Sourcing and Purchasing Exam 2 Study Guide 2023
Category
Refers to a specific family of products or services that are used in delivering value to the
end customer.
Integrative Strategy Development four levels:
1. Corporate strategies
2. Business unit strategies
3. Supply management strategies
4. Category / sourcing strategies
Integrative
The strategy is drafted by (or has significant input from) those people responsible for
implementation. Companies that are successful in deploying supply chain strategies do
so by this process.
Category manager three jobs:
1. Engage internal stakeholders and fully understand their requirement for products and
services.
2. Scan the marketplace to understand market trends, cost driver, and risks.
3. Build a strategy that aligns stakeholder requirements with the realities of the supply
market.
Spend analysis
Annual review of a firm's entire set of purchases.
Strategic Sourcing five step process:
1. Build the team
2. Market research
3. Strategy Development
4. Contract negotiation
5. Supplier relationship management
Porter's Five Forces
1. Threat of new entrants
2. Supplier bargaining power
3. Market internal competition
4. Buyer bargaining power
5. Pressure from substitutes
SWOT analysis?
Strengths, weaknesses, opportunities and threats.
Portfolio Analysis
Tool used to structure and segment the supply base and is used as a means of
classifying suppliers into one of four types:
1. Critical category
2. Routine category
3. Leverage category
4. Bottleneck category
Suppliers are classified into what 4 categories?
1. Core
2. Develop
Category
Refers to a specific family of products or services that are used in delivering value to the
end customer.
Integrative Strategy Development four levels:
1. Corporate strategies
2. Business unit strategies
3. Supply management strategies
4. Category / sourcing strategies
Integrative
The strategy is drafted by (or has significant input from) those people responsible for
implementation. Companies that are successful in deploying supply chain strategies do
so by this process.
Category manager three jobs:
1. Engage internal stakeholders and fully understand their requirement for products and
services.
2. Scan the marketplace to understand market trends, cost driver, and risks.
3. Build a strategy that aligns stakeholder requirements with the realities of the supply
market.
Spend analysis
Annual review of a firm's entire set of purchases.
Strategic Sourcing five step process:
1. Build the team
2. Market research
3. Strategy Development
4. Contract negotiation
5. Supplier relationship management
Porter's Five Forces
1. Threat of new entrants
2. Supplier bargaining power
3. Market internal competition
4. Buyer bargaining power
5. Pressure from substitutes
SWOT analysis?
Strengths, weaknesses, opportunities and threats.
Portfolio Analysis
Tool used to structure and segment the supply base and is used as a means of
classifying suppliers into one of four types:
1. Critical category
2. Routine category
3. Leverage category
4. Bottleneck category
Suppliers are classified into what 4 categories?
1. Core
2. Develop
