Exam 5: Sourcing Materials and Services

In the Implement Sourcing Strategy step, the most important thing is to:

Name several criteria that are important in supplier selection. Which one is the most important?

S trategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the:

Landed costs are independent of sales/FOB terms.

Strategic sourcing is almost the same as procurement.

There are seven steps in the Strategic Sourcing Process.

Summarize the advantages and potential drawbacks of e-procurement. If you were responsible for procuring supplies for a firm, how would you guard against the concerns?

"Distinctives" are low-risk, high-value items that are fundamental to the company's finished product.

Define and discuss the basic types of e-commerce business models used in procurement and sourcing.

The most important factor in supplier selection is usually financial health.

A type of e-commerce site where product or service information is provided by multiple third parties, such as Amazon or Expedia, is called a(n):

What supplier selection criteria are described by price and financial stability?

What supplier selection criteria are described by attitude, cultural compatibility, training aids, packaging, and repair service?

Commodities are items or services that are low in risk but high in value.

What supplier selection criteria are described by production capability, labor relations, and operating controls?

While organizations should seek to build strong relationships with suppliers, they should never ask or expect suppliers to provide input into processes such as product design, engineering assistance, or quality control.