procurement exam 1 questions with |\ |\ |\ |\ |\
answers
definition of procurement - CORRECT ANSWERS
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✔✔purchase of products or services at the right price,
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delivered at the right time, of the right quality, in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
right quantity, from the right source
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procurement process definition - CORRECT ANSWERS
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✔✔starts with identification of a need for a product or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
service, to the sourcing and appointment of service/
|\ |\ |\ |\ |\ |\ |\ |\
product provider and thereafter the management of those
|\ |\ |\ |\ |\ |\ |\
products or services
|\ |\ |\
Michael porters value chain - CORRECT ANSWERS
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✔✔support activités: (indirect)*procurement, firm
|\ |\ |\ |\
infrastructure, HR, technology |\ |\ |\
-procurement is a support activity because also includes
|\ |\ |\ |\ |\ |\ |\ |\
indirect
primary activités: (Direct) inbound logistics, operations,
|\ |\ |\ |\ |\ |\
outbound logistics, marketing/sales, service
|\ |\ |\
,procurement has a very direct impact on the bottom line - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔to double firms profits either 1)
|\ |\ |\ |\ |\ |\ |\ |\ |\
marketing and sales increase firms turnover by 100% or
|\ |\ |\ |\ |\ |\ |\ |\ |\
2) purchasing would have to dust the firms cost just 5%
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4 key elements of procurement and supply management
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(SPCS) - CORRECT ANSWERS ✔✔strategic orientation
|\ |\ |\ |\ |\
process driven approach |\ |\
cross functional groups
|\ |\
supply base management |\ |\
3 strategic orientation/engagement levels - CORRECT
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ANSWERS ✔✔business cycle strategy: long term vision
|\ |\ |\ |\ |\ |\ |\
mission goals and priorities |\ |\ |\
strategic procurement cycle: *our focus, procurements
|\ |\ |\ |\ |\ |\
mission and strategy implementation
|\ |\ |\
procurement sub processes: sourcing, managing supplier |\ |\ |\ |\ |\ |\
relationships, ordering cycle |\ |\
the strategic procurement cycle - CORRECT ANSWERS
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✔✔1. articulate vision mission and goals
|\ |\ |\ |\ |\
2. analyze situation (SWOT PESTLE 5 forces, stakeholder,
|\ |\ |\ |\ |\ |\ |\ |\
portfolio analysis, process mapping/analysis)
|\ |\ |\
, 3. develop procurement strategy
|\ |\ |\
4. implement
|\ |\
5. learn and improve
|\ |\ |\
process driven approach - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\
procurement process is a logical sequence of activities
|\ |\ |\ |\ |\ |\ |\ |\
connecting internal customers and external suppliers
|\ |\ |\ |\ |\
cross functional groups - CORRECT ANSWERS
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✔✔procurement interacts with many functions (planning, |\ |\ |\ |\ |\ |\
manufacturing, engineering, R&D, quality, finance |\ |\ |\ |\ |\
accounting, suppliers) |\
global challenges for procurement - CORRECT ANSWERS
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✔✔pressure on costs ( financial crises, commodity prices)
|\ |\ |\ |\ |\ |\ |\
uncertainty (increasing volatility, geopolitical instability)
|\ |\ |\ |\
complexity (greater power of BRIC, greater competition)
|\ |\ |\ |\ |\ |\
sustainability (scarce natural resources, greenhouse gas
|\ |\ |\ |\ |\ |\
emissions)
new business models (servitization, outsourcing)
|\ |\ |\ |\
answers
definition of procurement - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔purchase of products or services at the right price,
|\ |\ |\ |\ |\ |\ |\ |\ |\
delivered at the right time, of the right quality, in the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
right quantity, from the right source
|\ |\ |\ |\ |\
procurement process definition - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔starts with identification of a need for a product or
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
service, to the sourcing and appointment of service/
|\ |\ |\ |\ |\ |\ |\ |\
product provider and thereafter the management of those
|\ |\ |\ |\ |\ |\ |\
products or services
|\ |\ |\
Michael porters value chain - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔support activités: (indirect)*procurement, firm
|\ |\ |\ |\
infrastructure, HR, technology |\ |\ |\
-procurement is a support activity because also includes
|\ |\ |\ |\ |\ |\ |\ |\
indirect
primary activités: (Direct) inbound logistics, operations,
|\ |\ |\ |\ |\ |\
outbound logistics, marketing/sales, service
|\ |\ |\
,procurement has a very direct impact on the bottom line - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔to double firms profits either 1)
|\ |\ |\ |\ |\ |\ |\ |\ |\
marketing and sales increase firms turnover by 100% or
|\ |\ |\ |\ |\ |\ |\ |\ |\
2) purchasing would have to dust the firms cost just 5%
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
4 key elements of procurement and supply management
|\ |\ |\ |\ |\ |\ |\ |\
(SPCS) - CORRECT ANSWERS ✔✔strategic orientation
|\ |\ |\ |\ |\
process driven approach |\ |\
cross functional groups
|\ |\
supply base management |\ |\
3 strategic orientation/engagement levels - CORRECT
|\ |\ |\ |\ |\ |\
ANSWERS ✔✔business cycle strategy: long term vision
|\ |\ |\ |\ |\ |\ |\
mission goals and priorities |\ |\ |\
strategic procurement cycle: *our focus, procurements
|\ |\ |\ |\ |\ |\
mission and strategy implementation
|\ |\ |\
procurement sub processes: sourcing, managing supplier |\ |\ |\ |\ |\ |\
relationships, ordering cycle |\ |\
the strategic procurement cycle - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔1. articulate vision mission and goals
|\ |\ |\ |\ |\
2. analyze situation (SWOT PESTLE 5 forces, stakeholder,
|\ |\ |\ |\ |\ |\ |\ |\
portfolio analysis, process mapping/analysis)
|\ |\ |\
, 3. develop procurement strategy
|\ |\ |\
4. implement
|\ |\
5. learn and improve
|\ |\ |\
process driven approach - CORRECT ANSWERS ✔✔the
|\ |\ |\ |\ |\ |\ |\
procurement process is a logical sequence of activities
|\ |\ |\ |\ |\ |\ |\ |\
connecting internal customers and external suppliers
|\ |\ |\ |\ |\
cross functional groups - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔procurement interacts with many functions (planning, |\ |\ |\ |\ |\ |\
manufacturing, engineering, R&D, quality, finance |\ |\ |\ |\ |\
accounting, suppliers) |\
global challenges for procurement - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔pressure on costs ( financial crises, commodity prices)
|\ |\ |\ |\ |\ |\ |\
uncertainty (increasing volatility, geopolitical instability)
|\ |\ |\ |\
complexity (greater power of BRIC, greater competition)
|\ |\ |\ |\ |\ |\
sustainability (scarce natural resources, greenhouse gas
|\ |\ |\ |\ |\ |\
emissions)
new business models (servitization, outsourcing)
|\ |\ |\ |\
