APICS Certified Supply Chain Professional Exam

According to the APICS CSCP - Supply Chain Management Certification, outsourcing is the process of transferring some or all of the activities or functions of a firm to an external provider or supplier. Outsourcing can have many benefits, such as reducing capital investment, achieving economies of scale, increasing flexibility, and accessing specialized skills or technologies. However, outsourcing also involves some risks, such as conflicting objectives between the buyer and the supplier, loss of control over quality or delivery, loss of core competencies or competitive advantage, increased dependency or vulnerability, or ethical or social issues.

According to the APICS CSCP - Supply Chain Management Certification, a free trade zone (FTZ) is a designated area within a country where goods can enter, undergo further modification, and then be exported without paying customs duties or taxes. FTZs are used to encourage foreign trade and investment, reduce transportation costs, and improve supply chain efficiency.

According to the APICS Supply Chain Operations Reference Model SCOR, an ineffective sales and operations planning (S&OP) process is most likely to impede the implementation of a demand management system. S&OP is a process that aligns the demand and supply plans across the supply chain, based on the business objectives and customer expectations. S&OP helps to balance demand and supply, improve forecast accuracy, reduce inventory costs, and increase customer satisfaction. An ineffective S&OP process can result in poor demand management, which can lead to stockouts, excess inventory, lost sales, or dissatisfied customers.