Certified Supply Chain Professional (CSCP) Practice Exam

What does compliance management primarily focus on?

1. Auditing supplier relationships only.

2. Implementing penalties for non-compliance.

3. Defining and applying strategies to concentrate purchases with suppliers.

4. Simplifying purchasing processes without performance metrics.

The correct answer is: Defining and applying strategies to concentrate purchases with suppliers.

Compliance management primarily focuses on defining and applying strategies that ensure organizations adhere to regulations and standards within supply chain operations. This includes establishing guidelines to ensure consistent purchasing practices and supplier relationships that meet compliance requirements. By concentrating purchases with suppliers, compliance management can help organizations mitigate risks related to supplier reliability and performance, ultimately leading to better compliance with regulatory frameworks. Concentration of purchases with selected suppliers allows organizations not only to negotiate better terms and strengthen supplier relationships but also to foster compliance with legal and quality standards set by various authorities. Ensuring that suppliers meet compliance requirements aligns purchasing strategies with the overarching goals of risk management and quality assurance. In contrast, focusing solely on auditing supplier relationships does not encapsulate the broader goals of compliance management, which go beyond mere review to include preventive strategies. Implementing penalties for non-compliance, while important, is more of a reactive measure and does not form the core focus of compliance management. Likewise, simplifying purchasing processes without performance metrics can undermine compliance efforts as it may overlook important standards and requirements that must be met to ensure compliance.