Exam 6: Supply Management and Commodity Strategy Development

In general, the less important the category, the more critical it is that internal stakeholders will be involved.

[A] _____ is a tool to structure and segment the supply base and is used as a means of classifying suppliers into one of four types.

A _____ has a high volume of internal consumption, is readily available, is important to the business, and represents a significant proportion of spend.

Supply base optimization usually refers to increasing the number of suppliers used.

A _____ has unique requirements or niche suppliers, yet is significant to the business.

A supplier catalog allows users to order directly through the Internet using a company procurement card (just like a credit card) with the delivery made directly to the site the next day.

[A] _____ is required to identify the specific capabilities and financial health of key suppliers that are in the supply base or that may not currently be in the supply base.

A longer-term relationship should never include a joint product development relationship with shared development costs and intellectual property.

Objectives drive goals, whether at the highest levels of an organization or at the functional or department level.

The insourcing/outsourcing decision cannot be applied to virtually every process conducted within the traditional walls of an organization.

In the _____ of the process of supplier segmentation, the supplier views the buyer as an unimportant customer, and to further make the situation worse, the volume the buyer has with this supplier is insignificant to the supplier.

As a strategic planning tool, a SWOT analysis can provide insight even with limited data.

Which of the following elements is false regarding Phase 1, Basic Beginnings, of supply management strategy development?

Which of the following is not one of the examples of Porter's power of suppliers?

A _____ is used in regularly scheduled review meetings with suppliers, so that deficiencies in performance can be noted, discussed, and acted upon.

Face-to-face negotiation is best when all of the following conditions apply except when _____.

Longer-term relationships are sought with suppliers that have exceptional performance or unique technological expertise.

A preferred supplier designation indicates that the selected supplier should receive the business under all possible conditions.

In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.

_____ is the process of determining the appropriate number and mix of suppliers to maintain.