ISM Exam LEAD Topic 1 Question 11 Discussion

Actual exam question for ISM's Leadership and Transformation in Supply Management exam

Question #: 11
Topic #: 1

[All Leadership and Transformation in Supply Management Questions]

A supply manager for a manufacturing firm is part of a cross-functional team focusing on critical parts. A major supplier of these parts has an excellent record for quality, competitive pricing, and a good relationship with the firm. However, this supplier often requires frequent follow-up and expedited shipping, typically at added cost. The team is reluctant to consider other sources, and believes the firm's needs are being met by the current supplier. In response, the supply manager assembles data on the supplier's performance and describes the potential risks of shortages and delays. After further discussion, the team agrees to investigate alternate sources, and eventually identifies two other suppliers offering comparable pricing and quality, with better reputations for timely delivery.

Which of the following BEST describes how the supply manager helped the team produce a successful outcome?

AValue stream mapping

BInternal negotiations

CStakeholder engagement

DBusiness planning process

Show Suggested Answer

Suggested Answer: C

Scenario Overview: The supply manager is part of a cross-functional team managing critical parts. Despite the supplier's strong record in quality and pricing, frequent follow-ups and expedited shipping are issues. The supply manager assembles data and discusses risks, leading the team to explore alternative suppliers.

Stakeholder Engagement Definition: This involves effectively communicating with and involving stakeholders in decision-making processes to ensure their needs and concerns are addressed, leading to better decisions and outcomes.

Application in Scenario: The supply manager engaged stakeholders (the team) by presenting data on supplier performance and highlighting potential risks. This facilitated informed discussions and helped align the team's perspective towards considering alternative suppliers.

Outcome: Through stakeholder engagement, the team identified alternative suppliers with comparable pricing and quality but better delivery reliability, achieving a successful outcome.

Reference: Stakeholder engagement is a key principle in project management and strategic sourcing, as outlined in the Project Management Institute's (PMI) PMBOK Guide and supply chain management literature such as 'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra and Peter Meindl.

by Valentine at Sep 17, 2024, 07:47 AM

Limited Time Offer

25%

Off

Get Premium LEAD Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Aron

2 days ago

In the end, they found two other suppliers with better reputations for timely delivery. So, the supply manager's actions led to a successful outcome.

upvoted 0 times

...

Eric

3 days ago

Yeah, that data showed the potential risks of shortages and delays, which made the team consider other sources.

upvoted 0 times

...

Twanna

5 days ago

Ha! I bet the team's 'reluctance to consider other sources' was really just fear of change. Good thing the supply manager had the guts to shake things up. Bet that supplier was sweating a bit when they heard about the investigation!

upvoted 0 times

...

Loren

16 days ago

Hmm, I'm not sure I would have gone with 'stakeholder engagement' as the best answer. Seems more like the supply manager was proactively managing the team's concerns and driving the business planning process.

upvoted 0 times

Lashawn

4 days ago

I think the supply manager really helped by gathering data on the supplier's performance.

upvoted 0 times

...

Johana

20 days ago

I agree, the supply manager's ability to gather and present relevant performance data was key in convincing the team to explore alternatives. Addressing potential risks upfront was also a smart move.

upvoted 0 times

...

Alberta

23 days ago

I think the supply manager really helped the team by assembling data on the supplier's performance.

upvoted 0 times

...

Alverta

26 days ago

The supply manager's data-driven approach and willingness to explore alternate suppliers seems like a solid strategy. Considering the current supplier's performance issues, I think investigating other options was the right call.

upvoted 0 times

Whitley

17 days ago

Team member: We should investigate other suppliers with better reputations for timely delivery.

upvoted 0 times

...

Nan

21 days ago

Supply manager: I gathered data on the supplier's performance and risks of shortages.

upvoted 0 times

...