Certification in Supplier Diversity Practice Exam

What defines a strategic supply plan?

1. A detailed assessment of supplier qualifications

2. Establishing a supply architecture based on strategic plans

3. A schedule of events for supplier negotiations

4. A yearly budget for supply purchases

The correct answer is: Establishing a supply architecture based on strategic plans

A strategic supply plan is primarily defined by its role in aligning the supply chain's operations with the broader strategic goals of an organization. Establishing a supply architecture—this refers to the framework and processes that support the sourcing and procurement of goods and services—ensures that the supply chain effectively contributes to achieving the organization’s objectives. This involves evaluating the market, understanding demand forecasts, determining the best sourcing strategies, and imposing a structure that can adapt to the organization's evolving needs. While a detailed assessment of supplier qualifications, a schedule for supplier negotiations, and a yearly budget for supplies are important aspects of supplier management and procurement, they represent components of the overall supply planning process rather than defining it. The strategic supply plan focuses on how all these elements come together to support the larger vision and strategy of the organization, positioning it as a key driver of competitive advantage.