Exam 6: Category Strategy Development

Buying firms use competitive bidding when _____ is a dominant criterion and the required items or services have ______ specifications.

Identifying the major suppliers in a market is an important first step of any supplier analysis.

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.

In supplier analysis, _____ requires identifying critical performance criteria and identifying relative competitive performance.

Which of the following is not one of Porter's five forces?

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.

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

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

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.

In supplier evaluation, different aspects of _____ include management's commitment to continuous process and quality improvement, its overall professional ability and experience, its ability to maintain positive relationships with its workforce, and its willingness to develop a closer working relationship with the buyer.

A _____ refers to a specific family of products or services that is used in delivering value to the end customer.

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

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.

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

Supply base optimization requires an analysis of the number of suppliers required currently and in the future for each purchased item.

Which of the following is not one of the primary ways that companies create shareholder value?

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

A _____ specifies how a group tasked with developing the strategy for the specific category being purchased will achieve goals that in turn will support higher level strategies.

More complex logistics and currency fluctuations require measuring all relevant costs before committing to a worldwide source.

A/An _____ may be used as a decision support tool in which the sourcing team assigns a weight to the different categories and develops a numerical score for each supplier in each category, thereby developing a final performance score.