CTSC Practice Test Questions

150 Questions


One major performance outcome of a digital supply chain transformation is:


A. fewer trade-offs between costs and customer satisfaction.


B. greater employee retention rate and job satisfaction.


C. higher net promoter score and lower cost of customer acquisition.


D. lower selling, general, and administrative (SG&A) expenses of the business.





A.
  fewer trade-offs between costs and customer satisfaction.

Explanation: According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, one major performance outcome of a digital supply chain transformation is fewer trade-offs between costs and customer satisfaction1.A digital supply chain transformation is the use of digital technology and digital content to improve supply chain performance2.It enables a flexible matrix of supply chain partners, instead of one upstream and one downstream echelon2.It also enhances information sharing, visibility, decision making, and responsiveness2.By leveraging digital capabilities, a supply chain can achieve higher levels of efficiency, agility, and innovation, while meeting or exceeding customer expectations1.This reduces the need to compromise on either costs or customer satisfaction, and creates a competitive advantage for the supply chain1.

When sharing performance metrics with customers, management needs to:


A. avoid too many metrics in the report.


B. consider any discrepancies within the survey feedback.


C. provide a balanced and comprehensive set of metrics.


D. ensure metrics are linked to business strategy.





C.
  provide a balanced and comprehensive set of metrics.

Explanation: According to the CTSC exam content manual1, when sharing performance metrics with customers, management needs to provide a balanced and comprehensive set of metrics, which means that the metrics should cover all aspects of the customer value proposition, such as quality, cost, delivery, flexibility, and innovation. The metrics should also be aligned with the customer’s expectations and objectives, and reflect the customer’s perspective and feedback. Providing a balanced and comprehensive set of metrics can help to build trust, transparency, and collaboration with customers, as well as to identify areas of improvement and opportunity.

When improving its connected customer capability, a company will likely enhance:


A. awareness.


B. sustainability.


C. agility.


D. profitability.





A.
  awareness.

Explanation: According to the ASCM, the Connected Customer Capability allows companies to augment traditional transactional interactions to achieve effective and integrated customer engagement throughout the customer, product and service life cycles, from acquisition to service1.One of the benefits of this capability is to increase the awareness of the customers about the company’s products, services, and value proposition, as well as to generate more leads and referrals1.Awareness is the first stage of the customer journey, where the customer becomes aware of the company and its offerings, and decides whether to engage with the company or not1.By improving the connected customer capability, a company can use various channels and technologies to reach out to potential customers, provide relevant and personalized information, and create a positive impression that attracts and retains customers1. Therefore, awareness is the most likely outcome of enhancing the connected customer capability.

What type of risk considers the possibility of a failure of inbound materials that renders a provider unable to meet customer demand within anticipated costs, within a stated time frame, or in a way that does not cause threats to customer safety?


A. Supply risk


B. Demand risk


C. Operational risk


D. Price risk





A.
  Supply risk

Explanation: Supply risk is the risk of not being able to source the required raw materials, components, or services from suppliers to meet customer demand1.It can be caused by various factors, such as supplier failure, quality issues, natural disasters, geopolitical events, or market fluctuations1.Supply risk can affect the cost, quality, and delivery performance of a supply chain1.

Which of the following terms is used in the SCOR model to prioritize metrics and estimate target performance level?


A. Value-added


B. Above par


C. Superior


D. Optimized





D.
  Optimized

Explanation: According to the ASCM SCOR Digital Standard, the SCOR model uses the term optimized to indicate the highest level of performance for a given metric. Optimized metrics are those that are prioritized by the organization and have a target performance level that is based on the best-in-class benchmark or the desired competitive advantage. The SCOR model defines six levels of performance for each metric: inferior, poor, nominal, competitive, advantage, and optimized (p.17)1. The other options are not used in the SCOR model to prioritize metrics and estimate target performance level.

Sharing the visibility on change management progress by team can help the enterprise to:


A. measure transformation outcomes in meeting strategy.


B. demonstrate the transformation milestones.


C. allocate resources to the most in need of support.


D. ensure an effective metrics program in practice.





C.
  allocate resources to the most in need of support.

Explanation: According to the CTSC Exam Content Manual, one of the benefits of sharing the visibility on change management progress by team is to allocate resources to the most in need of support1. Sharing the visibility on change management progress by team can help the enterprise to identify the teams that are lagging behind, facing challenges, or requiring assistance in the transformation process, and provide them with the necessary resources, guidance, or coaching to overcome the barriers and achieve the desired outcomes1. The other options are not the main benefits of sharing the visibility on change management progress by team, as they are more related to other aspects of the transformation process. Measuring transformation outcomes in meeting strategy is a benefit of establishing a metrics program that tracks and evaluates the performance and impact of the transformation initiatives2. Demonstrating the transformation milestones is a benefit of creating a communication plan that informs and engages the stakeholders and showcases the achievements and successes of the transformation efforts3. Ensuring an effective metrics program in practice is a benefit of aligning the metrics with the strategic objectives, collecting and analyzing the relevant data, and reporting and acting on the results2.

Which of the following steps should be completed before determining training needs?


A. Develop action plan.


B. Assess performance management.


C. Develop training plan.


D. Assess key performance indicators (KPIs).





D.
  Assess key performance indicators (KPIs).

Explanation: According to the CTSC Exam Content Manual, one of the steps that should be completed before determining training needs is to assess key performance indicators (KPIs)1.KPIs are the metrics that measure the performance and progress of the supply chain transformation objectives and outcomes1.Assessing KPIs can help to identify the gaps and opportunities for improvement in the supply chain processes, functions, and roles, and to determine the training needs and priorities for the workforce2. The other options are not the steps that should be completed before determining training needs, as they are more related to the implementation and evaluation of the training plan. Developing an action plan is a step that follows the determination of training needs, as it outlines the specific actions, resources, and timelines for delivering the training3. Developing a training plan is a step that involves designing the training content, methods, and materials based on the training needs and objectives. Assessing performance management is a step that involves monitoring and reviewing the performance of the trainees and the training program, and providing feedback and recognition.

Which of the following options is the most appropriate step in establishing performance targets?


A. Use internal best-in-class divisions' metrics as baseline key performance indicators (KPIs) for similar functions in the company.


B. Communicate the index of best-in-class companies in a monthly newsletter to internal employees.


C. Conduct a survey with all functional team managers and get consensus to the metrics in the scorecard.


D. Ensure the data being used in the metric calculations are accurate and have been collected recently.





D.
  Ensure the data being used in the metric calculations are accurate and have been collected recently.

Which of the following options is the proper action to define prerequisites for a supply chain transformation roadmap?


A. Standardize and harmonize processes across the enterprise.


B. Perform a detailed review to understand the forecast error.


C. Use tiered metrics to understand cause and effect.


D. Create progress visibility to all teams throughout the enterprise.





A.
  Standardize and harmonize processes across the enterprise.

Explanation: According to the ASCM CTSC Exam Content Manual, one of the prerequisites for a supply chain transformation roadmap is to standardize and harmonize processes across the enterprise1. This can help to eliminate waste, reduce complexity, improve efficiency, and enable scalability of the supply chain opera-tions2. The other options are not prerequisites, but rather outcomes or enablers of a supply chain transformation roadmap.1: ASCM CTSC Exam Content Manual, page 10.2:1

In a gap analysis, one of the most frequently used approaches in measuring operating income is:


A. the Lost Opportunity.


B. the Profitability Increase.


C. the Order to Shipment Time.


D. the Won Opportunity.





B.
  the Profitability Increase.

Explanation: According to the ASCM CTSC Exam Content Manual, one of the most frequently used approaches in measuring operating income in a gap analysis is the profitability increase.The profitability increase is defined as "the difference between the current operating income and the potential operating income that could be achieved by implementing the best practices identified in the gap analysis"1. The profitability increase reflects the potential improvement in the organization’s financial performance by closing the gaps in its supply chain processes.The profitability increase can be calculated by multiplying the gap percentage by the current operating income1.

Which of the following infrastructure elements of the supply chain information system have a significant impact on supply chain transformation?


A. Data warehouse, software, the internet, and finances


B. Hardware, software, custom coding, and finances


C. Hardware, software, data warehouse, and the internet


D. Data warehouse, hardware, custom coding, and the internet





C.
  Hardware, software, data warehouse, and the internet

Explanation: According to the ASCM, the supply chain information system infrastructure consists of four main elements: hardware, software, data warehouse, and the internet1.These elements enable the collection, storage, processing, and transmission of data and information across the supply chain, and support the decision making and execution of supply chain activities1.The ASCM also states that the supply chain information system infrastructure is a key enabler of supply chain transformation, which is the process of changing the supply chain to achieve higher performance, efficiency, and sustainability1.By having a robust and reliable infrastructure, a company can leverage the power of data and analytics, improve the visibility and collaboration across the supply chain, and adopt new technologies and innovations that can enhance the supply chain capabilities and outcomes1. Therefore, hardware, software, data warehouse, and the internet are the infrastructure elements that have a significant impact on supply chain transformation.

When tasked with developing a transformational supply chain strategy, it is important to start with:


A. determining the customers' current and future needs.


B. identifying and documenting external megatrends.


C. scanning and assessing the competitor landscape.


D. prioritizing actions and assessing their effectiveness.





A.
  determining the customers' current and future needs.

Explanation: According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to “determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition” (p. 16) 1. This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers’ needs.


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