Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary focus of the execution activity in the order-to-cash cycle?

1. Making strategic sourcing decisions

2. Placing orders and delivering shipments

3. Establishing long-term contracts with suppliers

4. Forecasting future supply needs

The correct answer is: Placing orders and delivering shipments

The execution activity in the order-to-cash cycle primarily revolves around placing orders and delivering shipments, which is crucial for fulfilling customer needs and ensuring satisfaction. This activity encompasses the concrete steps starting from order placement, processing, and ultimately shipping the product to the customer. When a customer places an order, the execution phase is initiated, requiring coordination among different functions within the organization, including inventory management, logistics, and transportation. Its focus is on operational efficiency, ensuring that products are delivered as promised and within expected timeframes. This contrasts with other activities listed. Making strategic sourcing decisions pertains to the planning and supplier selection phases rather than execution. Establishing long-term contracts with suppliers is also focused on supplier relationships and agreements rather than the actual fulfillment of customer orders. Forecasting future supply needs deals with planning and demand assessment to anticipate future requirements, which is separate from the immediate execution of current orders. Hence, placing orders and delivering shipments encapsulate the essence of execution in the order-to-cash cycle, making it the correct answer.