SCMN 2150 Exam 2 Practice QUESTIONS
& ANSWERS | A+ GRADED 100% VERIFIED
• What is strategic sourcing? Answer: an institutional procurement
process that continuously improves and re-evaluates the purchasing
activities of a company
• What is the difference between traditional purchasing and strategic
sourcing? Answer: strategic sources seeks for continuous improvement
• What are the steps in the procurement process and why is it important
to follow them? Answer: 1) Identify material & service needs
2) Evaluate supplier options
3) Select supplier
4) Release orders and receive products
5) Measure and manage performance
It is important to follow these steps because you do not want to make a
decision based on incomplete information
• What are the goals of supply chain management and why is it
important? Answer: To buy products and services....
- At the right price
- From the right source
- At the right specification
- In the right quantity
- For delivery at the right time
- To the right internal customer
It is important because it wants to generate a sustainable advantage
through lower costs, higher quality, and better service from our global
supply base of trading partners
, • What is a quadrant analysis and why is it important? Answer: A
quadrant analysis is a visual tool that categorizes data or elements into
four quadrants based on two criteria, helping to prioritize and make
decisions from either the products or services. It is important for
simplifying complex data, identifying trends, and making informed
choices in various fields.
• Why is it important to evaluate supplier performance? Answer: - To
monitor KPIs (key performance indicators) and take corrective action, to
ensure value is provided by suppliers
- To create visibility into process and performance across the entire
supply management lifecycle
• Fill Rate Answer: Total Quantity Received / Total Quantity Ordered
• Defect Rate Answer: Total Quantity Defective / Total Quantity
Received
• On Time Answer: Orders Received On Time / Total Orders
• Perfect Purchase Order Percent Answer: Order arrives on time, without
defects, and with perfect documentation at the right location with correct
quantities of all SKUs (stock keeping unit) ordered
• What is a supplier scorecard and how are they created and utilized?
Answer: - Monitor performance across multiple metrics over extended
time period
- Categorize suppliers based on their scores
- Offer additional business to best performers
• What are the 7 steps of strategic sourcing? Answer: 1. Analyze product
categories used by the business, spending patterns, and the processes and
departments involved.
2. Develop a sourcing strategy based on business goals.
3. Analyze the supplier market and create a supplier portfolio.
& ANSWERS | A+ GRADED 100% VERIFIED
• What is strategic sourcing? Answer: an institutional procurement
process that continuously improves and re-evaluates the purchasing
activities of a company
• What is the difference between traditional purchasing and strategic
sourcing? Answer: strategic sources seeks for continuous improvement
• What are the steps in the procurement process and why is it important
to follow them? Answer: 1) Identify material & service needs
2) Evaluate supplier options
3) Select supplier
4) Release orders and receive products
5) Measure and manage performance
It is important to follow these steps because you do not want to make a
decision based on incomplete information
• What are the goals of supply chain management and why is it
important? Answer: To buy products and services....
- At the right price
- From the right source
- At the right specification
- In the right quantity
- For delivery at the right time
- To the right internal customer
It is important because it wants to generate a sustainable advantage
through lower costs, higher quality, and better service from our global
supply base of trading partners
, • What is a quadrant analysis and why is it important? Answer: A
quadrant analysis is a visual tool that categorizes data or elements into
four quadrants based on two criteria, helping to prioritize and make
decisions from either the products or services. It is important for
simplifying complex data, identifying trends, and making informed
choices in various fields.
• Why is it important to evaluate supplier performance? Answer: - To
monitor KPIs (key performance indicators) and take corrective action, to
ensure value is provided by suppliers
- To create visibility into process and performance across the entire
supply management lifecycle
• Fill Rate Answer: Total Quantity Received / Total Quantity Ordered
• Defect Rate Answer: Total Quantity Defective / Total Quantity
Received
• On Time Answer: Orders Received On Time / Total Orders
• Perfect Purchase Order Percent Answer: Order arrives on time, without
defects, and with perfect documentation at the right location with correct
quantities of all SKUs (stock keeping unit) ordered
• What is a supplier scorecard and how are they created and utilized?
Answer: - Monitor performance across multiple metrics over extended
time period
- Categorize suppliers based on their scores
- Offer additional business to best performers
• What are the 7 steps of strategic sourcing? Answer: 1. Analyze product
categories used by the business, spending patterns, and the processes and
departments involved.
2. Develop a sourcing strategy based on business goals.
3. Analyze the supplier market and create a supplier portfolio.
