CPSM EXAM 1 – SOURCING 2025
QUESTIONS AND ANSWERS
A supply manager is assigned the responsibility to define a sourcing strategy for an organization
whose products are highly complex and demand a high level of quality. Production downtime
can result in the organization paying customers for late or missed deliveries. When developing
the sourcing strategy, which is the MOST important item to start with:
A. Investigating existing versus new sources
B. Determining the availability of the market's high quality potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders - ANS D - Is correct because stakeholders have the most
vested interest in any sourcing strategy. They define actual needs that need to be sourced.
The central sourcing manager in a multi-site organization is reviewing requirements for a new
telephone system with the operations manager at one of the sites. The operations manager has
an established budget and has selected a system. However, the purchase falls outside of the
site's purchasing authority, so the approval of the central sourcing manager is required. Which
of the following steps should the central sourcing manager take next?
A. Make the specifications generic and send invitations to bid to multiple suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the organization's strategy
D. Check with external stakeholders to determine if the new telephone system is required. -
1
ANS C - When developing sourcing plans, the budget, operations requirements, and strategic
Page
objectives must be considered.
@COPYRIGHT SIRJOEL 2025/2026
, VWX, INC. is a large food manufacturer. As part of a social responsibility initiative, VWX decides
to phase out the purchase of a sugar substitute within three years. After this initiative is
announced, VWX's marketing department identifies a potential market for low calorie snacks.
The marketing department decides to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply management to execute the sourcing
strategy, the supply manager realizes that the specifications call for a sugar substitute. Which of
the following is MOST likely the cause of this conflict?
A. The marketing department's decision is inconsistent with the company's strategic goal.
B. Not all internal stakeholders were properly engaged in the development of the
specifications.
C. The marketing department failed to consider the external stakeholders needs during the
development of the specifica - ANS A. Sourcing strategies are executed based on
organizational goals.
A Supply manager is preparing for negotiations with a business consulting supplier. The supplier
provides services to Information Technology and corporate headquarters, and has frequent
interactions with a number of people across the company, including executive staff. Which of
the following is the BEST course of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the upcoming negotiations and what
they should say, and send a follow-up email to all attendees plus those who could not attend.
B. Send an email to all employees, letting them know that negotiations are being conducted
with this supplier, and that no one should have any interaction with the supplier while
negotiations continue.
C. Contact the head of each department and explain that negotiations will be conducted with
the supplier, and ask the department heads to share the information with their teams.
D. St - ANS A - Allows for the supply manager to share the purpose behind the negotiation
and obtain business buy-in.
BCD Fashion Inc. is preparing to launch a new product line consisting of high-profile fashion
items. The firm has conducted extensive market research, and a rapidly growing demand for
2
Page
@COPYRIGHT SIRJOEL 2025/2026
, these items has been identified. BCD's supply management department has developed a
sourcing plan based on input from design, marketing, and senior management.
In preparation for launch, the supply management department ensures that BCD's suppliers are
adequately equipped to handle the quickly shifting demand. However, when the product line
launches, deliveries to retail locations experience delay. BCD's supply manager discovers that
the firm's main logistics provider was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu - ANS B - All internal stakeholders were engaged and market research was
adequately conducted; however, one key external stakeholder (trucking companies) was not
engaged about the launch of the new product line.
The chief procurement officer (CPO) for a manufacturing company is informed by the CEO that
the procurement team is not adding value or helping the firm meet strategic goals. The CPO is
committed to delivering value for the organization. Given this situation, which of the following
is the FIRST step the CPO should take in ensuring the success of the procurement team?
A. Replace existing staff with individuals that hold professional designations
B. Review the current purchasing and supplier management policy
C. Meet with key business stakeholders to understand their priorities
D. Interview current team members and ask for ideas to improve interaction. - ANS C - In
order for the purchasing function to deliver value and meet the strategic objections of the
organization, the new CPO must first meet with key stakeholders to understand their key
priorities for the coming year.
Which of the following BEST describes a stakeholder?
3
Page
A. An internal person who is most affected by a particular decision-making process
@COPYRIGHT SIRJOEL 2025/2026
QUESTIONS AND ANSWERS
A supply manager is assigned the responsibility to define a sourcing strategy for an organization
whose products are highly complex and demand a high level of quality. Production downtime
can result in the organization paying customers for late or missed deliveries. When developing
the sourcing strategy, which is the MOST important item to start with:
A. Investigating existing versus new sources
B. Determining the availability of the market's high quality potential suppliers
C. Investigating alternative and backup supplier requirements
D. Identifying key stakeholders - ANS D - Is correct because stakeholders have the most
vested interest in any sourcing strategy. They define actual needs that need to be sourced.
The central sourcing manager in a multi-site organization is reviewing requirements for a new
telephone system with the operations manager at one of the sites. The operations manager has
an established budget and has selected a system. However, the purchase falls outside of the
site's purchasing authority, so the approval of the central sourcing manager is required. Which
of the following steps should the central sourcing manager take next?
A. Make the specifications generic and send invitations to bid to multiple suppliers
B. Send invitations to bid to suppliers of the desired system
C. Verify that the site manager's needs are consistent with the organization's strategy
D. Check with external stakeholders to determine if the new telephone system is required. -
1
ANS C - When developing sourcing plans, the budget, operations requirements, and strategic
Page
objectives must be considered.
@COPYRIGHT SIRJOEL 2025/2026
, VWX, INC. is a large food manufacturer. As part of a social responsibility initiative, VWX decides
to phase out the purchase of a sugar substitute within three years. After this initiative is
announced, VWX's marketing department identifies a potential market for low calorie snacks.
The marketing department decides to pilot a small batch production of these snacks. When the
specifications for the new product are sent to supply management to execute the sourcing
strategy, the supply manager realizes that the specifications call for a sugar substitute. Which of
the following is MOST likely the cause of this conflict?
A. The marketing department's decision is inconsistent with the company's strategic goal.
B. Not all internal stakeholders were properly engaged in the development of the
specifications.
C. The marketing department failed to consider the external stakeholders needs during the
development of the specifica - ANS A. Sourcing strategies are executed based on
organizational goals.
A Supply manager is preparing for negotiations with a business consulting supplier. The supplier
provides services to Information Technology and corporate headquarters, and has frequent
interactions with a number of people across the company, including executive staff. Which of
the following is the BEST course of action for the supply manager to take?
A. Set up meeting with all the key stakeholders to discuss the upcoming negotiations and what
they should say, and send a follow-up email to all attendees plus those who could not attend.
B. Send an email to all employees, letting them know that negotiations are being conducted
with this supplier, and that no one should have any interaction with the supplier while
negotiations continue.
C. Contact the head of each department and explain that negotiations will be conducted with
the supplier, and ask the department heads to share the information with their teams.
D. St - ANS A - Allows for the supply manager to share the purpose behind the negotiation
and obtain business buy-in.
BCD Fashion Inc. is preparing to launch a new product line consisting of high-profile fashion
items. The firm has conducted extensive market research, and a rapidly growing demand for
2
Page
@COPYRIGHT SIRJOEL 2025/2026
, these items has been identified. BCD's supply management department has developed a
sourcing plan based on input from design, marketing, and senior management.
In preparation for launch, the supply management department ensures that BCD's suppliers are
adequately equipped to handle the quickly shifting demand. However, when the product line
launches, deliveries to retail locations experience delay. BCD's supply manager discovers that
the firm's main logistics provider was not expecting an influx in shipment quantity. Which of the
following is MOST likely the cause of the problem?
A. Internal stakeholders were not fully engaged.
B. External stakeholders were not fully engaged.
C. There was insufficient market data.
D. There was insu - ANS B - All internal stakeholders were engaged and market research was
adequately conducted; however, one key external stakeholder (trucking companies) was not
engaged about the launch of the new product line.
The chief procurement officer (CPO) for a manufacturing company is informed by the CEO that
the procurement team is not adding value or helping the firm meet strategic goals. The CPO is
committed to delivering value for the organization. Given this situation, which of the following
is the FIRST step the CPO should take in ensuring the success of the procurement team?
A. Replace existing staff with individuals that hold professional designations
B. Review the current purchasing and supplier management policy
C. Meet with key business stakeholders to understand their priorities
D. Interview current team members and ask for ideas to improve interaction. - ANS C - In
order for the purchasing function to deliver value and meet the strategic objections of the
organization, the new CPO must first meet with key stakeholders to understand their key
priorities for the coming year.
Which of the following BEST describes a stakeholder?
3
Page
A. An internal person who is most affected by a particular decision-making process
@COPYRIGHT SIRJOEL 2025/2026
