Exam 8: Supplier Selection and Evaluation

performance review is a set of expectations and measurements for controlling long-term relationships with existing strategic suppliers.

Relationships with strategic suppliers need to be closely managed. One way to keep up on supplier relationships is for a __________ organization is to compile ___________ for each strategic __________.

In today's competitive environment, progressive firms must be able to produce quality products at reasonable prices. Product quality is a direct result of the _______________ and the ___________.

_____________ gives a firm more control over the part in question. However, the greater the percentage of internal parts an assembly firm produces, the greater their need to have ___________ in each of the areas involved.

In addition, large buying organizations increasingly are demanding that their suppliers become certified through third-party organizations, such as ____________ certification or _______________ National Quality Awards.

In order for good communication to exist between buyer and supplier, common ground should exist in all of the following areas with one exception. Which is the exception?

__________ relationships are commonly found within a buying organization's preferred/tier-____ service providers and suppliers list.

Much debate has taken place concerning the number of suppliers a firm should use.One side of the debate is the _____________ side. This involves the use of two or more suppliers.The other side of the debate is the ____________ policy, in which only one supplier is used to supply a particular part.

The second group of methods used to reduce the number of suppliers a firm uses is what the textbook refers to as the _________ methods.

Many large __________ firms are implementing supplier relationship management programs in their business ________ to ensure that they maintain their competitive edge.

Traditional purchasing professionals who act as little more than order placers are giving way to __________ involved ___________ managers who control vital inputs to the production process.

The following are key mistakes in the make-versus-buy decision: In most cases, businesses are not proficient at identifying their core capabilities. Buyers usually rationalize in-house decisions based on capacity capabilities.uying organizations wait too late to assess the value of consultants or strategic partners.uyers do not recognize that the product or service is approaching maturity.There are always new competitors with new technology attacking the market.

___________ suppliers are those that are important to the buying firm, but alternative suppliers could be found with some effort.

The ____________ method's major disadvantage is its dependence on the judgment of its users. The system is largely dependent on the memories of personnel to explain what "unsatisfactory" or "good" means. With this method, there is no concrete supporting data.

___________ of the process by the supply manager/purchasing department makes certain that there is only one source of strategic ____________ for the entire firm. This method also ensures that the purchasing department is knowledgeable about all strategic _________ and aware of how they are rated by each function.

______________ relationship is almost required with transactional/tier-_______ suppliers and assumes that the buying firm can lower prices to help keep its competitive edge in the market.

or the buying firm manager, specific communication strategies should be designed into their ______ efforts. The program should be formalized with rou?tine communication; incorporate supplier training, education and site visits to add in the learning process; and provide opportunities for feedback to clarify program objectives and improvement suggestions.

ollaboration or collaborative relationships, usually found with the buying firm's strategic/tier-______ suppliers, include the ___________ component that is missing in a cooperative relationship.

ach business unit and department should have a clear understanding of the ________ of the whole firm and have a departmental _________ that complements and aids the overall __________ execution of the firm.

The __________ method involves categorizing each supplier's performance in specific areas defined by a list of relevant performance variables.