Certified Supply Chain Professional (CSCP) Practice Exam

Which role does the customer typically keep in a traditional supplier relationship?

1. Initiator of all inventory orders

2. Warehouse manager for shipping operations

3. Supplier provides storage space

4. Supplier manages vendor relations

The correct answer is: Initiator of all inventory orders

In a traditional supplier relationship, the customer typically assumes the role of initiating orders to replenish their inventory as needed. This position is significant because it reflects a common dynamic where customers actively manage their inventory levels based on demand forecasts, sales trends, and overall business needs. The customer assesses their inventory and places orders with the supplier to ensure they have adequate stock to meet consumer demand without overstocking, which can lead to increased holding costs. This ordering process establishes the customer as a proactive participant in the supply chain, directly influencing the flow of goods and inventory levels. While other roles such as warehouse management, storage provisions, and vendor relations are important elements of the supply chain, those functions are generally more aligned with the responsibilities of the supplier or other supply chain partner rather than the customer in a conventional framework. By focusing on initializing orders, the customer maintains control over their inventory strategy, ensuring they can respond effectively to market demands.