Exam 5: Sourcing Materials and Services

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

There are four types of products and services that are purchased with varying degrees of importance. Name all four, and choose two to discuss in terms of risk and value.

There are three definitions to aid understanding of some of the similarities, differences, and linkages between purchasing, procurement, and strategic sourcing. Define them, and discuss the differences between the three.

When a firm makes a "make" decision when analyzing whether to "make or buy," they may still have to purchase some types of inputs from outside suppliers.

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

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.

What are at least three types of certifications and registrations, what do they signify, and why are they important?

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called:

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

In the Assess Supply Market step, the firm:

Procurement serves as a critical link between members of the supply chain.

There are four steps in the Managing Sourcing and Procurement Processes. Which of the following is not one of them?

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a:

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

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