SCMN 2150: MODULE 5-8 ROBERT STRAW AUBURN
QUESTIONS AND ANSWERS 2026
According to the reading the final step of strategic sourcing is to:
A. integrate suppliers into existing processes
B. negotiate with and select suppliers
C. analyze product categories used by the businesses and spending patterns
D. track performance metrics and optimize sourcing plan - Answers - D. track
performance metrics and optimize sourcing plan
According to the reading, the most popular response to COVID-19 will be which large
scale sourcing change?
A. expanding the supply base
B. increasing financing for key suppliers
C. maintaining processes as is
D. reducing inventory levels - Answers - A. expanding the supply base
According to the reading, strategic sourcing differs from conventional purchasing
because it places emphasis on _______ and optimizing the sourcing process through
ongoing market analysis and building relationships with suppliers.
A. purchase price
B. total cost of ownership
C. landed cost
D. total value minimization - Answers - B. total cost of ownership
According to the reading, the total value optimization measure of success for strategic
procurement focuses on:
A. reduction in purchase price
B. price, quality, durability, market savings
C. price, specifications, value stream
D. price, supplier relationships, sustainability - Answers - D. price, supplier relationships,
sustainability
What is procurement? - Answers - the process of acquiring goods and services from 3rd
party vendors as optimum total cost, correct time, quality, and quantity
What is procurement referred to as? - Answers - The Buy Process
What is The Buy Process - Answers - - the activities that bring needed resources into an
organization; initiates the flow of materials in the supply chain
, -encompasses foundation concepts, procurement process, and strategic sourcing
3 Characteristics of The Buy Process - Answers - 1. organizations are not vertically
integrated
2. the supply base is geographically dispersed
3. the buy process can provide competitive advantage
T/F Procurement varies among business needs - Answers - TRUE
What is supply management? - Answers - the identification, use, and management of
resources/capabilities the organization needs to meet its strategic objectives
Strong Procurement Benefits - Answers - - cost reduction
- improves order to delivery timelines
- shorter product development cycles
- access to supplier expertise and technology
- improved product quality
What is the goal of procurement? - Answers - strategically manage sources of supply to
reduce total cost of ownership
4 Types of Purchases in Procurement - Answers - - supply risk and profit impact
- bottleneck, strategic, non-critical, leverage
Benefits of The Buy Process - Answers - 1. reduction in cost per unit
2. control over consumption and volume
3. improved efficiency by standardization
5 Step Procurement Process - Answers - 1. identify needs and requirements
2. evaluate and find capable suppliers
3. select best supplier
4. initiate transactions
5. measure and manage performance (ensure value is provided)
What is holding procurement back? - Answers - - lack of KPIs and metrics to monitor
effectiveness of performance
- unwillingness of users to modify interactions with suppliers
- lack of executive support and commitment to new operating model
What are the goals of supply management? - Answers - cost control, risk management,
efficient allocation of resources, effective gathering of information for business decisions
What is strategic sourcing? - Answers - the institutional procurement process that
continuously re-evaluates and improves the purchasing activities of a company
QUESTIONS AND ANSWERS 2026
According to the reading the final step of strategic sourcing is to:
A. integrate suppliers into existing processes
B. negotiate with and select suppliers
C. analyze product categories used by the businesses and spending patterns
D. track performance metrics and optimize sourcing plan - Answers - D. track
performance metrics and optimize sourcing plan
According to the reading, the most popular response to COVID-19 will be which large
scale sourcing change?
A. expanding the supply base
B. increasing financing for key suppliers
C. maintaining processes as is
D. reducing inventory levels - Answers - A. expanding the supply base
According to the reading, strategic sourcing differs from conventional purchasing
because it places emphasis on _______ and optimizing the sourcing process through
ongoing market analysis and building relationships with suppliers.
A. purchase price
B. total cost of ownership
C. landed cost
D. total value minimization - Answers - B. total cost of ownership
According to the reading, the total value optimization measure of success for strategic
procurement focuses on:
A. reduction in purchase price
B. price, quality, durability, market savings
C. price, specifications, value stream
D. price, supplier relationships, sustainability - Answers - D. price, supplier relationships,
sustainability
What is procurement? - Answers - the process of acquiring goods and services from 3rd
party vendors as optimum total cost, correct time, quality, and quantity
What is procurement referred to as? - Answers - The Buy Process
What is The Buy Process - Answers - - the activities that bring needed resources into an
organization; initiates the flow of materials in the supply chain
, -encompasses foundation concepts, procurement process, and strategic sourcing
3 Characteristics of The Buy Process - Answers - 1. organizations are not vertically
integrated
2. the supply base is geographically dispersed
3. the buy process can provide competitive advantage
T/F Procurement varies among business needs - Answers - TRUE
What is supply management? - Answers - the identification, use, and management of
resources/capabilities the organization needs to meet its strategic objectives
Strong Procurement Benefits - Answers - - cost reduction
- improves order to delivery timelines
- shorter product development cycles
- access to supplier expertise and technology
- improved product quality
What is the goal of procurement? - Answers - strategically manage sources of supply to
reduce total cost of ownership
4 Types of Purchases in Procurement - Answers - - supply risk and profit impact
- bottleneck, strategic, non-critical, leverage
Benefits of The Buy Process - Answers - 1. reduction in cost per unit
2. control over consumption and volume
3. improved efficiency by standardization
5 Step Procurement Process - Answers - 1. identify needs and requirements
2. evaluate and find capable suppliers
3. select best supplier
4. initiate transactions
5. measure and manage performance (ensure value is provided)
What is holding procurement back? - Answers - - lack of KPIs and metrics to monitor
effectiveness of performance
- unwillingness of users to modify interactions with suppliers
- lack of executive support and commitment to new operating model
What are the goals of supply management? - Answers - cost control, risk management,
efficient allocation of resources, effective gathering of information for business decisions
What is strategic sourcing? - Answers - the institutional procurement process that
continuously re-evaluates and improves the purchasing activities of a company
