Supply Chain Management

Question 1

*refers to a specific organizational unit within a company that is responsible for managing procurement and sourcing activities.
*is to streamline and optimize the procurement process to ensure that the company acquires the goods and services it needs efficiently, cost-effectively, and in alignment with its strategic goals.

Answer 1

purchasing organization

Question 2

system where a single team or a department handles all the purchasing of goods and services for the organization.

Answer 2

Centralized purchasing also known as centralized procurement

Question 3

SIGNIFICANT REDUCTION IN OVERHEAD EXPENSES

Answer 3

advantage

Question 4

NOT SUITABLE FOR ORGANIZATIONS WITH BRANCHES WORLDWIDE

Answer 4

disadvantage

Question 5

INCREASED VISIBILITY AND CONTROL

Answer 5

advantage

Question 6

ENHANCED PURCHASING POWER AND COST SAVINGS

Answer 6

advantage

Question 7

CULTIVATES STRONG SUPPLIER RELATIONSHIPS

Answer 7

advantage

Question 8

EFFICIENT TEAMWORK AND COLLABORATION

Answer 8

advantage

Question 9

usually adopted by businesses that are geographically diverse because it can be beneficial for the long-term development of the firm.

Answer 9

decentralized purchasing model

Question 10

REDUCED BUREAUCRACY

Answer 10

advantage

Question 11

DIMINISHED PURCHASING POWER

Answer 11

disadvantage

Question 12

EFFORTLESS COLLABORATION

Answer 12

advantage

Question 13

LOCAL SOURCES AND SUPPLIERS

Answer 13

advantage

Question 14

INADEQUATE VISIBILITY AND CONTROL

Answer 14

disadvantage

Question 15

ACCELERATED PURCHASING PROCESS

Answer 15

advantage

Question 16

INVENTORY REFERS TO THE TOTAL COSTS ASSOCIATED WITH ACQUIRING, PRODUCING, AND HOLDING ONTO PRODUCTS. THIS INCLUDES EVERYTHING FROM RAW MATERIALS TO WORK-IN-PROCESS INVENTORY TO FINISHED GOODS

Answer 16

PROCUREMENT COST

Question 17

THE MAIN DRIVERS OF PROCUREMENT COST IN INVENTORY ARE:
the higher the price the higher the cost of products produced with those materials

Answer 17

RAW MATERIAL PRICES

Question 18

THE MAIN DRIVERS OF PROCUREMENT COST IN INVENTORY ARE:
anything necessary to keep products in stock like warehouse space etc.

Answer 18

STORAGE COSTS

Question 19

THE MAIN DRIVERS OF PROCUREMENT COST IN INVENTORY ARE:
these include things like energy bills, wages and insurance premiums related to manufacturing operations

Answer 19

FACTORY OVERHEAD COSTS

Question 20

THE MAIN DRIVERS OF PROCUREMENT COST IN INVENTORY ARE:
these include anything spent on advertising or public relations related to selling products

Answer 20

MARKETING COSTS

Question 21

WAYS TO REDUCE PROCUREMENT COST IN INVENTORY

Answer 21

USE ANALYTICS TO TRACK INVENTORY LEVELS AND IDENTIFY AREAS THAT ARE OVER- OR UNDER-SUPPLIED.

2. CREATE A PROCUREMENT PROCESS THAT IS ALIGNED WITH YOUR COMPANY’S OVERALL STRATEGY.
3. OUTSOURCE CERTAIN PROCUREMENT FUNCTIONS, SUCH AS BUYING MATERIALS OR SERVICES FROM THIRD-PARTY SUPPLIERS.
4. IMPLEMENT LEAN PROCUREMENT TECHNIQUES, SUCH AS USING QUICK TURNAROUND TIMES FOR PURCHASING DECISIONS AND REDUCING THE NUMBER OF PURCHASE REVIEWS.

Question 22

also known as supplier evaluation or supplier performance management.

Answer 22

SUPPLIER APPRAISAL

Question 23

Making sure the stuff a supplier gives the company is good.

Answer 23

CHECKING QUALITY

Question 24

Ensuring that the products or services supplied meet the required quality standards is a crucial aspect.

Answer 24

QUALITY CONTROL

Question 25

Timely delivery of goods or services is essential to prevent disruptions in production or operations

Answer 25

ON-TIME DELIVERY

Question 26

Evaluating the cost-effectiveness of suppliers is important to ensure that a company is getting value for its money.

Answer 26

COST AND PRICING

Question 27

The effectiveness of communication and collaboration with suppliers is often evaluated.

Answer 27

COMMUNICATION AND COLLABORATION

Question 28

Assessing the risk associated with a supplier is crucial.

Answer 28

RISK MANAGEMENT

Question 29

Supplier appraisal is not a one-time event; it should be an ongoing process.

Answer 29

CONTINUOUS IMPROVEMENT

Question 30

Many organizations use supplier scorecards to quantitatively assess and rank suppliers based on their performance in various categories.

Answer 30

SUPPLIER SCORECARDS

Question 31

Timely delivery of goods or services is essential to prevent disruptions in production or operations

Answer 31

SUPPLIER RELATIONSHIPS

Question 32

Supplier appraisal often ties back to contractual agreements. Suppliers are expected to meet the terms and conditions specified in their contracts, and non-compliance may have consequences.

Answer 32

CONTRACTUAL AGREEMENTS

Question 33

7 R's of Purchasing This refers to purchasing the correct product or service that aligns with the organization's requirements and specifications.

Answer 33

Right Product:

Question 34

Procure the appropriate quantity of goods or services to meet current and future demand without excessive overstocking or shortages.

Answer 34

Right Quantity:

Question 35

Negotiate and secure the most favorable price for the product or service, considering market conditions, supplier relationships, and cost analysis.

Answer 35

Right Price:

Question 36

Choose reliable and reputable suppliers who can consistently provide high-quality products or services on time and according to the agreed-upon terms and conditions.

Answer 36

Right Supplier:

Question 37

Ensure that goods or services are delivered promptly to meet production schedules or customer demands, avoiding disruptions in the supply chain.

Answer 37

Right Time:

Question 38

Have a logistics strategy in place to ensure that purchased items are delivered to the correct location within the organization, minimizing logistical challenges and expenses.

Answer 38

Right Place:

Question 39

Implement quality assurance and control processes to guarantee that the purchased products or services meet the required quality standards and specifications.

Answer 39

Right Quality:

Question 40

Centralized key Characteristics

Answer 40

Consistency Efficiency and standardization Reduced duplication

Question 41

Decentralized Key Characteristics

Answer 41

Suitability variability responsibility

Question 42

3 types of purchasing cost

Answer 42

Direct cost indirect cost unplanned cost

Question 43

12 criteria to evaluate

Answer 43

Quality Price or Cost Performance Service Financial Strength Lead Time Technical Ability Flexibility Development Management Approach Geographic Location Environmental Regulation Compliance