SCM Flashcards
What is Category Management?
process of governing and managing categories of goods, works, and services.
What is the objective of Category Management?
define the sourcing and category strategy to guide procurement activities in the business.
What is the Kraljic matrix?
used as a first-level lens to categorize procurement items sourced by the organization.
How does the Kraljic matrix categorize items?
based on their impact on the business and supply risk.
What are bottleneck items?
have a low profit impact but high supply risk.
What are routine items?
low risk and low impact on organizational profitability.
What is category portfolio management?
the process of managing a group of categories as a portfolio.
What is category segmentation?
process of dividing categories into smaller groups based on common characteristics.
What is business alignment?
the process of aligning procurement activities with the overall business strategy.
What is a category strategy?
a plan for how to manage a specific category of goods, works, or services.
What is local content
the percentage of goods, works, or services that are sourced locally.
What is the purpose of periodic review of procurement categories?
to ensure that they are aligned with business needs and supply risk profiles.
What is the advantage of using the Kraljic matrix?
it provides a simple and effective way to categorize procurement items.
What is the disadvantage of using the Kraljic matrix?
it may oversimplify the complexity of procurement categories.
What are the characteristics of bottleneck items?
- low profit impact
- high supply risk.
What are the similarities between routine items and leverage items?
they both have a low risk.
What are the differences between bottleneck items and strategic items?
Strategic items have a high-profit impact and high supply risk.
What are the advantages of category management?
- improved supplier relationships
- increased efficiency
- reduced costs
In Tender evaluation, ensure contract is awarded to the most
Responsive bidder
During reverse auctions, seelers’ bids
decrease in price
Reverse auction is beneficial for
non-critical standardized items where there are many suppliers/vendors to ensure
- quick comparison of the products and services needed, - find out the products or service’s real price,
- save time
SCM procurement planning processes include
Plan procurement
Category management
SCM Sourcing processes include
Purchase requisition
Determine procurement method
Issue EOI
Issue RFQ
SCM Inventory management processes include
Clearing and Haulage
Goods receipt
Warehousing
Stock review
Stock replenishment
Stocl write-off & Disposal
Stock transfer
Custody transfer
Approved procurement methods
Open Competitive /Restrictive tendering
Sole/Single Sourcing
Emergency
Call-off
Reverse auction
P-Cards
Competitive bidding has the following types
Open comnpetitive bidding
Restricted tendering
Selective bidding
Two-stage bidding
