SCMN 2150 Exam 2 Robert Straw |54 Questions and
Answers
What is procurement? - -The purchase of merchandise or services at the optimum possible
total cost in the correct amount and quality
-What is strategic sourcing? - -an institutional procurement process that continuously
improves and re-evaluates the purchasing activities of a company
-What is the difference between traditional purchasing and strategic sourcing? - -strategic
sources seeks for continuous improvement
-What are the steps in the procurement process and why is it important to follow them? - -
1) Identify material & service needs
2) Evaluate supplier options
3) Select supplier
4) Release orders and receive products
5) Measure and manage performance
It is important to follow these steps because you do not want to make a decision based on
incomplete information
-What are the goals of supply chain management and why is it important? - -To 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
It is important because it wants to generate a sustainable advantage through lower costs,
higher quality, and better service from our global supply base of trading partners
-What is a quadrant analysis and why is it important? - -A quadrant analysis is a visual tool
that categorizes data or elements into four quadrants based on two criteria, helping to
prioritize and make decisions from either the products or services. It is important for
simplifying complex data, identifying trends, and making informed choices in various fields.
-Why is it important to evaluate supplier performance? - -- To monitor KPIs (key
performance indicators) and take corrective action, to ensure value is provided by
suppliers
- To create visibility into process and performance across the entire supply management
lifecycle
, -Fill Rate - -Total Quantity Received / Total Quantity Ordered
-Defect Rate - -Total Quantity Defective / Total Quantity Received
-On Time - -Orders Received On Time / Total Orders
-Perfect Purchase Order Percent - -Order arrives on time, without defects, and with
perfect documentation at the right location with correct quantities of all SKUs (stock
keeping unit) ordered
-What is a supplier scorecard and how are they created and utilized? - -- Monitor
performance across multiple metrics over extended time period
- Categorize suppliers based on their scores
- Offer additional business to best performers
-What are the 7 steps of strategic sourcing? - -1. Analyze product categories used by the
business, spending patterns, and the processes and departments involved.
2. Develop a sourcing strategy based on business goals.
3. Analyze the supplier market and create a supplier portfolio.
4. Define request for proposal criteria and templates.
5. Negotiate with and select suppliers.
6. Integrate suppliers into existing processes, onboarding any new vendors or outsourcing
providers.
7. Track performance metrics and optimize the sourcing plan, as needed
-What is holding procurement back? - -1. Lack of KPIs and metrics to monitor the
effectiveness of the performance tomeet the goals of the relationship. If KPIs do exist, they
are generally focused on safety and adherence to payment terms with a very limited view,
if any, on performance and productivity
2. Unwillingness for end-users / operations groups to modify day to day interactions with
suppliers
3. Lack of executive support and commitment to the new operating model developed
through the contracting process
-What types of large-scale changes are companies planning in the coming out of the
pandemic? - -1. Expand their supply base
2. Shrink their global supply chain and rely on local suppliers
3. Increase inventory levels
4. Increase financing for key suppliers
-What is Production - -the process by which inputs are combined, transformed,and turned
into outputs. May involve products and/or services
-What is manufacturing? - -to transform materials via assembly, fabrication, conversion
processes into a finished product, especially by means of a large-scale industrial operation
Answers
What is procurement? - -The purchase of merchandise or services at the optimum possible
total cost in the correct amount and quality
-What is strategic sourcing? - -an institutional procurement process that continuously
improves and re-evaluates the purchasing activities of a company
-What is the difference between traditional purchasing and strategic sourcing? - -strategic
sources seeks for continuous improvement
-What are the steps in the procurement process and why is it important to follow them? - -
1) Identify material & service needs
2) Evaluate supplier options
3) Select supplier
4) Release orders and receive products
5) Measure and manage performance
It is important to follow these steps because you do not want to make a decision based on
incomplete information
-What are the goals of supply chain management and why is it important? - -To 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
It is important because it wants to generate a sustainable advantage through lower costs,
higher quality, and better service from our global supply base of trading partners
-What is a quadrant analysis and why is it important? - -A quadrant analysis is a visual tool
that categorizes data or elements into four quadrants based on two criteria, helping to
prioritize and make decisions from either the products or services. It is important for
simplifying complex data, identifying trends, and making informed choices in various fields.
-Why is it important to evaluate supplier performance? - -- To monitor KPIs (key
performance indicators) and take corrective action, to ensure value is provided by
suppliers
- To create visibility into process and performance across the entire supply management
lifecycle
, -Fill Rate - -Total Quantity Received / Total Quantity Ordered
-Defect Rate - -Total Quantity Defective / Total Quantity Received
-On Time - -Orders Received On Time / Total Orders
-Perfect Purchase Order Percent - -Order arrives on time, without defects, and with
perfect documentation at the right location with correct quantities of all SKUs (stock
keeping unit) ordered
-What is a supplier scorecard and how are they created and utilized? - -- Monitor
performance across multiple metrics over extended time period
- Categorize suppliers based on their scores
- Offer additional business to best performers
-What are the 7 steps of strategic sourcing? - -1. Analyze product categories used by the
business, spending patterns, and the processes and departments involved.
2. Develop a sourcing strategy based on business goals.
3. Analyze the supplier market and create a supplier portfolio.
4. Define request for proposal criteria and templates.
5. Negotiate with and select suppliers.
6. Integrate suppliers into existing processes, onboarding any new vendors or outsourcing
providers.
7. Track performance metrics and optimize the sourcing plan, as needed
-What is holding procurement back? - -1. Lack of KPIs and metrics to monitor the
effectiveness of the performance tomeet the goals of the relationship. If KPIs do exist, they
are generally focused on safety and adherence to payment terms with a very limited view,
if any, on performance and productivity
2. Unwillingness for end-users / operations groups to modify day to day interactions with
suppliers
3. Lack of executive support and commitment to the new operating model developed
through the contracting process
-What types of large-scale changes are companies planning in the coming out of the
pandemic? - -1. Expand their supply base
2. Shrink their global supply chain and rely on local suppliers
3. Increase inventory levels
4. Increase financing for key suppliers
-What is Production - -the process by which inputs are combined, transformed,and turned
into outputs. May involve products and/or services
-What is manufacturing? - -to transform materials via assembly, fabrication, conversion
processes into a finished product, especially by means of a large-scale industrial operation
