1|Page
SCMN 3730 EXAM 2 NEWEST ACTUAL EXAM
COMPLETE 70 QUESTIONS AND CORRECT DETAILED
ANSWERS||VERIFIED EXAM!!! (VERIFIED ANSWERS)
|ALREADY GRADED A+||NEWEST EXAM!!!
What is outsourcing? How can the concept be applied to a
purchasing savings strategy? - ANSWER--Outsourcing:
moving internal activities and decision responsibilities to
outside providers
>Financial improvement (same or lower costs, done
better)
What is a consortium and how does it add buying power to
a business? - ANSWER--Pooled buying power from
different organizations to create volume leverage; source
revenue (we have more power to get what we want
together)
-Operated by 3rd party
What are the key deliverables from the supplier selection
process? - ANSWER--Assumes commodity
research/savings strategy
-Selection focused on long term relationship categories
-Determination of supplier value added benefits
-Explored use of RFI, RFP, RFQ selected tools
,2|Page
-Establish need for quantified decision making
What conditions must exist for competitive bidding? What
conditions must exist for negotiating a contract? -
ANSWER--*Bidding*: volume, clear specifications,
competitive marketplace, adequate time, no preferred
supplier
-*Negotiation*: above criteria missing factors other than
price, supplier, involvement, supplier can't determine risks
and costs, product time lengthy
What are the fundamental qualifying criteria to evaluate
supplier credentials before making a selection? -
ANSWER-Technology, customer focus, organizational
compatibility, product quality, product delivery, contract
economy
What are the advantages and disadvantages of single
sourcing a contract? - ANSWER-time consuming, but find
the best supplier
What is an RFI; an RFP; an RFQ? What are the objectives
of each when determining supplier qualifications? -
ANSWER--*RFI*: (request for into) job posting, gather
general info about supplier
, 3|Page
>manage business risk, eliminate suppliers early by
finances
-*RFP*: submit proposal (supplier can differentiate
themselves)
>determine finalists
-*RFQ*: actionable pricing quote
>find winner (#1 conditionally on final negotiations)
What are potential sources of financial information when
identifying potential suppliers? - ANSWER-Annual reports,
IOK and IOQ, credit reports, trade and business journals,
supplier provided data
Why should a supplier's financial soundness / stability be
evaluated when making a selection? - ANSWER--manage
risk, eliminate marginal suppliers
-Be sure they are a good company and won't go out of
business
When developing an objective supplier
evaluation/selection tool, what attributes must it reflect? -
ANSWER-straight forward, reliable, comprehensive,
flexible, objective
SCMN 3730 EXAM 2 NEWEST ACTUAL EXAM
COMPLETE 70 QUESTIONS AND CORRECT DETAILED
ANSWERS||VERIFIED EXAM!!! (VERIFIED ANSWERS)
|ALREADY GRADED A+||NEWEST EXAM!!!
What is outsourcing? How can the concept be applied to a
purchasing savings strategy? - ANSWER--Outsourcing:
moving internal activities and decision responsibilities to
outside providers
>Financial improvement (same or lower costs, done
better)
What is a consortium and how does it add buying power to
a business? - ANSWER--Pooled buying power from
different organizations to create volume leverage; source
revenue (we have more power to get what we want
together)
-Operated by 3rd party
What are the key deliverables from the supplier selection
process? - ANSWER--Assumes commodity
research/savings strategy
-Selection focused on long term relationship categories
-Determination of supplier value added benefits
-Explored use of RFI, RFP, RFQ selected tools
,2|Page
-Establish need for quantified decision making
What conditions must exist for competitive bidding? What
conditions must exist for negotiating a contract? -
ANSWER--*Bidding*: volume, clear specifications,
competitive marketplace, adequate time, no preferred
supplier
-*Negotiation*: above criteria missing factors other than
price, supplier, involvement, supplier can't determine risks
and costs, product time lengthy
What are the fundamental qualifying criteria to evaluate
supplier credentials before making a selection? -
ANSWER-Technology, customer focus, organizational
compatibility, product quality, product delivery, contract
economy
What are the advantages and disadvantages of single
sourcing a contract? - ANSWER-time consuming, but find
the best supplier
What is an RFI; an RFP; an RFQ? What are the objectives
of each when determining supplier qualifications? -
ANSWER--*RFI*: (request for into) job posting, gather
general info about supplier
, 3|Page
>manage business risk, eliminate suppliers early by
finances
-*RFP*: submit proposal (supplier can differentiate
themselves)
>determine finalists
-*RFQ*: actionable pricing quote
>find winner (#1 conditionally on final negotiations)
What are potential sources of financial information when
identifying potential suppliers? - ANSWER-Annual reports,
IOK and IOQ, credit reports, trade and business journals,
supplier provided data
Why should a supplier's financial soundness / stability be
evaluated when making a selection? - ANSWER--manage
risk, eliminate marginal suppliers
-Be sure they are a good company and won't go out of
business
When developing an objective supplier
evaluation/selection tool, what attributes must it reflect? -
ANSWER-straight forward, reliable, comprehensive,
flexible, objective
