SCMN 3730 Exam 1
Study online at https://quizlet.com/_841ch8
1. What are the fea- 1. closer relationships
tures of the new 2. performing due diligence on suppliers before awarding long-term con-
model of progressive tracts
purchasing? 3. conducting worldwide searches for best sources of supply
4. inviting key suppliers to participate in produce & process development
2. What is meant by di- items provided by suppliers & used directly during production or service
rect materials? delivery
ex: raw materials, components, & sub assemblies
3. What is meant by the sum of all purchased goods & services that are not a direct, identifiable
indirect materials & part of products or services delivered to the customer
services?
ex: transportation, 3PL logistics services, office supplies
4. What is the aver- 55%
age percentage of
purchases to sales
in the manufacturing
sector?
5. Explain the relation- - availability of low-cost alternatives has led to shifts toward outsourcing &
ship between out- offshoring activities
sourcing & core com- - must now evaluate the economics of re-shoring & near-shoring
petencies
6. What are the 4 pillars - human resources
of purchasing & sup- - organizational design
ply chain manage- - information technology
ment? - measurement
7.
, SCMN 3730 Exam 1
Study online at https://quizlet.com/_841ch8
Definition of supply involves proactively managing the two-way movement & coordination of
management goods, services, information & funds from raw material through end user
8. Why is purchasing - increasing value & savings
important? - building relationships & driving innovation
- improving quality & reputation
- reducing time-to-market
- managing supplier risk
- generating economic impact
- contributing to competitive advantage
9. What is maverick when failing to respond to the needs of internal customers will diminish
buying? the confidence these users have in purchasing, so they then try to negotiate
contracts themselves
10. What are the steps in 1. purchase order creation
the purchasing cycle? 2. budget check & RFP
3. vendor qualification & selection
4. negotiation & PO dispatch
5. delivery & quality check
6. purchase order matching & closure
11. What are the circum- when buyers prefer a purchase order for initial purchases or a one-time
stances when a spot purchase
buy would be appro-
priate?
12. What does it take to - receive the first opportunity for new business
become a preferred - has demonstrated its performance capabilities through previous purchase
supplier? contracts
13. Explain when it is ap- - usually open for 1 year
propriate to issue a - used for repeated purchases of item of family of items
Study online at https://quizlet.com/_841ch8
1. What are the fea- 1. closer relationships
tures of the new 2. performing due diligence on suppliers before awarding long-term con-
model of progressive tracts
purchasing? 3. conducting worldwide searches for best sources of supply
4. inviting key suppliers to participate in produce & process development
2. What is meant by di- items provided by suppliers & used directly during production or service
rect materials? delivery
ex: raw materials, components, & sub assemblies
3. What is meant by the sum of all purchased goods & services that are not a direct, identifiable
indirect materials & part of products or services delivered to the customer
services?
ex: transportation, 3PL logistics services, office supplies
4. What is the aver- 55%
age percentage of
purchases to sales
in the manufacturing
sector?
5. Explain the relation- - availability of low-cost alternatives has led to shifts toward outsourcing &
ship between out- offshoring activities
sourcing & core com- - must now evaluate the economics of re-shoring & near-shoring
petencies
6. What are the 4 pillars - human resources
of purchasing & sup- - organizational design
ply chain manage- - information technology
ment? - measurement
7.
, SCMN 3730 Exam 1
Study online at https://quizlet.com/_841ch8
Definition of supply involves proactively managing the two-way movement & coordination of
management goods, services, information & funds from raw material through end user
8. Why is purchasing - increasing value & savings
important? - building relationships & driving innovation
- improving quality & reputation
- reducing time-to-market
- managing supplier risk
- generating economic impact
- contributing to competitive advantage
9. What is maverick when failing to respond to the needs of internal customers will diminish
buying? the confidence these users have in purchasing, so they then try to negotiate
contracts themselves
10. What are the steps in 1. purchase order creation
the purchasing cycle? 2. budget check & RFP
3. vendor qualification & selection
4. negotiation & PO dispatch
5. delivery & quality check
6. purchase order matching & closure
11. What are the circum- when buyers prefer a purchase order for initial purchases or a one-time
stances when a spot purchase
buy would be appro-
priate?
12. What does it take to - receive the first opportunity for new business
become a preferred - has demonstrated its performance capabilities through previous purchase
supplier? contracts
13. Explain when it is ap- - usually open for 1 year
propriate to issue a - used for repeated purchases of item of family of items
