Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is a key component of measuring compliance?

1. Creating new contract terms.

2. Identifying purchases to uncover lost savings opportunities.

3. Ignoring previously negotiated agreements.

4. Focusing solely on supplier relationships.

The correct answer is: Identifying purchases to uncover lost savings opportunities.

Measuring compliance effectively involves assessing how well an organization adheres to established policies, regulations, and agreements with stakeholders, particularly suppliers. Identifying purchases to uncover lost savings opportunities is crucial because it helps organizations analyze spending patterns and determine if they are getting the best value for their procurements. By reviewing historical purchase data and existing contracts, organizations can identify discrepancies between what was intended in the agreement and what is actually being achieved. This not only aids in ensuring that compliance standards are met but also enhances financial performance by recognizing areas where cost savings can be realized. The other options do not align with the core components of compliance measurement. Creating new contract terms may involve changes, but does not directly assess existing compliance with prior agreements. Ignoring previously negotiated agreements would directly conflict with compliance measurement, as it relies on understanding and adhering to those agreements. Focusing solely on supplier relationships overlooks the broader view required for compliance, which includes ensuring that all transactional aspects meet regulatory and organizational standards.