Nearshoring is the practice of relocating business processes or services to a nearby country, usually one that shares a border or is in the same region1. Nearshoring can help companies reduce costs, improve quality, and increase responsiveness to customer needs.Nearshoring is different from offshoring, which is moving business processes or services to a distant country, usually to take advantage of lower labor costs or favorable tax regimes2.Nearshoring is also different from insourcing, which is performing business processes or services internally within the company3. Nearshoring is also different from outsourcing, which is contracting out business processes or services to a third-party provider, regardless of the location.

According to the CTSC Exam Content Manual, one of the benefits of sharing the visibility on change management progress by team is to allocate resources to the most in need of support1. Sharing the visibility on change management progress by team can help the enterprise to identify the teams that are lagging behind, facing challenges, or requiring assistance in the transformation process, and provide them with the necessary resources, guidance, or coaching to overcome the barriers and achieve the desired outcomes1. The other options are not the main benefits of sharing the visibility on change management progress by team, as they are more related to other aspects of the transformation process. Measuring transformation outcomes in meeting strategy is a benefit of establishing a metrics program that tracks and evaluates the performance and impact of the transformation initiatives2. Demonstrating the transformation milestones is a benefit of creating a communication plan that informs and engages the stakeholders and showcases the achievements and successes of the transformation efforts3. Ensuring an effective metrics program in practice is a benefit of aligning the metrics with the strategic objectives, collecting and analyzing the relevant data, and reporting and acting on the results2.

According to the CTSC Exam Content Manual1, the external boundary conditions that impact an organization’s core strategic vision include market size, customer requirements, legal and regulatory landscape, and competitive situation. These are the factors that define the external environment in which the organization operates and competes. They influence the organization’s strategic choices and capabilities.

1: https://www.ascm.org/ctsc-ecm/

a flat structure is the most appropriate organizational structure for a small start-up company.A flat structure is defined as "a type of organizational structure that has few or no levels of middle management between the employees and the executives"1.A flat structure allows for more direct communication, collaboration, and decision-making among the employees and the leaders, which can enhance innovation, agility, and responsiveness in a start-up environment12.A flat structure also reduces bureaucracy, hierarchy, and overhead costs, and empowers the employees to take more ownership and initiative in their work12.A flat structure is suitable for a small start-up company that has a simple and flexible business model, a lean and cross-functional team, and a customer-centric and value-driven culture12.

According to the ASCM, the Connected Customer Capability allows companies to augment traditional transactional interactions to achieve effective and integrated customer engagement throughout the customer, product and service life cycles, from acquisition to service1.One of the benefits of this capability is to increase the awareness of the customers about the company’s products, services, and value proposition, as well as to generate more leads and referrals1.Awareness is the first stage of the customer journey, where the customer becomes aware of the company and its offerings, and decides whether to engage with the company or not1.By improving the connected customer capability, a company can use various channels and technologies to reach out to potential customers, provide relevant and personalized information, and create a positive impression that attracts and retains customers1. Therefore, awareness is the most likely outcome of enhancing the connected customer capability.

According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to “determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition” (p. 16) 1. This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers’ needs.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the greater value chain is the network of organizations that collaborate to create and deliver value to the end customer1.It includes not only the supply chain, but also other stakeholders such as distributors, retailers, service providers, and even competitors1.To extend the supply chain initiative to the greater value chain, the core team should first define the scope of the greater value chain, which means identifying the key players, processes, and flows that are involved in creating and delivering value1.This will help the core team to understand the current state of the greater value chain, the opportunities and challenges for improvement, and the potential impact of the initiative on the overall value creation1.

1: https://www.ascm.org/ctsc-ecm/

According to the CTSC Exam Content Manual1, the optimize digital discipline focuses on using data and analytics to improve operational efficiency and effectiveness, such as predictive maintenance, asset utilization, and resource allocation. Responsive demand-supply matching (RDSM) is a capability that falls under the optimize discipline, as it aims to balance supply and demand in real time using data-driven insights and actions. Extending RDSM to include predictive maintenance of delivery trucks would indicate additional focus on the optimize discipline, as it would help reduce downtime, costs, and risks associated with truck breakdowns.

1: https://www.ascm.org/ctsc-ecm/

According to the ASCM CTSC Exam Content Manual, the two approaches for applying selected supply chain processes across the organization, and determining the degree to which processes are consistent across the businesses, product lines, and geographic locations are standardization and harmonization1.Standardization is defined as "the process of ensuring that all processes are executed in the same way, using the same inputs and outputs, and producing the same results"1.Harmonization is defined as "the process of ensuring that all processes are aligned and integrated across the organization, and that they support the organization’s strategy, goals, and objectives"1.Bothapproaches aim to improve the efficiency, effectiveness, and agility of the supply chain, and to reduce the complexity, variability, and duplication of processes1.

1: ASCM CTSC Exam Content Manual, page 8.

an acceptable quality level (AQL) is defined in ISO 2859-1 as the “quality level that is the worst tolerable”1.This means that the AQL is the limit of defective units that can be accepted in a continuing series of lots during random sampling quality inspections1.The AQL is usually expressed as a percentage or ratio of the number of defects compared to the total quantity1.The AQL helps to induce the supplier to maintain a process average at least as good as the specified limit, while providing an upper limit for the risk to the consumer of accepting the occasional poor lot1.

1:Acceptable Quality Level (AQL): Definition and How It Works - Investopedia

According to the ASCM SCOR Digital Standard, supply chain performance attributes are the characteristics that define the performance of a supply chain. There are six performance attributes: reliability, responsiveness, agility, costs, asset management efficiency, and sustainability.Among these, flexibility, delivery reliability, and responsiveness are customer related, as they measure how well the supply chain meets the customer needs and expectations in terms of product availability, delivery time, and order fulfillment1. Flexibility is the ability to accommodate changes in demand or supply, delivery reliability is the ability to deliver products on time and in full, and responsiveness is the ability to react quickly to customer requests or market changes. The other options are not customer related, as they measure the internal efficiency or effectiveness of the supply chain.

Process mapping is the term used to describe the creation of a diagram of the workflow of a production or service that includes standardized symbols, inputs, and outputs.Process mapping is a tool of management that visually depicts the flow of work and the steps and people involved in a business process3.Process mapping can help communicate how a process works in a concise and straightforward way, identify inefficiencies or areas of improvement, and document or train the process12.Process mapping uses visual representations, such as basic symbols, to describe each element in the process, such as rectangles for activities, arrows for direction of flow, diamonds for decisions, and ovals for start and end points24.

According to the CTSC Exam Content Manual1, best-in-class companies consistently and significantly do better than their competitors because they utilize benchmark supply chain metrics to gauge performance. Benchmarking is the process of comparing one’s own performance with that of other organizations or industry standards, and identifying the best practices and gaps for improvement. Benchmarking helps best-in-class companies to set realistic and achievable goals, monitor progress, and drive continuous improvement.

1: https://www.ascm.org/ctsc-ecm/

According to the ASCM CTSC Exam Content Manual, change control is defined as “the process of determining, approving, or rejecting alterations to a plan baseline” (p. 18). Change control ensures that changes are properly evaluated, documented, and implemented in a controlled manner. Change control is part of the broader change management process, which also includes change identification, change evaluation, change approval, change implementation, and change verification.

According to the CTSC Exam Content Manual, one of the steps that should be completed before determining training needs is to assess key performance indicators (KPIs)1.KPIs are the metrics that measure the performance and progress of the supply chain transformation objectives and outcomes1.Assessing KPIs can help to identify the gaps and opportunities for improvement in the supply chain processes, functions, and roles, and to determine the training needs and priorities for the workforce2. The other options are not the steps that should be completed before determining training needs, as they are more related to the implementation and evaluation of the training plan.Developing an action plan is a step that follows the determination of training needs, as it outlines the specific actions, resources, and timelines for delivering the training3. Developing a training plan is a step that involves designing the training content, methods, and materials based on the training needs and objectives. Assessing performance management is a step that involves monitoring and reviewing the performance of the trainees and the training program, and providing feedback and recognition.

Supply risk is the risk of not being able to source the required raw materials, components, or services from suppliers to meet customer demand1.It can be caused by various factors, such as supplier failure, quality issues, natural disasters, geopolitical events, or market fluctuations1.Supply risk can affect the cost, quality, and delivery performance of a supply chain1.

1: https://www.ascm.org/ctsc-ecm/

air transport is generally more expensive than ocean transport, but also faster and more reliable1. Therefore, by acquiring more dedicated space on a cargo airline, the manufacturer can expect its transportation costs to increase, but also reduce its need for expedited delivery upgrades, which are usually costly and inefficient2.The other options are not likely to occur, as air transport does not necessarily increase the network path touches or decrease the demand volume growth.

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Supply chain risk management

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the purpose of using value at risk (VAR) in supply chain risk management is to establish a common language to quantify supply chain risk in terms of currency.VAR is defined as "a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame"2.VAR can help to estimate the potential loss that a supply chain may face due to various sources of disruption, such as demand fluctuations, supplier failures, natural disasters, or cyberattacks13.By expressing supply chain risk in monetary terms, VAR can help to communicate the risk exposure to different stakeholders, compare the risk profiles of different supply chain scenarios, and allocate resources for risk mitigation13.VAR can also help to link supply chain risk management with corporate financial performance and strategy14.

According to the ASCM CTSC Exam Content Manual, a champion is generally defined as a sponsor of an improvement effort.A champion is "a senior leader who provides direction and support for a strategic initiative and ensures alignment with the organization’s vision, mission, and goals"1.A champion is also responsible for securing resources, removing barriers, and empowering the improvement team to achieve the desired outcomes1.A champion acts as a role model, a mentor, and a spokesperson for the improvement effort and helps to communicate its value and benefits to the stakeholders1.

1: ASCM CTSC Exam Content Manual, page 9.

According to the ASCM CTSC Exam Content Manual, ecological, ethical, and economic are the three major categories of practices that an organization should evaluate as it transforms its processes to be more sustainable.These categories are also known as the triple bottom line of sustainability, which measures the social, environmental, and financial impacts of an organization’s activities1.Ecological practices refer to the environmental aspects of sustainability, such as reducing greenhouse gas emissions, waste, and resource consumption, and enhancing biodiversity and ecosystem services12.Ethical practices refer to the social aspects of sustainability, such as respecting human rights, labor standards, and diversity, and promoting health, safety, and well-being of employees and communities13.Economic practices refer to the financial aspects of sustainability, such as creating value for stakeholders, ensuring fair and transparent transactions, and investing in innovation and development14.

1: ASCM CTSC Exam Content Manual, page 9.2:Environmental Sustainability: Definition and Importance - Investopedia3:Social Sustainability: Definition, Importance, and Examples - Investopedia4:Economic Sustainability: Definition, Importance, and Examples - Investopedia

According to the CTSC Ex-am Content Manual1,the initial steps in the workflow for developing supply chain performance objectives and aligning the performance drivers to the strategic plan are: conducting a strategic supply chain analysis, performing benchmarking, and gathering insights. These steps help to identify the current state of the supply chain, the gaps and opportunities for improvement, and the best practices and benchmarks from the industry and competitors. They also help to align the supply chain objectives with the business strategy and the customer needs.

1: https://www.ascm.org/ctsc-ecm/

According to the theory of constraints (TOC), a service company that is experiencing long wait times for customer service should identify and address the bottleneck in the customer service process1.A bottleneck is the activity or resource that limits the throughput or output of the entire system2.TOC provides a five-step process for improving any system by focusing on the bottleneck3. The steps are:

• Identify the system’s constraint: find the activity or resource that has the least capacity or the longest cycle time in the customer service process.
• Exploit the system’s constraint: make the most of the available capacity or time of the bottleneck, such as reducing idle time, errors, or rework.
• Subordinate everything else to the system’s constraint: align the other activities or resources in the customer service process to the pace and priority of the bottleneck, such as balancing the workload, synchronizing the flow, or eliminating waste.
• Elevate the system’s constraint: increase the capacity or reduce the cycle time of the bottleneck, such as adding more staff, equipment, or technology, or redesigning the process.
• Repeat the process: monitor the performance of the customer service process and identify and address the next constraint.

The other options are not the best steps to address the issue of long wait times for customer service, according to TOC.Increasing the number of staff members available before the bottleneck will not solve the problem, as it will only create more work-in-process inventory and increase the operational expense4.Implementing a more efficient customer service system may or may not help, depending on whether it addresses the root cause of the bottleneck or not5. Increasing the resources available to the customer service department may also be ineffective or inefficient, as it may not target the specific bottleneck or may create excess capacity or waste.

According to the ASCM CTSC Exam Content Manual, one of the prerequisites for a supply chain transformation roadmap is to standardize and harmonize processes across the enterprise1. This can help to eliminate waste, reduce complexity, improve efficiency, and enable scalability of the supply chain opera-tions2. The other options are not prerequisites, but rather outcomes or enablers of a supply chain transformation roadmap.1: ASCM CTSC Exam Content Manual, page 10.2:1

Very Short Explanation According to the CTSC Exam Content Manual1,risk mitigation is one of the four main risk response strategies, along with risk acceptance, risk avoidance, and risk transfer. Risk mitigation aims to reduce the probability and/or impact of a risk by implementing actions such as contingency planning, alternative sourcing, quality improvement, etc. Risk mitigation is different from risk acceptance, which means accepting the consequences of a risk without taking any action; risk avoidance, which means eliminating the risk by changing the plan or scope; and risk transfer, which means shifting the risk to a third party such as a supplier, insurer, or partner.

1: https://www.ascm.org/ctsc-ecm/

According to the CTSC Exam Content Manual, one of the entry criteria that must be met before initiating a supply chain transformation project is an implementation roadmap1.An implementation roadmap is a document that outlines the scope, objectives, activities, deliverables, milestones, resources, and risks of the transformation project1.An implementation roadmap helps to guide and monitor the execution of the project, as well as to communicate and align the expectations and responsibilities of the stakeholders1. The other options are not entry criteria that must be met before initiating a supply chain transformation project, as they are more related to the outcomes or the actions of the project.Network configuration modifications, information technology (IT) adjustment, and skills and resources changes are examples of the changes that may result from the supply chain transformation project, but they are not prerequisites for starting the project2.

a change agent is someone who initiates, promotes, and supports the change process in an organization. A change agent can be an internal or external consultant, a leader, or a team member who helps to define the vision, strategy, and goals of the change, and also facilitates the communication, collaboration, and implementation of the change.Therefore, option D best describes the role of a change agent involved in supply chain transformation.123

According to the CTSC Exam Content Manual1, Six Sigma is a methodology that aims to improve the quality and performance of processes by reducing variability and defects. Six Sigma uses various tools and techniques to measure, analyze, and control the variation of the forecast and the demand over time for products and services. Some of these tools include control charts, histograms, Pareto charts, scatter plots, and regression analysis. Therefore, Six Sigma is the best tool to use for this analysis. Option A, Lean, is a methodology that aims to eliminate waste and increase value in processes by applying principles such as pull, flow, and continuous improvement. Lean does not focus on measuring and reducing variability of the forecast and the demand. Option C, TOC, is a methodology that aims to optimize the performance of a system by identifying and eliminating the constraints or bottlenecks that limit its throughput. TOC does not focus on measuring and reducing variability of the forecast and the demand. Option D, TQM, is a methodology that aims to achieve customer satisfaction and organizational excellence by involving all stakeholders in the continuous improvement of processes and products. TQM does not focus on measuring and reducing variability of the forecast and the demand.

cross-selling is the practice of offering customers additional items that complement or enhance their main purchase12. In this case, the sales representative has engaged in cross-selling by offering the customer a case to protect the phone, which is a related and useful product for the customer’s main purchase of a new cell phone.Cross-selling can help to increase customer satisfaction, loyalty, and revenue12.

1:Cross-Selling vs. Upselling: Definitions and Differences | Indeed.com2:What Is Cross-Selling? - Investopedia

Supply chain

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According to the ASCM CTSC Exam Content Manual, one of the best practices for communicating a supply chain transformation is to "use a variety of communication channels and methods to reach different audiences and reinforce key messages"1.This includes holding breakout group sessions with each group involving employees from different departments, as this can help to explain the specifics of the transformation, address any concerns or questions, and foster collaboration and buy-in across theorganization23.Distributing one common document by company email, requiring the topic be covered in each department’s monthly meeting, or conducting a one-time, all-company meeting with presentations by leadership may not be sufficient or effective to communicate the details and benefits of the transformation, as they may not cater to the different needs and preferences of the stakeholders, or allow for sufficient feedback and engagement23.

1: ASCM CTSC Exam Content Manual, page 14.2:Supply Chain Communication: 4 Effective Strategies for Better Supplier …3:10 Best Practices For Improving Supply Chain Management - IIENSTITU

According to the CTSC Exam Content Manual, one of the areas that leadership should focus on while developing a roadmap for supply chain transformation is customers, talent, and risks1.Customers are the ultimate source of value and demand for the supply chain, and understanding their needs and expectations is essential for designing a customer-centric supply chain strategy1.Talent is the human capital that drives the supply chain performance and innovation, and developing the skills and capabilities of the workforce is critical for enabling a successful supply chain transformation1.Risks are the potential threats and uncertainties that can disrupt or damage the supply chain, and identifying, assessing, and mitigating them is vital for ensuring the resilience and sustainability of the supply chain1. The other options are not the most pertinent areas for leadership to focus on while developing a roadmap for supply chain transformation, as they are more operational or tactical aspects of the supply chain, not strategic or transformational.Suppliers, inventory, and payment terms are examples of the sourcing process elements that affect the cost, quality, and availability of the supply chain inputs2.Warehouses, carrier relationships, and technology are examples of the delivery process elements that affect the efficiency, responsiveness, and reliability of the supply chain outputs2.Data centers and web portal are examples of the information technology infrastructure that supports the supply chain integration and visibility3.

According to the ASCM, the SCOR model provides a framework for measuring the performance of the supply chain across five core processes: Plan, Source, Make, Deliver, and Return. The model defines three levels of metrics: Level 1, Level 2, and Level 3. Level 1 metrics are strategic metrics that reflect the overall performance of the supply chain, such as customer satisfaction, total cost, and return on assets. Level 2 metrics are diagnostic metrics that measure the performance of each core process, such as reliability, responsiveness, agility, cost, and asset management.Level 3 metrics are operational metrics that measure the performance of specific activities within each core process, such as order fulfillment cycle time, production yield, and inventory turns1.

The ASCM recommends that organizations use Level 2 metrics as their KPIs, because they provide a balanced view of the supply chain performance across the five core processes and the attributes of reliability, responsiveness, agility, cost, and asset management.Level 2 metrics also enable benchmarking and best practice identification, as well as alignment with the customer and stakeholder expectations1.Level 1 metrics are too high-level and may not reflect the specific performance of each core process, while Level 3 metrics are too detailed and may not capture the overall performance of the supply chain1. Therefore, Level 2 metrics are the most suitable for establishing KPIs.

According to the CTSC Exam Content Manual1, the Measure phase of the Six Sigma DMAIC methodology involves collecting data on current performance and issues. The Measure phase aims to establish a baseline for the process and quantify the gap between the current state and the desired state. The Measure phase also involves validating the measurement system, defining the process metrics, and calculating the process capability and sigma level. Option A, Control, is the phase that involves implementing and sustaining the improvements. Option B, Improve, is the phase that involves identifying and testing the solutions. Option C, Analyze, is the phase that involves analyzing the data and identifying the root causes.

According to the CTSC Exam Content Manual1, statistical process control (SPC) is a key component of a total quality management (TQM) program. SPC is a technique that uses statistical methods and tools to monitor and control the variation and performance of a process. SPC helps to ensure that the process is stable, capable, and predictable, and that the output meets the customer specifications and expectations. SPC also helps to identify and eliminate the causes of defects and errors, and to improve the quality and efficiency of the process. Option B, JIT inventory, is a component of lean manufacturing, not TQM. JIT inventory aims to reduce inventory levels and costs by delivering materials or components just before they are needed in the production process. Option C, autonomous maintenance, is a component of total productive maintenance (TPM), not TQM. Autonomous maintenance involves empowering the operators to perform basic maintenance tasks on their own equipment, such as cleaning, lubricating, inspecting, and adjusting. Option D, SCO, is a component of supply chain management, not TQM. SCO involves optimizing the flow of materials, information, and money across the supply chain network, from the suppliers to the customers.

According to the CTSC exam content manual1, the strategic background is one of the items needed to define the scope of the supply chain transformation project, along with the internal and external profile of the organization. The strategic background includesthe vision, mission, values, goals, and objectives of the organization, as well as the drivers and enablers of the transformation.

According to the CTSC Exam Content Manual, one of the ways to reduce the costs of poor quality in the supply base is to establish education and quality training for the suppliers, as this can help them improve their quality performance, reduce defects, and prevent problems1.Education and quality training can also enhance the collaboration and communication between the buyers and the suppliers, and foster a culture of continuous improvement2. The other options are not the best approach to reduce the costs of poor quality in the supply base, as they are more reactive than proactive, and they do not address the root causes of the poor quality.Conducting supplier appraisals, tracking costs of returns, and inspecting all received products are examples of appraisal costs, which are part of the costs of poor quality, not the solution3.

According to the ASCM CTSC Exam Content Manual, a data steward is a key role within a digital supply chain transformation team that is responsible for the quality and accuracy of the data feeds.A data steward is defined as "an oversight or data governance role within an organization, and is responsible for ensuring the quality and fitness for purpose of the organization’s data assets, including the metadata for those data assets"1.A data steward may share some responsibilities with a data custodian, such as the awareness, accessibility, release, appropriate use, security and management of data1. A data steward would also participate in the development and implementation of data assets.A data steward may seek to improve the quality and fitness for purpose of other data assets their organization depends upon but is not responsible for1.Data stewards have a specialist role that utilizes an organization’s data governance processes, policies, guidelines and responsibilities for administering an organizations’ entire data in compliance with policy and/or regulatory obligations1.The overall objective of a data steward is the data quality of the data assets, datasets, data records and data elements1.This includes documenting metainformation for the data, such as definitions, related rules/governance, physical manifestation, and related data models (most of these properties being specific to an attribute/concept relationship), identifying owners/custodian’s various responsibilities, relations insight [definition needed] pertaining to attribute quality, aiding with project requirement data facilitation and documentation of capture rules1.Data stewards begin the stewarding process with the identification of the data assets and elements which they will steward, with the ultimate result being standards, controls and data entry1.The steward works closely with business glossary standards analysts (for standards), with data architect / modelers (for standards), with DQ analysts (for controls) and with operations team members (good-quality data going in per business rules) while entering data1.Data stewardship roles are common when organizations attempt to exchange data precisely and consistently between computer systems and to reuse data-related resources1. Master data management often [quantify] makes references to the need for data stewardship for its implementation to succeed.Data stewardship must have precise purpose, fit for purpose or fitness1.

1:Data steward - Wikipedia

According to the ASCM CTSC Exam Content Manual, the formula for raw material inventory days of supply is the value of raw materials inventory divided by the “value of transfers divided by 365 days” 1. The value of transfers is the same as the cost of goods sold, which is the total cost of producing and delivering the prod-ucts to the customers 2. Therefore, the formula can be simplified as the value of raw materials divided by the cost of goods sold per day, which is the same as option A. The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.

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According to the ASCM CTSC Exam Content Manual, one of the most frequently used approaches in measuring operating income in a gap analysis is the profitability increase.The profitability increase is defined as "the difference between the current operating income and the potential operating income that could be achieved by implementing the best practices identified in the gap analysis"1. The profitability increase reflects the potential improvement in the organization’s financial performance by closing the gaps in its supply chain processes.The profitability increase can be calculated by multiplying the gap percentage by the current operating income1.

1: ASCM CTSC Exam Content Manual, page 15.