SCM 3301 EXAM 2 (MILLER)
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Strategic Sourcing Process - ANS Identifying ways to improve long-term business
performance by better understanding sourcing needs, developing long-term sourcing strategies,
selecting suppliers, and managing the supply base.
Spend Analysis - ANS The application of quantitative techniques to purchasing data in an
effort to better understand spending patterns and identify opportunities for improvement.
Pareto chart - ANS highlights the most important causes of the problem, highest to lowest
left to right.
Internal Category profile - ANS Understanding all aspects of a particular sourcing category
that could ultimately have an impact on the sourcing strategy within our organization.
External Industry Analysis - ANS Profiling the major forces and trends that are impacting an
industry, including pricing, competition, regulatory forces, substitution, technology changes, and
supply/demands trends.
Maverick Spending - ANS Spending without purchasing process from suppliers to save cost
@2026 ALLRIGHTS RESERVED 1
, The Make-or-Buy Decision - ANS A high-level, strategic decision regarding which products or
services will be provided internally (Make) and which will be provided by external supply chain
partners (Buy)
Insourcing - ANS The use of resources within the firm to provide products or services. "Do it
Myself" [Insourcing the Supply Chain is "Vertical integration"]
Outsourcing - ANS The use of supply chain partners to provide products or services. "Pay
someone to Do it"
Off-shoring - ANS Location of an Insourced or outsourced Firm in a foreign country
Near shoring - ANS Offshoring in an adjacent country
On-shoring - ANS Location of an insourced or Outsourced Firm in the firm's country
Kraljic's Portfolio analysis - ANS A structured approach used by decision makers to develop a
sourcing strategy for a product or service, based on the value potential and the relative
complexity or risk represented by a sourcing opportunity.
The Routine Quadrant: Office supply - ANS Readily available products or services
representing a relatively small portion of a firm's purchasing expenditures.
The Leverage Quadrant: Sub Supply - ANS Standardized and readily available products or
services representing a significant portion of spend.
@2026 ALLRIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Strategic Sourcing Process - ANS Identifying ways to improve long-term business
performance by better understanding sourcing needs, developing long-term sourcing strategies,
selecting suppliers, and managing the supply base.
Spend Analysis - ANS The application of quantitative techniques to purchasing data in an
effort to better understand spending patterns and identify opportunities for improvement.
Pareto chart - ANS highlights the most important causes of the problem, highest to lowest
left to right.
Internal Category profile - ANS Understanding all aspects of a particular sourcing category
that could ultimately have an impact on the sourcing strategy within our organization.
External Industry Analysis - ANS Profiling the major forces and trends that are impacting an
industry, including pricing, competition, regulatory forces, substitution, technology changes, and
supply/demands trends.
Maverick Spending - ANS Spending without purchasing process from suppliers to save cost
@2026 ALLRIGHTS RESERVED 1
, The Make-or-Buy Decision - ANS A high-level, strategic decision regarding which products or
services will be provided internally (Make) and which will be provided by external supply chain
partners (Buy)
Insourcing - ANS The use of resources within the firm to provide products or services. "Do it
Myself" [Insourcing the Supply Chain is "Vertical integration"]
Outsourcing - ANS The use of supply chain partners to provide products or services. "Pay
someone to Do it"
Off-shoring - ANS Location of an Insourced or outsourced Firm in a foreign country
Near shoring - ANS Offshoring in an adjacent country
On-shoring - ANS Location of an insourced or Outsourced Firm in the firm's country
Kraljic's Portfolio analysis - ANS A structured approach used by decision makers to develop a
sourcing strategy for a product or service, based on the value potential and the relative
complexity or risk represented by a sourcing opportunity.
The Routine Quadrant: Office supply - ANS Readily available products or services
representing a relatively small portion of a firm's purchasing expenditures.
The Leverage Quadrant: Sub Supply - ANS Standardized and readily available products or
services representing a significant portion of spend.
@2026 ALLRIGHTS RESERVED 2
