SCMN Test 2 Questions and Answers With Verified Solutions 2025
Supply Management - ✔✔supply management as the identification, acquisition, access, positioningand
management of resourcesand related capabilities the organization needs or potentially needs in the
attainment of its strategic objectives
Strategic Sourcing - ✔✔an institutional procurement process that continuously improves and re-
evaluates the purchasing activities of a company.
- want select suppliers that are best suited to create knowledge and value in customer-supplier interface
Procurement - ✔✔the purchase of merchandise or services at the optimum possible total cost in the
correct amount and quality.
Goal of Supply Management - ✔✔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
Supply Management Importance - ✔✔Ability to generate a sustainable advantage through lower costs,
higher quality, and better service from our global supply base of trading partners
Direct Materials - ✔✔used in production process and affects product value
Indirect material - ✔✔used outside production processes
Procurement Process - ✔✔- Identify material & service needs
- Evaluate supplier options
,- Select supplier
- Release orders and receive products
- Measure and manage performance
Why do you want to be safe during the procurement process? - ✔✔You do not want to haphazardly
evaluate options or make a decisions based on incomplete information
Goal of strategic sourcing - ✔✔We simply want to figure out what to buy from whom to achieve:
- Quality
- Timeliness
- Lower cost
How strategic sourcing differs from other sources? - ✔✔• Data-driving decision making
- Total cost of ownership
- Supplier performance analysis
• Focuses on improving supplier relationships
- Reduced number of suppliers and awards
•More communication, face-to-face meetings
-- how we can make the process better?
-- how we can make the product better?
-- how we can make our supply chain more efficient overall?
Reasoning to do or not to do strategic sourcing - ✔✔•Why
-- Price
-- Capacity
-- Capability
-- Cost reduction
-- Management focus
•Why Not
, -- Cost
-- Knowledge protection
-- Leverage
-- Lack of external knowledge
-- Core competency
Make or buy analysis - ✔✔the process of determining the most attractive alternative involves
comparing the costs avoided to costs of outsourcing
How has purchasing function evolved? - ✔✔it has shifter from a tactical process to a strategic one
What is important about choosing a purchasing process? - ✔✔Match the value and volume of the
purchase with the process you use
Outsourcing - ✔✔A decision by a corporation to turn over much of the responsibility for production to
independent suppliers.
- if done right it'll help you take advantage of exceptional supplier capability
How do you make the best purchases? - ✔✔- understand business requirements
- streamline purchasing process
- identify better sources of supply
Why is it important to evaluate suppliers - ✔✔•Monitor KPIs and take corrective action, to ensure value
is provided by suppliers
•Create visibility into process and performance across the entire supply management life cycle
What about suppliers needs to measured? - ✔✔Quality
- Meets specs
Cost
- Cost competitive
Supply Management - ✔✔supply management as the identification, acquisition, access, positioningand
management of resourcesand related capabilities the organization needs or potentially needs in the
attainment of its strategic objectives
Strategic Sourcing - ✔✔an institutional procurement process that continuously improves and re-
evaluates the purchasing activities of a company.
- want select suppliers that are best suited to create knowledge and value in customer-supplier interface
Procurement - ✔✔the purchase of merchandise or services at the optimum possible total cost in the
correct amount and quality.
Goal of Supply Management - ✔✔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
Supply Management Importance - ✔✔Ability to generate a sustainable advantage through lower costs,
higher quality, and better service from our global supply base of trading partners
Direct Materials - ✔✔used in production process and affects product value
Indirect material - ✔✔used outside production processes
Procurement Process - ✔✔- Identify material & service needs
- Evaluate supplier options
,- Select supplier
- Release orders and receive products
- Measure and manage performance
Why do you want to be safe during the procurement process? - ✔✔You do not want to haphazardly
evaluate options or make a decisions based on incomplete information
Goal of strategic sourcing - ✔✔We simply want to figure out what to buy from whom to achieve:
- Quality
- Timeliness
- Lower cost
How strategic sourcing differs from other sources? - ✔✔• Data-driving decision making
- Total cost of ownership
- Supplier performance analysis
• Focuses on improving supplier relationships
- Reduced number of suppliers and awards
•More communication, face-to-face meetings
-- how we can make the process better?
-- how we can make the product better?
-- how we can make our supply chain more efficient overall?
Reasoning to do or not to do strategic sourcing - ✔✔•Why
-- Price
-- Capacity
-- Capability
-- Cost reduction
-- Management focus
•Why Not
, -- Cost
-- Knowledge protection
-- Leverage
-- Lack of external knowledge
-- Core competency
Make or buy analysis - ✔✔the process of determining the most attractive alternative involves
comparing the costs avoided to costs of outsourcing
How has purchasing function evolved? - ✔✔it has shifter from a tactical process to a strategic one
What is important about choosing a purchasing process? - ✔✔Match the value and volume of the
purchase with the process you use
Outsourcing - ✔✔A decision by a corporation to turn over much of the responsibility for production to
independent suppliers.
- if done right it'll help you take advantage of exceptional supplier capability
How do you make the best purchases? - ✔✔- understand business requirements
- streamline purchasing process
- identify better sources of supply
Why is it important to evaluate suppliers - ✔✔•Monitor KPIs and take corrective action, to ensure value
is provided by suppliers
•Create visibility into process and performance across the entire supply management life cycle
What about suppliers needs to measured? - ✔✔Quality
- Meets specs
Cost
- Cost competitive
