Supply Chain Professional Changed CSCP Questions

The correct answer is C. Understanding the content and scope of a company’s cloud implementation is essential to a company’s advanced supply chain strategy that utilizes cloud computing. Cloud computing is the delivery of computing services, such as servers, storage, databases, networking, software, analytics, and intelligence, over the internet1. Cloud computing can provide various benefits for supply chain management, such as cost reduction, speed, agility, scale, visibility, and innovation23. However, to leverage these benefits, a company needs to understand the content and scope of its cloud implementation, which includes the following aspects4:

The type of cloud service model that suits the company’s needs and goals, such as software-as-a-service (SaaS), platform-as-a-service (PaaS), or infrastructure-as-a-service (IaaS).

The type of cloud deployment model that matches the company’s security and performance requirements, such as public cloud, private cloud, or hybrid cloud.

The type of cloud provider that offers the best features, functionality, and compatibility for the company’s supply chain applications and processes, such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, or IBM Cloud.

The type of cloud migration strategy that minimizes the risks and challenges of moving the company’s supply chain data and systems to the cloud, such as lift-and-shift, re-platform, re-factor, or re-architect.

The other options are not as essential or relevant as the correct answer. Understanding the history and evolution of supply chain technologies is not necessary for a company’s advanced supply chain strategy that utilizes cloud computing. While it may provide some background and context for the current and future trends and developments in supply chain management, it does not directly affect the company’s cloud implementation or performance. Understanding the complexity of information services configuration is not specific to a company’s advanced supply chain strategy that utilizes cloud computing. While it may help the company optimize its information systems and processes, it is not unique to cloud computing and applies to any type of information technology. Understanding the product offering of local and global internet service providers (ISPs) is not critical for a company’s advanced supply chain strategy that utilizes cloud computing. While it may influence the company’s internet connectivity and bandwidth, it is not a core component of cloud computing and does not determine the company’s cloud implementation or performance.

Licensing other companies to manufacture products can create a risk of the licensees becoming competitors, as they may use the licensed technology, know-how, or brand to enter the same or new markets, or to develop similar or improved products12. This can reduce the licensor’s market share, profitability, and competitive advantage3.

Detailed Explanation: Licensing is a business arrangement where one party (the licensor) grants another party (the licensee) the right to use its intellectual property (such as patents, trademarks, designs, or trade secrets) in exchange for a fee or royalty4. Licensing can provide various benefits for both parties, such as expanding into new markets, increasing innovation, reducing costs, and generating income. However, licensing also involves some risks, such as losing control over the intellectual property, compromising the quality or reputation of the product, or facing legal disputes or challenges. One of the possible risks of licensing other companies to manufacture products is that the licensees may become competitors of the licensor. This can happen in several ways, such as12:

The licensees may use the licensed technology, know-how, or brand to enter the same market as the licensor, and compete for the same customers or segments.

The licensees may use the licensed technology, know-how, or brand to enter new markets that the licensor has not explored or penetrated, and gain a first-mover advantage or a larger market share.

The licensees may use the licensed technology, know-how, or brand to develop similar or improved products that can substitute or surpass the licensor’s products, and offer better features, quality, or price.

The licensees may use the licensed technology, know-how, or brand to create new products that can complement or enhance the licensor’s products, and capture more value or customer loyalty.

The risk of the licensees becoming competitors can reduce the licensor’s market share, profitability, and competitive advantage, as well as damage the licensor’s relationship and trust with the licensees3. To mitigate this risk, the licensor should carefully select and evaluate the licensees, negotiate and enforce clear and fair licensing terms and conditions, monitor and protect the intellectual property rights, and maintain a good communication and collaboration with the licensees .

Partnering with a supplier requires ensuring that the supplier has the necessary capabilities. The most appropriate tool for this is supplier certification. This process involves:

Evaluation of Capabilities: Supplier certification assesses the supplier’s ability to meet quality, delivery, and cost requirements consistently.

Standard Compliance: Certification often includes verifying that the supplier complies with industry standards and best practices.

Continuous Improvement: It encourages suppliers to continuously improve their processes and performance to maintain certification.

Building Trust: Certification builds trust and reliability in the supplier’s ability to deliver high-quality products and services.

References

"Supplier Certification: A Continuous Improvement Strategy" by Michael J. Trahan and Thomas P. Reid

APICS, "Supplier Certification and Management"