SCMN 2150 EXAM 2 ROBERT STRAW QUESTIONS
AND ANSWERS 2026
Procurement - Answers - -The purchase of merchandise or services at the optimal total
cost, the correct quantity, the correct time, and the correct quality
-Day to day
Strategic Sourcing - Answers - -The institutional process that continuously re-evaluates
and improves the purchasing activities of a company
-Focus on continuous improvement of procurement
-Emphasizes a more collaborative and company wide focus on the sourcing process
-Shift from completing activities in-house to outsourcing them to suppliers
Difference between traditional purchasing and strategic sourcing - Answers - Traditional
purchasing focuses on negotiating with suppliers and ensuring that the right price was
being charged for the product, while strategic sourcing has improved supplier selection,
cuts costs, and gives visibility in pricing
Procurement Process Step 1: Identify needed products and services - Answers - -
Quality, volume, and timing
-This step can be initiated by several different triggers including market forecasts,
customer orders and automated reorder systems
Procurement Process Step 2: Find capable suppliers - Answers - -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
Procurement Process 3: Select the best suppliers - Answers - -Make head-to-head
comparisons
-Talk with other customers
-Negotiate contracts
-Reach formal agreement
Procurement Process Step 4: Initiate Transactions - Answers - -Complete the order
process
-Communicate requirements
Procurement Process Step 5: Evaluate Performance - Answers - -Track progress
-Cost, product quality, and timeliness
Goals of Supply Management - Answers - The identification, use, and management of
resources/capabilities the organization needs to meet its strategic objectives
, Quadrant Analysis - Answers - -Scatters the data that you want to analyze or measure
into four quadrants
-Analyses gaps between expectations and actual performance
-Critical, Strategic, Tactical and Leverage
Importance of Supplier Performance - Answers - Ensure that all suppliers provide the
necessary level of service while helping companies achieve their objectives in ways that
align with their goals
Fill Rate - Answers - -Total Quantity Received / Total Quantity Ordered
-The percentage of customer orders a company can fulfill without running out of
inventory to fill customer orders
Defect Rate - Answers - -Total Quantity Defective / Total Quantity Received
-Measurement of how many units of production are defective, or unusable, out of a
specific number of units
On Time - Answers - -Orders Received On Time / Total Orders
-Measures a supplier's ability to fulfill its delivery promises
Perfect Order - Answers - Order arrives on time, without defects, and with perfect
documentation at the right location with correct quantities of all SKUs ordered
Supplier Scorecard - Answers - Monitor performance across multiple metrics over
extended period
-Choose categories
-Weight the importance
-Evaluate performance results
-Multiply results by weight
-Tally score on periodic basis
Categorize suppliers based on their scores
Offer additional business to best performers
Strategic Sourcing Step 1 - Answers - Analyze product categories used by the business,
spending patterns, and the processes and departments involved
Strategic Sourcing Step 2 - Answers - Develop a sourcing strategy based on business
goals
Strategic Sourcing Step 3 - Answers - Analyze the supplier market and create a supplier
portfolio
Strategic Sourcing Step 4 - Answers - Define request for proposal criteria and templates
Strategic Sourcing Step 5 - Answers - Negotiate with and select suppliers
AND ANSWERS 2026
Procurement - Answers - -The purchase of merchandise or services at the optimal total
cost, the correct quantity, the correct time, and the correct quality
-Day to day
Strategic Sourcing - Answers - -The institutional process that continuously re-evaluates
and improves the purchasing activities of a company
-Focus on continuous improvement of procurement
-Emphasizes a more collaborative and company wide focus on the sourcing process
-Shift from completing activities in-house to outsourcing them to suppliers
Difference between traditional purchasing and strategic sourcing - Answers - Traditional
purchasing focuses on negotiating with suppliers and ensuring that the right price was
being charged for the product, while strategic sourcing has improved supplier selection,
cuts costs, and gives visibility in pricing
Procurement Process Step 1: Identify needed products and services - Answers - -
Quality, volume, and timing
-This step can be initiated by several different triggers including market forecasts,
customer orders and automated reorder systems
Procurement Process Step 2: Find capable suppliers - Answers - -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
Procurement Process 3: Select the best suppliers - Answers - -Make head-to-head
comparisons
-Talk with other customers
-Negotiate contracts
-Reach formal agreement
Procurement Process Step 4: Initiate Transactions - Answers - -Complete the order
process
-Communicate requirements
Procurement Process Step 5: Evaluate Performance - Answers - -Track progress
-Cost, product quality, and timeliness
Goals of Supply Management - Answers - The identification, use, and management of
resources/capabilities the organization needs to meet its strategic objectives
, Quadrant Analysis - Answers - -Scatters the data that you want to analyze or measure
into four quadrants
-Analyses gaps between expectations and actual performance
-Critical, Strategic, Tactical and Leverage
Importance of Supplier Performance - Answers - Ensure that all suppliers provide the
necessary level of service while helping companies achieve their objectives in ways that
align with their goals
Fill Rate - Answers - -Total Quantity Received / Total Quantity Ordered
-The percentage of customer orders a company can fulfill without running out of
inventory to fill customer orders
Defect Rate - Answers - -Total Quantity Defective / Total Quantity Received
-Measurement of how many units of production are defective, or unusable, out of a
specific number of units
On Time - Answers - -Orders Received On Time / Total Orders
-Measures a supplier's ability to fulfill its delivery promises
Perfect Order - Answers - Order arrives on time, without defects, and with perfect
documentation at the right location with correct quantities of all SKUs ordered
Supplier Scorecard - Answers - Monitor performance across multiple metrics over
extended period
-Choose categories
-Weight the importance
-Evaluate performance results
-Multiply results by weight
-Tally score on periodic basis
Categorize suppliers based on their scores
Offer additional business to best performers
Strategic Sourcing Step 1 - Answers - Analyze product categories used by the business,
spending patterns, and the processes and departments involved
Strategic Sourcing Step 2 - Answers - Develop a sourcing strategy based on business
goals
Strategic Sourcing Step 3 - Answers - Analyze the supplier market and create a supplier
portfolio
Strategic Sourcing Step 4 - Answers - Define request for proposal criteria and templates
Strategic Sourcing Step 5 - Answers - Negotiate with and select suppliers
