Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is included in web-enabled SRM?

1. Competitive bidding

2. Supplier audits

3. SRM analytics

4. Inventory liquidation

The correct answer is: SRM analytics

Web-enabled Supplier Relationship Management (SRM) systems are designed to facilitate and enhance relationships between organizations and their suppliers through technology. One of the key components of web-enabled SRM is analytics, which plays a vital role in enabling organizations to engage in data-driven decision-making. SRM analytics allows companies to track supplier performance metrics, assess risks, generate insights from supplier data, and identify opportunities for improvement. By leveraging this analytical capability, organizations can optimize supplier collaboration and drive strategic sourcing initiatives. Key benefits include the ability to forecast demand, monitor compliance, and evaluate the effectiveness of supplier partnerships. In contrast, competitive bidding, supplier audits, and inventory liquidation, while relevant to supplier management, do not specifically epitomize the web-enabled aspect of SRM in the context of utilizing digital tools for data analysis and insight generation. Competitive bidding relates to procurement processes, supplier audits focus on compliance and performance scrutiny, and inventory liquidation deals with the management of surplus stock, none of which fundamentally encompass the analytical capabilities central to web-enabled SRM.