Certified Supply Chain Professional (CSCP) Practice Exam

What is the first step in the supply planning process?

1. Gathering feedback from customers

2. Corporate strategy has an input

3. Creating a budget for supplies

4. Analyzing market trends

The correct answer is: Corporate strategy has an input

The first step in the supply planning process is to ensure that the corporate strategy serves as a foundational input. This is crucial because the corporate strategy outlines the overall goals and objectives of the organization, guiding all subsequent planning and decision-making processes. It provides a framework within which the supply planning must align, ensuring that the supply chain supports the company’s mission and strategic objectives. By starting with the corporate strategy, supply planners can make informed decisions that align with broader business goals, such as market expansion, operational efficiency, or customer satisfaction. This alignment is essential for creating a responsive and effective supply chain that can adapt to changes in market conditions, customer needs, and other external factors. While gathering feedback from customers, creating a budget for supplies, and analyzing market trends are important components of the supply planning process, they are secondary to establishing the guiding principles set forth by the corporate strategy. These activities typically follow the grounding provided by the strategic framework.