03 - Strategic Procurement Flashcards
Under which circumstances is it better to buy? Name 5!
1) lower cost for storage, security holdings and capital investment
2) lower construction depth and fixed costs
3) fast adaptation to changes in demand
4) less production risk, scrap costs and overtime
5) less machinery, facilities and equipment
Under which circumstances is it better to make? Name 5 of these circumstances!
1) effective control of quality and production
2) confidentiality of deployment
3) increasing core competencies
4) shorter reaction time
5) improved utilization of equipment and personnel
Name four different procurement strategies!
1) single sourcing
2) dual sourcing
3) multiple sourcing
4) global sourcing
5) local sourcing
6) modular sourcing
7) just-in-time
Which problems can be caused by outsourcing?
1) currency risk, exchange rate fluctuations
2) supply and logistic problems
3) lack of reliability, quality, trademark and patent infringement
4) different mentality, language, venue
Explain the difference between just-in-time and just-in sequence!
JIT:
Procurement strategy, synchronous to production which supplies the demanding unit with small quantities without the need for approval or control of goods
JIS:
Production-synchronic procurement strategy that links the points of consumption demand with sunset cycle- respectively sequence exact provided, in lieu of a receipt of goods and testing
Name three tangible resources and three intangible resources!
Tangible: 1) machinery 2) raw material 3) locations Intangible: 1) employees 2) know-how 3) patents
How can competences be categorized?
1) core competence
2) competence gaps
3) competence standards
4) competence potentials
What are the advantages for single sourcing?
1) close cooperation
2) lower prices trough high volume orders
3) lower order and transaction costs
4) fewer suppliers and contacts
5) less complexity of logistics and better control
