Deck 11: Relationship Management

Question 1

________ is the most critical step in the negotiation process.

A) Establishment of the team
B) Preparation
C) Location and agenda
D) Establishment of the issues

Answer 1

Preparation

Question 2

All of the following are required conditions for a win-win negotiation to be successful except ________.

A) both sides adopt a win-win mentality
B) both sides must approach the negotiations with an attitude of trust
C) both sides must understand the non-negotiable elements of the other's positions
D) both sides must have a vested interest in a successful outcome

Answer 2

both sides must understand the non-negotiable elements of the other's positions

Question 3

A(An) ________is recommended as an initial step in the process of determining the relationship intensity of the supply base.

A) supplier selection team
B) ABC analysis
C) make/buy analysis
D) transactional analysis

Answer 3

ABC analysis

Question 4

Negotiation is the formal communication process where two or more individuals meet to discuss an issue or issues and come to a mutually satisfactory agreement.

Question 5

________ is the formal communication process where two or more individuals meet to discuss an issue or issues and come to a mutually satisfactory agreement.

A) Specification
B) Request for quote
C) Strategy
D) Negotiation

Question 6

____________ relationships represent the majority of a company's SC relationships.

A) Transactional
B) Strategic
C) Business
D) Basic

Question 7

All of the following are benefits to the customer as a result of establishing a strategic partnership except__________.

A) lowering costs
B) improving quality
C) increasing order fulfillment times
D) enhancing responsiveness

Question 8

Customer, supplier, and service provider relationships should be classified based on their strategic relevance and importance.

Question 9

Trust in negotiations only exists when both sides agree that it does.

Question 10

All supply chain relationships merit the time and attention invested in developing strategic alliances.

Question 11

_______ are the building blocks of successful supply chain teams.

A) Contractual requirements
B) Alliances
C) Information systems
D) Goals

Question 12

A supplier relationship characterized by an arm's length approach regarding relationship intensity would be considered ____________.

A) strategic alliance
B) transactional
C) business alliance
D) operational alliance

Question 13

All of the following are characteristics of an effective negotiator except ________.

A) ability to listen
B) intolerance for ambiguity
C) persistence
D) willingness to study and practice

Question 14

Communication is the most critical step in the negotiation process.

Question 15

The relationship established with a strategic supplier includes all of the following characteristics except __________.

A) long-term
B) shared resources
C) joint planning
D) cost-driven

Question 16

All of the following are considered preferred procurement practices except _________.

A) timely payment
B) choosing the lowest cost supplier
C) training
D) clear specification

Question 17

One of the major causes of not achieving an alliance relationship development is __________.

A) insufficient customer size
B) insufficient management resources
C) disclosure by the supplier of the customer's proprietary information
D) the belief that an alliance partner is only as good as its last performance

Question 18

All of the following are phases of an alliance relationship development except ________.

A) internal planning
B) budget and resources required
C) daily management for execution and renewal
D) collaborative planning

Question 19

All of the following are benefits to the supplier as a result of establishing a strategic partnership except ________.

A) longer term contracts
B) investments in improvements
C) decreased production stability
D) larger volume contracts

Question 20

Supplier/customer relationships require varied levels of managerial attention and resource dedication however all relationships should be managed for ________ and fairness.

A) cost effectiveness
B) productivity
C) consistency
D) efficiency

Question 21

Fill in the Blank(s)
Customer, supplier, and service provider relationships should be classified based on their relevance and importance.

Question 22

A major reason why negotiations fail is that the negotiators fail to invest sufficient time in the planning process to effectively prepare for the negotiation.

Question 23

The fundamental tenet of win-win negotiating is that by working closely together, both the buyer and supplier can improve their competitiveness and profitability.

Question 24

Despite the allure of strategic alliances, great alliances are rare.

Question 25

One of the most important activities in relationship building is negotiation.

Question 26

In most negotiations, it is usually one side that obtains all of its desired objectives.

Question 27

Negotiation is most appropriately used when the costs of the negotiation can be viewed as an investment in future competitiveness.

Question 28

Fill in the Blank(s)
Most SC relationships do not merit the time and attention invested in alliances; however all relationships should be managed proactively and as part of an overall SC strategy.

Question 29

A major reason why negotiations fail is that the negotiators fail to establish clear objectives.

Question 30

Alliance building is a complex undertaking and no single practice, or group of practices, is capable of closing the cultural, emotional, physical, and strategic gaps that prevent synergistic collaboration.

Question 31

A major reason why negotiations fail is that the negotiators fail to consider their counterpart's needs.

Question 32

Contractual agreement has been described as the foundation for effective SCM because it promotes collaboration, risk taking, and both shared information and shared resources. .

Question 33

Many companies rely excessively on leverage to govern supply chain relationships.

Question 34

Generally, partnerships benefit the supplier by providing longer-term, larger-volume contracts, which increase production stability, lower costs, and help justify investments in product and process technologies.

Question 35

A major goal of a supply chain relationship is to become a "preferred" customer or supplier.

Question 36

Alliances are the building blocks of supply chain teams.

Question 37

Generally, partnerships benefit the customer by enhancing responsiveness, decreasing order fulfillment times, speeding innovation, and yielding more productive use of resources while typically holding costs steady and no improvement in product quality.

Question 38

Good supply chain relations begin with a company philosophy that says all supply chain members should be treated fairly and in a way that supports a mutually satisfying arrangement.

Question 39

The alliance development process occurs in three phases: internal planning, collaborative planning, and day-to-day management.

Question 40

Successful negotiations require the careful management of information, personal relationships, time, and power as the two sides of the negotiation work out a mutual, beneficial arrangement.

Question 41

Fill in the Blank(s)
In most negotiations, obtains all of its desired objectives.

Question 42

Fill in the Blank(s)
Because both the world and competitive imperatives change, SC managers must continually evaluate the alliance's and look for renewal opportunities.

Question 43

Fill in the Blank(s)
fail to succeed because of one or more of the following:
• An unwillingness among managers to share sensitive, proprietary information
• The belief that an alliance partner is only as good as its last performance
• The failure to consider the realities of the partner's situation

Question 44

Fill in the Blank(s)
Negotiation experts concur that is the most critical step in the negotiation process.

Question 45

Fill in the Blank(s)
Outstanding alliance performance requires careful and execution.

Question 46

Fill in the Blank(s)
Though price, , and service are the topics most frequently discussed in negotiations, any issue that affects the performance of the relationship can be negotiated.

Question 47

Fill in the Blank(s)
relationships do not receive much managerial time.

Question 48

Fill in the Blank(s)
As a rule, SC partnerships benefit the customer by lowering , improving product quality, enhancing responsiveness, decreasing order fulfillment times, speeding innovation, and yielding more productive use of resources.

Question 49

Fill in the Blank(s)
Competitive pressures often lead to behavior that undermines .

Question 50

Fill in the Blank(s)
Outstanding alliance performance requires careful and execution.

Question 51

Fill in the Blank(s)
Suppliers benefit from longer-term, larger-volume contracts, which increase production , lower costs, and help justify investments in product and process technologies.

Question 52

Fill in the Blank(s)
or a sense of independence impedes the further development of many alliances.

Question 53

Fill in the Blank(s)
The fundamental principle driving SC integration is that closer, more collaborative alliances can yield mutually beneficial advantage to the chain participants.

Question 54

Fill in the Blank(s)
Successful negotiations require the careful management of , personal relationships, time, and power as the two sides of the negotiation work out a mutually beneficial arrangement.

Question 55

Fill in the Blank(s)
relationships are closely scrutinized and carefully managed. Top management spends time and money to make sure these relationships are built on a solid foundation and for the long haul.

Question 56

Fill in the Blank(s)
The key for negotiation success is for to improve their position, and their competitiveness, through the negotiation process.

Question 57

Fill in the Blank(s)
Good SC relations begin with a company philosophy that says SC members should be treated fairly and in a way that supports a mutually satisfying arrangement.