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LEAD Leadership and Transformation in Supply Management Questions and Answers

Questions 4

RST Petroleum and Fuel, Inc. ensures that its refineries follow all OSHA regulations, particularly with regard to personal protection and safety training. RST's Safety Data Sheets (SDS) are accessible on the intranet for all employees to view.

RST hires a new janitorial service to clean all of its offices, restrooms and showers. The janitorial service insists on supplying its own cleaning products. RST agrees to this, but wants the service to provide the SDS for its products, to be posted on the RST intranet site. Although the janitorial service has been working at RST for three months and has been doing an excellent job, it fails to provide RST with the requested information.

Given this situation, which of the following should RST do?

Options:

A.

Cancel the contract with the janitorial services firm for breach

B.

Discontinue work with the janitorial services firm until the SDS are provided

C.

Ignore the situation, as the OSHA regulations do not pertain to a contractor’s materials

D.

Notify the janitorial service that it is in breach of contract

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Questions 5

A manufacturer of multi-media equipment plans to expand into new product areas requiring materials and components the firm has not previously purchased, as well as greater reliance upon global suppliers. The timeline for the project will be very demanding. The firm’s supply manager has experience with enterprise resource planning (ERP) and believes ERP will be helpful for the new project. The firm has never before invested in such technology and does not have the resources to do so. Given this situation, which of the following actions should the supply manager take?

Options:

A.

Manage the project using the firm's current process

B.

Present top management with justification for the cost of the new system

C.

Train supply management staff in material optimization concepts

D.

Hire additional staff with ERP expertise

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Questions 6

Which of the following integrates various functions within an organization, including forecasting, materials management and purchasing?

Options:

A.

Enterprise resource planning

B.

Business intelligence software

C.

Performance management software

D.

Material requirements planning

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Questions 7

MNO, Inc. is a small global manufacturing company. The firm hires a new director of procurement to change the culture within the procurement team and focus on organization-wide key performance indicators (KPIs). The director suggests tracking the number of purchase orders created by each buyer across the organization to establish a baseline of activity. Smith, the department's senior buyer, is completely opposed to this KPI, and discovers that the other buyers are as well. Smith is concerned that many staff will resign if the director's initiative is instituted. Given this situation, which of the following is the BEST course of action for Smith to take?

Options:

A.

Consult with the director and share all staffing risks if this KPI is implemented as a priority

B.

Advise the director that the entire staff is open to new KPIs but will not track the number of purchase orders

C.

Advise the firm's CEO in a private meeting that the number of purchase orders should not be tracked unless the company is prepared for multiple resignations

D.

Remain silent on the specific concerns about the KPI, but mention that there may be problems if it is implemented

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Questions 8

A buyer from BCD, Inc. meets with an industry peer at a professional conference and tells the peer that Supplier X provides a low quality product, when in fact Supplier X provides a high quality product. The buyer makes the statement in the hope of retaining BCD's competitive edge, but as result of the conversation, the peer removes Supplier X from participation in an upcoming RFP. The buyer's statement can BEST be described as

Options:

A.

extortion

B.

slander

C.

libel

D.

disparagement

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Questions 9

A firm’s five-year strategic plan forecasts annual sales revenue growth primarily based on product quality improvements. The firm's chief procurement officer (CPO) wants to monitor supply management's contribution to the plan by applying business intelligence. Which of the following is the BEST way for the CPO to achieve this objective?

Options:

A.

Measure the quality of the firm's primary suppliers and their degree of collaboration with the company's business units

B.

Monitor supply trends and developments, and the political and economic changes that affect primary suppliers and raw materials

C.

Assign supply managers by company function rather than supply category, to better focus attention on reaching the firm's objectives

D.

Certify at least two new suppliers annually, to manage supply risk and to keep current suppliersfocused on quality improvements

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Questions 10

A supply manager for CDE Inc. hires several young supply management professionals. The new staff members are eager to gain experience and use their technological skills. Some staff members, however, are planning to retire, and the supply manager does not want to lose their expertise and perspective. Given this situation, which of the following is the BEST course of action for the supply manager to take?

Options:

A.

Use functional rotation to expand the new employees' skills

B.

Match new employees with experienced employees in mentoring relationships

C.

Facilitate hands-on training and internal workshops for the new staff members

D.

Offer the new staff members opportunities to work on special projects

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Questions 11

Which of the following is the BEST example of a corporate social responsibility audit procedure?

Options:

A.

Enhancing talent management skills

B.

Creating an intranet forum to discuss organizational objectives

C.

Checking chemical safety data sheets regularly

D.

Conducting diversity awareness training

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Questions 12

A supply manager for JKL, Inc. has been asked to develop a risk management plan for suppliers. The supply manager has identified the sources of risk and the probability of occurrence. In order to develop a risk management process, the supply manager should NEXT

Options:

A.

execute the risk management strategy

B.

allocate resources to address the risk

C.

develop a risk profile

D.

estimate the likely impact of the risk

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Questions 13

Which of the following factors influencing department effectiveness are MOST directly under supply management's control?

Options:

A.

Supplier performance

B.

Staff capabilities

C.

Future supply needs

D.

Organizational objectives

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Questions 14

CDE Corporation prides itself on maintaining high standards of social responsibility and expects its suppliers to adhere to similar standards, especially for safety. CDE identifies potential sources and wants to be sure on-site personnel at these suppliers are trained in CDE's procedures. Which of the following is the BEST course of action for CDE to take to ensure suppliers receive safety training in compliance with its expectations?

Options:

A.

Send a team from its headquarters to conduct classes for the suppliers' employees in each location

B.

Include an attachment to suppliers' contracts requiring them to acknowledge CDE's safety training plan

C.

Deploy a web-based module detailing all safety procedures to each of the suppliers

D.

Engage local trainers to lead classes using curricula specified by CDE

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Questions 15

An assistant contract administrator has been promoted to a newly-created contract management position in charge of sourcing a new product line. The position will work closely with other departments. The new manager is familiar with the firm's general procedures and organization but needs to expand skills in areas related to the increased responsibilities of the new position.

Which of the following will be MOST effective in this situation?

Options:

A.

Exploring outside professional development opportunities

B.

Concentrating on training in new technologies

C.

Providing mentors to assist with orientation

D.

Employing functional rotation with related departments

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Questions 16

A supply manager wants to promote interdepartmental interaction, encourage highly-motivated employees, and expand understanding of how supply management's role relates to the larger organization. The manager hopes to improve long-range planning and help internal customers gain an appreciation for supply management's value. Which of the following would MOST likely help to achieve the supply manager’s goal?

Options:

A.

Job rotation

B.

Sponsor/mentor

C.

Computer-based training

D.

Gap analysis

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Questions 17

CDE, Inc. designates a team comprised of finance and procurement professionals to develop and implement a "No PO/No Pay” policy for the organization. The goal is for the firm to have 100% purchase order (PO) usage. The team spends twelve months re-structuring processes, defining metrics, and conducting employee training sessions on the policy. However, six months after launch, the level of PO adoption shows only a modest increase from 9% to 12%. Which of the following could the team have done to BEST ensure greater success in this initiative?

Options:

A.

Included stakeholders on the initial project team to foster buy-in and promote ownership

B.

Set a more reasonable target goal, as the policy and processes are new to most end-users

C.

Offered more robust training prior to launch to make it easier for end-users to adapt to the change

D.

Spent more time developing the policy, re-structuring related processes, and defining metrics

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Questions 18

A cross-functional team for a specialty art materials manufacturer is analyzing several hobby painting sets, each made at a different location. The supply manager asks the team to discuss packaging needs. As brainstorming progresses, a few team members comment that many paint jars look quite similar, and one member asks whether distinctive labels could be used to differentiate various types of paint. This change is implemented, saving costs through larger volumes and minimized shortages. Which of the following BEST describes what process the supply manager has facilitated?

Options:

A.

Aggregation

B.

Internal negotiations

C.

Contribution to profit

D.

Synergy

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Questions 19

A tech company creates several innovative software programs for internal usage, including a program that streamlines supply chain management. To leverage its efforts, the company markets a version of this program. An important potential customer asks the supply manager about futureenhancements to the software. While such updates are in progress, they have not been announced. Given this situation, which of the following is the BEST course of action for the supply manager to take?

Options:

A.

Highlight features of the new version to increase the customer’s interest

B.

Invite the firm’s marketing department to close a deal based on the future release

C.

Confirm the customer has signed a current Non-Disclosure Agreement (NDA)

D.

Coordinate with the marketing department to determine if release details can be shared

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Questions 20

To promote contracts it has established for discounted office supplies, VWX’s supply management department spends significant time and resources creating a consolidated online catalog for use by all divisions. A large portion of these resources are put toward a catalog aggregator tool, which consolidates supplier catalogs into a single format. After several years of use, VWX’s internal customers find the combined catalog hard to search, and say it does not provide enough information on the items they need to purchase. Currently, all of the office supply contractors produce their own online catalogs, which can be tailored to client requirements.

To encourage a greater volume of purchases through discounted contracts, which of the following is the BEST course of action for VWX’s supply manager to take?

Options:

A.

Urge top management to mandate usage of the combined catalog by all personnel

B.

Increase awareness and training for the combined catalog

C.

Work with the internal customers to discuss alternatives and develop a plan

D.

Negotiate for a lower software license cost for the catalog aggregator tool

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Questions 21

A supply management audit finds that sole source purchases have increased significantly due to the inexperience of the sourcing team, and that the waiving of competition is not justified in many cases. This has resulted in increased costs, as well as noncompliance with organizational policies requiring competitive solicitations. Which of the following is the BEST way to rectify this situation?

Options:

A.

Train staff in solicitation policies and practices

B.

Report noncompliance to management in user departments

C.

Improve audit procedures to identify problem areas sooner

D.

Make sole source review a key performance indicator (KPI)

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Questions 22

Which of the following is typically viewed by management as the MOST important benefit of succession planning?

Options:

A.

Identifying possible successors

B.

Developing a strong talent pool for the future

C.

Addressing gaps in current skills or experience

D.

Filling open positions quickly

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Questions 23

Which of the following is an example of an organization mission statement?

Options:

A.

"Enhance our reputation in a demanding and rapidly changing field"

B.

"Offer innovative customer service responsive to our market’s needs"

C.

"Update procedure manuals and reference materials for all divisions"

D.

"Hire, train and retain skilled staff members to represent us"

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Questions 24

A vice president of sourcing is concerned that sourcing managers are not consistently including diverse suppliers in competitive bidding events, even though the organization has a formal supplier diversity program in place. Which of the following is the BEST action for the VP to take to increase inclusion of diverse suppliers?

Options:

A.

Work with a third-party provider to access a network of qualified diverse suppliers

B.

Establish a goal to source a certain percentage of spend from diverse suppliers

C.

Re-communicate the objectives of the supplier diversity program to the sourcing managers

D.

Encourage inclusion of a minimum of one diverse supplier in every sourcing event

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Questions 25

The staff profile at IHG, Inc., a U.S. company, reveals the following:

Age Range20-2930-3940-4950-5960 - over

Male15151520

Female11100

Age Range20-2930-3940-4950-5960 - over

Caucasian10141420

Hispanic41100

African American21100

Due to expanding operations, IHG has decided to conduct a search for a new junior level purchasing professional. In the past, the company advertised positions on its web site, and while this was successful, it did not yield a very diverse applicant pool.

Which of the following should the company do when seeking applications for this new position?

Options:

A.

Advertise the position in the professional purchasing channels, and ensure that the ad states a minority candidate will be selected for the position

B.

Advertise the position through the company website, as this has proven successful in the past, and ensure the criteria are tailored to select the best person for the job

C.

Advertise the position in channels that will encourage female, Hispanic, African American and aged applicants, and ensure the ad states that a minority candidate will be selected for the position

D.

Advertise the position in channels that will encourage female, Hispanic, African American and aged applicants, and ensure the criteria are tailored to select the best person for the job

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Questions 26

A category manager for an electronics firm is tasked with building a strategy for wiring harnesses for the coming year. Which of the following is the BEST course of action for the category manager to take?

Options:

A.

Engage relevant stakeholders in order to craft a plan that includes multiple viewpoints

B.

Engage senior management to determine what they want from the category in question

C.

Ask suppliers to provide sealed bids to determine which one will be the most aggressive in reducing price

D.

Focus on suppliers with which the firm spends the most money

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Questions 27

XYZ, Inc. is in the due diligence phase of an upcoming merger. The team is involved in assessing the cost synergies that can be realized from the merger. Which of the following can be regarded as potential cost synergies?

I.Reduced competition

II.Sharing of marketing channels

III.Increased purchasing power

IV.Elimination of redundancies

Options:

A.

II and III only

B.

I and IV only

C.

I, II, III and IV

D.

III and IV only

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Questions 28

Jones is a highly motivated leader who exceeds all standards for excellence. However, Jones has also been criticized for micro-managing employees, taking over tasks, giving employees little feedback or direction, and cutting comers during busy periods in order to meet production goals. Jones is MOST likely which of the following types of leaders?

Options:

A.

Affiliation-oriented

B.

Achievement-oriented

C.

Personalized power-oriented

D.

Socialized power-oriented

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Questions 29

An organization wishes to implement principles of world-class logistics management. Which of the following is the MOST appropriate type of goal for integrating such activities?

Options:

A.

Divisional

B.

Functional

C.

Management

D.

Strategic

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Questions 30

Two gourmet food companies merge, and the combined entity attains an increase in its market share. The firm is considering an expansion of its product line, but material costs have risen and stock shortages are creating problems which need to be resolved before any expansion takes place. The firm’s supply managers find that no clear definition of responsibilities was outlined during the merger process for several commodity categories. Which of the following did executive management fail to address?

Options:

A.

Competitive trends in the marketplace

B.

Changes in the scope of the business

C.

Internal customer needs

D.

Supply chain configuration

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Questions 31

A supply manager for XYZ Inc. unknowingly sources a defective component, triggering a mass recall of the end product. One of XYZ's competitors has a representative appear on a television program, and the representative states that XYZ knowingly used the defective component, thus endangering the end customer. Based on this information, on what grounds can XYZ seek legal action against this competitor?

Options:

A.

Libel

B.

Disparagement

C.

Estoppel

D.

Slander

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Questions 32

DEF, Inc. does not have a firm control of expenditures, and its global procurement department does not have a strong reputation within the organization. DEF asks the supply manager to centralize the procurement organization, engage stakeholders, and educate the organization on the value of procurement. Which of the following should the supply manager do FIRST to ensure proper engagement and adherence to policies?

Options:

A.

Communicate a global procurement vision

B.

Validate the current procurement structure

C.

Communicate the procurement policy

D.

Create a global communication plan

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Questions 33

JKL Company's procurement staff has a history of inefficient business practices and poor communications with stakeholders, which the firm attributes to ineffective leadership. The firm hires an experienced executive to lead the department. Which of the following should the executive focus on to make the staff accountable, while simultaneously assuring them that the executive is ultimately responsible for the duties being fulfilled?

Options:

A.

Assignment of tasks

B.

Granting of authority

C.

Span of influence

D.

Presence of responsibility

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Questions 34

A new supply manager with little experience in procure-to-pay (P2P) systems is looking to evaluate software options for the company. Which of the following is the BEST course of action for the supply manager to take?

Options:

A.

Review third-party research on current P2P solutions

B.

Recommend the P2P system used at the supply manager’s previous company

C.

Locate a mentor from another company with experience in P2P

D.

Ask questions of senior leadership to better understand their P2P needs

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Questions 35

When evaluating the performance of supply management employees, which of the following types of input will be MOST comprehensive?

Options:

A.

Customer input

B.

Peer input

C.

360 degree input

D.

Stakeholder input

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Questions 36

A supply department is transitioning from a traditional procurement structure to a more strategic sourcing model. This change is expected to provide new opportunities for skilled supply chain professionals. Which of the following would be the BEST approach in preparing for leadership in such an organization?

Options:

A.

Attaining Six Sigma and quality competencies as strategic value enhancers

B.

Transferring to another division to gain organization-wide perspective

C.

Gaining financial competency to better communicate with senior management

D.

Acquiring technological skills to streamline supply management operations

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Questions 37

XYZ Company has expanded its operations into two new countries over the past six months. Due to the cultural differences within the new countries, the firm’s senior manager of procurement believes that qualitative key performance indicators (KPIs) need to be collected along with existing quantitative KPIs in order to accurately measure the success of the firm. XYZ has never used qualitative KPIs in the past. Given this situation, which of the following should the senior manager do before proposing the qualitative KPIs to the executive team?

Options:

A.

Review all of the firm's quantitative KPIs and document any weaknesses that currently exist

B.

Assemble a team including staff from the new countries and commence a review process

C.

Benchmark qualitative KPIs currently used by successful firms in the same industry

D.

Ask the vice president of procurement for advice about developing the KPIs

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Questions 38

The compliance division within EFG, Inc. is reviewing the company's procedures for monitoring and addressing employee fraud. The current system involves employees who suspect fraud reporting their concerns to an internal company email mailbox. Many of the firm’s employees are concerned about the confidentiality of this process. Which of the following would be the BEST course of action for EFG to take in order to reduce this concern?

Options:

A.

Develop a training program that emphasizes the risks caused by employee fraud and the importance of proper reporting

B.

Announce through the intranet the company's commitment to non-retaliation in fraud reporting

C.

Explore opportunities to outsource the reporting function to an independent third party

D.

Change the reporting policy and have employees report concerns directly to their individual managers

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Questions 39

A supply manager is serving on a large-scale project team in another country. To encourage the team’s efforts, an early completion incentive is linked to the project. During an on-site visit, a local government official pulls the supply manager aside and offers to expedite a required approval in return for a $500 "administration" fee paid in cash.

Given this situation, which of the following is the MOST appropriate course of action for the supply manager to take?

Options:

A.

Decline to pay the fee asitisobviously abribe,and report the matter to the appropriate authorities within thecompany

B.

Decline to pay the fee asitisobviously abribe,and report the matter to the local government authorities

C.

Justify the payment of the fee as it is small in relation to the budget of the project, and may help with on-timeor early project delivery

D.

Decline to pay the fee asitisobviously abribe,but take no other action so as not to create disruptions or relationship issuesthat may jeopardize the project

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Questions 40

A supply manager is looking to engage internal stakeholders. The supply manager contacts the digital marketing team to understand what projects they are working on and where procurement can add value. The digital marketing team has not dealt with procurement in the past and does not understand what support supply management can provide. Which of the following is the NEXT step supply management should take?

Options:

A.

Conduct a needs analysis with the digital marketing stakeholders

B.

Send the team procurement studies to demonstrate their knowledge of the field

C.

Establish rules and guidelines for departments not previously engaged

D.

Schedule time with the team's leadership to discuss engagement

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Questions 41

A supply manager is invited to present at a conference hosted by a professional organization. The conference is focused on supplier relationship management, risk and business intelligence. The supply manager intends to discuss how suppliers are classified using a mix of spend data, supplier audit results, supplier performance scorecards and contract status. In this situation, which of the following should be the supply manager's GREATEST priority when making this presentation?

Options:

A.

Practicing the presentation aloud to ensure clarity and professional delivery

B.

Ensuring that confidentiality is maintained by keeping the data anonymous

C.

Verifying that the presentation follows the standard format used in conferences

D.

Reviewing the presentation with a copy editor to guarantee professional decorum

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Exam Code: LEAD
Exam Name: Leadership and Transformation in Supply Management
Last Update: Dec 4, 2024
Questions: 165

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