Certified Supply Chain Professional (CSCP) Practice Exam

What are the three V's in supply chain management?

1. Visibility, velocity, and variety

2. Value, verification, and volume

3. Vigor, versatility, and viability

4. Virtualization, variability, and vision

The correct answer is: Visibility, velocity, and variety

In supply chain management, the three V's refer to visibility, velocity, and variety. Visibility is crucial as it ensures all participants in the supply chain have access to the same information in real time. This transparency allows for better coordination among different parts of the supply chain, as stakeholders can see where goods are at any point in time, identify potential disruptions, and respond accordingly to maintain efficiency. Velocity pertains to the speed at which products move through the supply chain. In today's fast-paced market, being able to deliver goods to customers quickly is a key competitive advantage. Faster velocity means quicker response times to market demands and, ultimately, higher customer satisfaction. Variety reflects the range of products and options available to customers as well as the need for supply chains to manage a diverse inventory. In a global market, the ability to offer an extensive mix of products is vital to meet customer preferences and compete effectively. Together, these three V's highlight the critical factors that drive effective supply chain management and operational excellence. The other choices include terms that are relevant in various contexts but do not encapsulate the primary focus of supply chain management as effectively as visibility, velocity, and variety do.