Exam 6: Category Strategy Development

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

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

The key to good market intelligence is to _____ data, which means to explore, compare, and contrast data from multiple sources before it can be validated.

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

In the initial stages of supply management strategy development, supply management adopts essentially a short-term approach and reacts to complaints from its internal customers when deliveries are late, quality is poor, or costs are too high.

A category strategy is a decision process used to identify which suppliers should provide a group of products or services, the form of the contract, the performance measures used to measure supplier performance, and the appropriate level of price, quality, and delivery arrangements that should be negotiated.

[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.

After the buyer-supplier relationship has been established, buyers no longer need to track supplier performance over time.

Which of the following is not one of the goals for sourcing a routine commodity?

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

Which of the following elements is Falseregarding 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?

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 companywide databases by region may be developed to facilitate this coordination.

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

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and, therefore, receives preference during the supplier selection process.

The whole point of collecting _____ is to understand the prevailing market conditions and the ability of current or potential new suppliers to deliver the product or service effectively.

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

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

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