SCMN 2150 Exam 2 QUESTIONS & ANSWERS
| A+ GRADED 100% VERIFIED
• Procurement . Answer: - The purchase of merchandise or services at
the optimal total cost, the correct quantity, the correct time, and the
correct quality
Importance
- Lack of vertical integration - Ford example
- More geographically diverse supply base
Competitive advantage
- Lower costs
- Higher quality products
- Better service
Goal
- Reduce total cost of ownership
- What we need, when we need it
• Strategic Sourcing . Answer: - The institutional process that
continuously re-evaluates and improves the purchasing activities of a
company
- Focus on continuous improvement of procurement
• Traditional Purchasing vs. Strategic Sourcing . Answer:
• 5 Steps of the Procurement Process . Answer: 1. Identify needed
products and services:
- Quality, volume, and timing
- This step can be initiated by several different triggers including market
forecasts, customer orders and automated reorder systems
2. Find capable suppliers:
- Formally define what is desired for a supplier for your organization
, - Create a list of options
- Rate candidates based on factors such as capability, capacity, and past
performance
3. Select the best suppliers:
- Make head-to-head comparisons
- Talk with other customers
- Negotiate contracts
- Reach formal agreement
4. Initiate transactions:
- Complete the order process
- Communicate requirements
5. Evaluate performance:
- Track progress
- Cost, product quality, and timeliness
• Supply Management . Answer: The identification, use, and
management of resources/capabilities the organization needs to meet its
strategic objectives
• Quadrant Analysis . Answer:
• Evaluating Supplier Performance . Answer: To offer additional
business to best performers
• 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
| A+ GRADED 100% VERIFIED
• Procurement . Answer: - The purchase of merchandise or services at
the optimal total cost, the correct quantity, the correct time, and the
correct quality
Importance
- Lack of vertical integration - Ford example
- More geographically diverse supply base
Competitive advantage
- Lower costs
- Higher quality products
- Better service
Goal
- Reduce total cost of ownership
- What we need, when we need it
• Strategic Sourcing . Answer: - The institutional process that
continuously re-evaluates and improves the purchasing activities of a
company
- Focus on continuous improvement of procurement
• Traditional Purchasing vs. Strategic Sourcing . Answer:
• 5 Steps of the Procurement Process . Answer: 1. Identify needed
products and services:
- Quality, volume, and timing
- This step can be initiated by several different triggers including market
forecasts, customer orders and automated reorder systems
2. Find capable suppliers:
- Formally define what is desired for a supplier for your organization
, - Create a list of options
- Rate candidates based on factors such as capability, capacity, and past
performance
3. Select the best suppliers:
- Make head-to-head comparisons
- Talk with other customers
- Negotiate contracts
- Reach formal agreement
4. Initiate transactions:
- Complete the order process
- Communicate requirements
5. Evaluate performance:
- Track progress
- Cost, product quality, and timeliness
• Supply Management . Answer: The identification, use, and
management of resources/capabilities the organization needs to meet its
strategic objectives
• Quadrant Analysis . Answer:
• Evaluating Supplier Performance . Answer: To offer additional
business to best performers
• 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
