CHPTER 2: SRM & CRM

Which of the following best describes the concept of Supplier Relationship Management (SRM)?

• A system for monitoring only the cost of materials purchased from suppliers.

• A strategic approach to managing interactions with suppliers to maximize value and achieve mutual benefits.

• A process of replacing suppliers regularly to ensure competition and lower prices.

• A method used only to evaluate supplier performance after contracts are signed.

Which of the following is NOT an objective of Supplier Relationship Management (SRM)

• Ignoring supplier performance to reduce administrative workload

• Improving communication and collaboration across the supply chain

• Building trust and long-term partnerships with suppliers

• Reducing risks and ensuring reliable supply of materials

Which of the following is considered a key factor for developing a successful partnership between suppliers and customers?

• Lack of transparency in sharing information

• Mutual trust and open communication

• Frequent switching of suppliers to increase competition

• One-sided decision-making by the buyer

Which of the following best defines Supplier Development?

• Replacing underperforming suppliers with new ones immediately.

• A process of improving supplier capabilities through collaboration and support.

• A method of reducing the number of suppliers to lower costs.

• A one-time evaluation of supplier performance.

Which of the following is a main goal of Supplier Development?

• To create short-term contracts with suppliers

• To reduce supplier involvement in product innovation

• To enhance supplier performance and strengthen long-term relationships

• To limit communication between buyer and supplier

Which of the following best describes the concept of Customer Relationship Management (CRM)?

• A process of tracking only customer complaints to improve product quality.

• A strategy to manage a company’s interactions with current and potential customers to build long-term relationships.

• A method used only to record customer purchases for accounting purposes.

• A short-term approach to increase sales without focusing on customer loyalty.

Which of the following is a key aspect of Customer Relationship Management (CRM)?

• Building strong, long-term customer relationships through trust and satisfaction

• Reducing communication with customers to save time

• Treating every customer interaction as a separate, one-time transaction

• Ignoring customer feedback to avoid operational changes

What is a key role of Customer Relationship Management (CRM) in Supply Chain Management?

• To minimize collaboration with customers to reduce costs

• To enhance customer satisfaction and improve demand forecasting

• To focus only on internal operations without considering customer needs

• To eliminate the need for suppliers in the supply chain

Which of the following is a core component of Customer Relationship Management (CRM)?

• Customer identification, customer acquisition, customer retention, and customer development

• Reducing supplier base and monitoring supplier performance only

• Tracking only financial transactions of customers

• Focusing solely on short-term sales promotions

Which of the following is MOST important for implementing a successful Customer Relationship Management (CRM) system?

• Avoiding customer feedback to reduce complaints

• Ensuring strong top management support and clear customer-focused objectives

• Using technology without employee training

• Focusing only on short-term promotions