According to the ASCM, a comprehensive supply chain transformation action plan is a roadmap that guides the organization to align its supply chain strategy with its business strategy, and to achieve higher performance, efficiency, and sustainability in its supply chain operations1. The main outcome of such a plan is to enable the organization to deliver better value to its customers and stakeholders, and to improve its top and bottom line results1. Some of the steps involved in creating a supply chain transformation action plan are:

Assessing the current state of the supply chain and identifying the gaps and opportunities for improvement

Defining the future state of the supply chain and setting the vision, goals, and objectives

Developing the business case for change and securing the buy-in and support from the senior management and cross-functional teams

Selecting the best practices, methodologies, and technologies to implement the change and optimize the supply chain processes

Executing the change and monitoring the progress and results1

The other options are not the main focus of a comprehensive supply chain transformation action plan, but rather some of the aspects or outcomes of the plan. For example, traditional metrics around supply chain performance are important to measure the current state and the improvement potential, but they may not capture the strategic value and impact of the supply chain transformation2. Perfect order targets and inventory levels are some of the operational goals that the plan may aim to achieve, but they are not the ultimate outcome of the plan3. Best practices around Plan, Source, Transform, and Fulfill processes are some of the tools and methods that the plan may use to optimize the supply chain operations, but they are not the purpose of the plan4. Therefore, the most accurate answer is A.

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/

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 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 ASCM SCOR Digital Standard, the SCOR model uses the term optimized to indicate the highest level of performance for a given metric. Optimized metrics are those that are prioritized by the organization and have a target performance level that is based on the best-in-class benchmark or the desired competitive advantage. The SCOR model defines six levels of performance for each metric: inferior, poor, nominal, competitive, advantage, and optimized (p. 17) 1. The other options are not used in the SCOR model to prioritize metrics and estimate target performance level.