Sourcing

Question 1

What is the difference between Tier 1 and Tier 2 Suppliers?

Answer 1

How many layers away from you they are.

Question 2

What makes a supply chain successful?

Answer 2

Goods and Services going upstream

Money and Information going downstream

Question 3

What is procurement/purchasing?

Answer 3

The process of obtaining materials, products, and services for a firm/organization

Question 4

What is the focus of procurement?

Answer 4

ensure an uninterrupted flow of appropriate quality resources in an effective and efficient manner

Question 5

When procuring things, what do you need to know about the resources you’re buying?

Answer 5

Everything

Question 6

What are the Procurement Professional Requirements

Answer 6

Resources
Suppliers
Processes
Technologies

Question 7

What do you need to know about your suppliers?

Answer 7

Who can meet your buying needs

Question 8

What do you need to know about the procurement processes?

Answer 8

a solid understanding of the process inside and out

Question 9

What do you need to know about the technologies involved in your procurement process?

Answer 9

how new technologies will influence both processes and products

Question 10

how does procurement impact the Net Income?

Answer 10

Increased Sales and Decreased Cost

Question 11

What is the Profit Leverage Effect?

Answer 11

Dollars saved in the procurement process immediately show up in the operating profit

Question 12

Why is today’s procurement environment challenging?

Answer 12

Competition is increasing

Markets are growing in globality

Change is happening faster with technology

Customers are more knowledgable

Risks are higher

Question 13

What is the integrative Strategy Development

Answer 13

Corporate Strategy

Business Unit Strategy

Supply Management Strategy

Commodity Strategy

Question 14

What is corporate strategy?

Answer 14

Definition of the business

How Resources are acquired and allocated

Long term mission of a company

Question 15

What is a supply management strategy

Answer 15

supporting the business level strategies

how to compliment other functional areas

Question 16

What Is commodity strategy

Answer 16

how to purchase to support higher level strategies

Question 17

What is Strategic procurement

Answer 17

finding ways to use supplier capabilities to drive sales

leveraging supply chain to maintain comp. advantage and strategic position

Question 18

What is a spend analysis

Answer 18

Analyzing what was bought

analyzing what was received

analyzing if the price was accurate per the contract and quality

identify if the budget was correct

find opportunities to optimize

Question 19

What is purchasing Management?

Answer 19

Non Critical Items

Focus on functional efficiency and abundant supply

Question 20

what is sourcing management?

Answer 20

Bottleneck Items

focus on cost and reliable short-term sourcing
production based scarcity

Question 21

what is material management?

Answer 21

Leverage items

Focus on Cost/Price and material flow management
abundant supply

Question 22

what is supply management?

Answer 22

Strategic Items

Focus on long term availability
natural scarcity

Question 23

What type or procurement is LOW complexity and LOW importance of purchase?

Answer 23

Purchasing Management

Question 24

What type or procurement is LOW complexity and HIGH importance of purchase?

Answer 24

material Management

Question 25

What type or procurement is HIGH complexity and LOW importance of purchase?

Answer 25

Sourcing Management

Question 26

What type or procurement is HIGH complexity and HIGH importance of purchase?

Answer 26

supply Management

Question 27

What are some things to consider with Total Cost Ownership?

Answer 27

Use Data
Work as a team
Focus on Big Costs First