Exam 6: Supply Management and Commodity Strategy Development

The goal of _____ is to be able to understand, identify, and exploit cost savings opportunities that may have been overlooked by business unit managers or even by suppliers in bringing the products and services to the appropriate location.

Which of the following elements is false regarding Phase 3, Limited Integration, of supply management strategy development?

In the moderate development phase of supply management strategy development, supply management councils or lead buyers may be responsible for entire classes of commodities, and company-wide databases by region may be developed to facilitate this coordination.

Total cost of ownership typically includes costs associated with late delivery, poor quality, or other forms of supplier nonperformance.

A _____ is concerned with (1) the definition of businesses in which the corporation wishes to participate and (2) the acquisition and allocation of resources to these business units.

All of the following are examples of factors in Porter's market internal competition force except _____.

All of the following are examples of Porter's power of buyers except _____.

One factor that is increasing the risk exposure to supply chain disruption is the decreasing propensity of companies to outsource processes to global suppliers.

Global sourcing can be used to access new markets or to gain access to the same suppliers that are helping global companies become more competitive.

_____ is a simultaneous engineering approach that occurs between buyer and seller and seeks to maximize the benefits received by taking advantage of the supplier's design capabilities.

Which of the following is not one of the questions to be addressed when conducting a spend analysis?

Increasing revenues involves either raising prices or keeping prices stable and increasing volume.

When purchasers find that suppliers' capabilities are not high enough to meet current or future expectations, those suppliers should always be eliminated from the supply base.

A _____ is concerned with (1) the scope or boundaries of each business and the links with corporate strategy and (2) the basis on which the business unit will achieve and maintain a competitive advantage within an industry.

In the _____ of the process of supplier segmentation, the supplier views the buyer as a core customer, as the size of the account is significant to the supplier, and the account is also important from a strategic perspective.

Which of the following is not one of the examples of Porter's threat of new entrants?

Which of the following is not true in regards to low-cost country sourcing?

Which of the following is not one of the steps in the strategic sourcing process?

The strategic sourcing process ends when a contract is signed with a supplier.

Which of the following is not one of the examples of Porter's threat of substitute products and services?