Exam 7: Purchasing Procedures, E-Purchasing, and Systems Contracting

Systems contracting is a purchasing management technique that seeks __________ of an item from the time a need is recognized to the time that need is fulfilled.

The seven (7) steps to effectively implement e-procurement are: Start with non-critical items.ring all internal stakeholders on board with your new procurement process to establish internal customer behavior.Streamline, map, test, troubleshoot, and improve the process before expanding it to external suppliers. Work with a favored supplier to test the system.Leverage your system once it's running. Exploit your full purchasing power by using reverse auctions.ggregate buyers within your organization to increase your purchasing power and gain better pricing.Use an incremental approach to expand your system.Once the bumps have been ironed out of the system, move on to the manufacturing operations.

The _____________ process requires the use of a negotiated agreement between buyers and sellers.

Recognizing that purchase price is but one element of the total cost picture, the scope of ____________ goes far beyond the purchase price for any given item.

The Internet has revolutionized ___________.

To maintain trust and cooperation between buying and selling firms, reverse auctions should be used carefully.

______ purchasing is a term used for purchasing office equipment, furniture, office supplies, forms, computers, travel services, maintenance services, light bulbs, janitorial supplies, and many other relatively low-cost items.

_________________ is a stockless inventory method for ordering and stocking MRO and related items. The use of ________________ will aid the firm in reducing ordering and inventory costs.

In most cases, large multidivisional firms like IBM, Ford, and General Motors usually establish a set of ___________ based on the overall corporate missions.

nother problem (with indirect purchasing) is the tendency for employees to intermittently buy indirect items "off contract." This practice is referred to as ________________.

Unlike the barcode-based tracking system, a radio frequency identification system offers a __________________________________ .

The way in which the process of developing and implementing an EDI system is managed can greatly influence the success of implementation. Four key areas are:

__________ professionals are primarily charged with the responsibility for controlling the total cost of ownership (TCO).

Requests for quotes (RFQs) are more traumatic for maintaining healthy relationships between buying and selling firms.

The __________ has become an indispensable part of modern management effectiveness.

The commercial purchasing literature on e-procurement has suggested ____________________ for businesses and organizations can be realized by migrating to electronic procurement systems for all of their purchasing requirements.

There are many benefits to using EDI. For larger firms, the main benefit(s) is (are) generally ________________

y definition, the price in ____________ is driven down by __________, so if only limited competition exists, then the price will not __________ enough to save the buyer a substantial amount of money.

ompanies must ask themselves many questions before implementing an RFID system. Some such questions follow, with one exception. Which is the exception?

Introducing new technologies into organizations will almost always result in some combination of social, technical, psychological, and structural changes. When managers or employers resist the logical arguments presented in support of EDI, they may not be resisting the technical aspects of the proposed change as much as the perceived _______________________ ramifications.