SCM 4350 FINAL EXAM STUDY GUIDE
Maverick Spend - Answer -Spend outside of contract
Leverage Spend - Answer -Demand Aggregation + Supplier Rationalization
Single vs. Sole Source - Answer -Single Source is a choice
Sole Source is the only option
Supplier Rationalization - Answer -Finding the Optimal Number of Suppliers
Supplier Density - Answer -(%Spend with top 5 suppliers) ÷ (True Category Spend)
Risk of Supplier Rationalization - Answer -Supplier Disruption Risk
Choosing/Eliminating the wrong suppliers
Supplier Redundancy - Answer -Having more than 1 supplier for each commodity,
reduces disruption risk
Porters 5 Forces - Answer -1. Supply Market Internal Competitor (biggest impact)
2. Supplier Bargaining Power (supply chain)
3. Buyer Bargaining Power (supply chain)
4. Threat of New Entrants
5. Pressure from Substitutes
Micro vs. Macro - Answer -Macro is global across industries: supply/demand power
dynamics
Micro is industry specific: market size, (fragmented, consolidated, or oligopy), price
trends
Scorecarding - Answer -KPI + SSQDC. Measuring performance on suppliers. Requires
facility visit
Portfolio Matrix: Leverage - Answer -High Value, Low Risk
Use Leverage Spend
Portfolio Matrix: Critical - Answer -High Value, High Risk
Strategic partnership(collaborate) to reduce risk
Portfolio Matrix: Bottleneck - Answer -Low Value, High Risk
Mitigate Risk by finding alternative suppliers
Portfolio Matrix: Routine - Answer -Low Value, Low Risk
E-procurement, P-card
Maverick Spend - Answer -Spend outside of contract
Leverage Spend - Answer -Demand Aggregation + Supplier Rationalization
Single vs. Sole Source - Answer -Single Source is a choice
Sole Source is the only option
Supplier Rationalization - Answer -Finding the Optimal Number of Suppliers
Supplier Density - Answer -(%Spend with top 5 suppliers) ÷ (True Category Spend)
Risk of Supplier Rationalization - Answer -Supplier Disruption Risk
Choosing/Eliminating the wrong suppliers
Supplier Redundancy - Answer -Having more than 1 supplier for each commodity,
reduces disruption risk
Porters 5 Forces - Answer -1. Supply Market Internal Competitor (biggest impact)
2. Supplier Bargaining Power (supply chain)
3. Buyer Bargaining Power (supply chain)
4. Threat of New Entrants
5. Pressure from Substitutes
Micro vs. Macro - Answer -Macro is global across industries: supply/demand power
dynamics
Micro is industry specific: market size, (fragmented, consolidated, or oligopy), price
trends
Scorecarding - Answer -KPI + SSQDC. Measuring performance on suppliers. Requires
facility visit
Portfolio Matrix: Leverage - Answer -High Value, Low Risk
Use Leverage Spend
Portfolio Matrix: Critical - Answer -High Value, High Risk
Strategic partnership(collaborate) to reduce risk
Portfolio Matrix: Bottleneck - Answer -Low Value, High Risk
Mitigate Risk by finding alternative suppliers
Portfolio Matrix: Routine - Answer -Low Value, Low Risk
E-procurement, P-card
