Supply Management And Strategy Devolopment

Question 1

What is supply management ?

Answer 1

It is about thinking holistically across the hole company and entire value chain
- cost optimalizacion
-resource utilization
- value creation

Question 2

Where can we save the most money?

Answer 2

The places where the cost are biggest

Question 3

Formulation of the supply strategy ?

Answer 3

Business strategy
Make or buy analyses
Portfolio analysis
Design internal organizational structure

Question 4

Define business strategy ?

Answer 4

For example IKEA has the concept of selling low cost products that many people can buy. The business strategy provides clear guidelines for the procurement department because they know what they want to achieve

Question 5

Define make or buy analysis

Answer 5

This is choice where businesses decide what they want to make and what they want to buy. These kind of decisions are often decided by the management team but the procurement department can always provide inputs

Question 6

Define portfolio analysis

Answer 6

This is the buying categories a business has. We have non critical, heavyweight, bottleneck and strategic items.

Question 7

What is the kraljic matrix

Answer 7

This is divided into 4 categories from low risk with low profit to high risk high profit items
Non-criitical
Bootle-neck
Leverage items
Strategic items

Question 8

What is Non critical item

Answer 8

Low risk, low profit impact.