increase in access to competitive information
D: Reduction in number of items utilizing vendor-managed inventory (VMI)
Correct Answer:
A. Reduction in redundant processes with buyer
Explanation

Supplier certification programs are designed to build trust and verify that a supplier meets the buyer's quality, delivery, and process standards. A significant benefit for the supplier is the resulting operational efficiency. Once certified, the buyer often eliminates redundant processes such as incoming inspections and extensive quality audits. This streamlining reduces administrative overhead and lead times for both parties, fostering a more collaborative and efficient partnership.

Why Incorrect

B. Certification does not automatically lead to a price increase; in fact, the associated efficiency gains may support more competitive pricing.
C. Sharing sensitive information about competitors is unethical and is not a feature of a professional buyer-supplier certification program.
D. A trusted, certified supplier is an ideal candidate for a vendor-managed inventory (VMI) program, which would likely increase, not decrease, its scope.

References

- APICS CSCP Learning System, Version 5.0 (2022), Module 2, Section B, Topic 1, "Supplier Relationship Management." This section details how supplier certification builds trust, leading to the elimination of redundant activities like incoming inspections.

- Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning. Chapter 10 discusses supplier quality management, noting that a key outcome of certification is the buyer's ability to reduce or eliminate receiving inspections.

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