Free Leadership and Transformation in Supply Management Exam LEAD Exam Practice Test

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?

• Review third-party research on current P2P solutions
• Recommend the P2P system used at the supply manager’s previous company
• Locate a mentor from another company with experience in P2P
• Ask questions of senior leadership to better understand their P2P needs

A supply chain's stability, as well as its ability to continue business or recover from a major disruption, is BEST predicted by

• the amount a primary supplier purchases from sub-tier suppliers
• the location of a primary supplier in relation to its sub-tier suppliers
• the financial strength of primary suppliers
• how a primary supplier manages its sub-tier suppliers

A manufacturing company tasks supply management with implementing a risk management program for its enterprise resource planning (ERP) system, which impacts several departments. In this situation, which of the following is the FIRST step supply management should take?

• Assess the impact of ERP’s risks on company goals
• Determine benchmarks for the ERP program's success
• Identify the sources of the ERP system's risk
• Compare the ERP system's risk to others in the marketplace

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?

• Exploring outside professional development opportunities
• Concentrating on training in new technologies
• Providing mentors to assist with orientation
• Employing functional rotation with related departments

A company sales director reports that profits have been declining for mature but successful product offerings. The CEO asks for recommendations to address this issue. The firm's supply manager and sales director have had a strained working relationship in the past, but the supply manager believes supply management could make valuable contributions toward improving profitability. Given this situation, which of the following should be the supply manager's FIRST course of action?

• Meet with board members to discuss a results-driven strategy to the problem
• Develop a new policy to correct the problem
• Offer to work with the sales director to identify possible joint solutions
• Talk with the CEO about supply management's role

In order to ensure that employee performance measures are aligned with the overall business model and the strategic direction of the organization, the supply management department's goals and objectives should be

• established at the start of each calendar year
• approved by the chief financial officer
• treated as confidential information
• developed at the senior executive level

Using an outsourced freight firm's transportation services rather than delivering products to customers directly is an example of which of the following risk management strategies?

• Avoidance
• Mitigation
• Assumption
• Transference

Members of a cross-functional team have each had a chance to present their ideas. Afterwards, the members discuss these ideas in detail, on occasion arguing and testing one another. After this process is complete, the team can move on to which phase of team formation?

• Forming
• Norming
• Storming
• Performing

A supply manager attends a professional association conference and meets with several supply management colleagues working in related industries. The discussion turns to specific suppliers they have in common, including prices and negotiation experiences. Which of the following is the MOST important reason the supply manager should refrain from this discussion?

• Giving away negotiation tactics could adversely affect the organization.
• Corporate ethics policies could be compromised.
• Topics may violate anti-trust laws or be considered restraint of trade.
• Revealing supplier information might damage relationships.

A manufacturing company wants to do a better job of tracking prices and evaluating trends. It wishes to employ an index within contracts to determine yearly increases or decreases. In this situation, thecompany would be BEST served by consulting which of the following?

• CAPS research
• Automotive News
• Bureau of Labor Statistics
• Chicago's Business Barometer