Certified Supply Chain Professional (CSCP) Practice Exam

Which statement best describes strategic sourcing?

1. It focuses primarily on immediate cost savings

2. It seeks partnerships to improve long-term supplier relationships

3. It emphasizes short-term contracts with suppliers

4. It disregards total cost assessments

The correct answer is: It seeks partnerships to improve long-term supplier relationships

Strategic sourcing is an approach that goes beyond simple procurement; it emphasizes forming long-term partnerships with suppliers to foster collaboration and innovation. This relationship-building effort is aimed at not just fulfilling immediate needs, but also enhancing overall supply chain performance over time. By focusing on partnerships, organizations can leverage each other's strengths, share insights, and work collaboratively to improve processes, quality, and potentially even pricing. Through these strategic relationships, companies can gain a competitive advantage, access new technologies, and respond more effectively to market changes. This focus on long-term interactions contrasts with approaches that prioritize immediate cost reduction, suggesting that while cost is an important factor, strategic sourcing integrates multiple factors, including risk management, supplier capabilities, and alignment with overall business goals. Therefore, the emphasis on fostering long-term supplier relationships is a core aspect of strategic sourcing.