Supply Management Defined correct answers Sourcing decisions and purchasing activities (collectively Supply Management) serve to link a company with its upstream supply chain partners
Supply Management is..... correct answers ...the broad set of activities carried out by organizations to:
- an...
OMGT TEST 2 3123 ECU || 100% PASSED ANSWERS.
Supply Management Defined correct answers Sourcing decisions and purchasing activities
(collectively Supply Management) serve to link a company with its upstream supply chain
partners
Supply Management is..... correct answers ...the broad set of activities carried out by
organizations to:
- analyze sourcing opportunities
- develop sourcing strategies
- select suppliers
- analyze and negotiate price and cost
- carry out all the activities required to procure goods and services
Why is Supply management is critical for global correct answers to compete globally for
advances in information systems and changes in environment. "______-______"-ask Kirchoff
Why is Supply management is critical financial impact for the average manufacturer because
correct answers nearly 60% of the product value comes from material, on average
Over 60% of firms total COGS is controlled by correct answers Purchasing
Supply management represents a major opportunity correct answers to increase profitability
Pretax profit old correct answers = Pretax earnings / Sales (how much you make on every $1
of sales)
To increase profit through sales requires: correct answers (COGS X %) / Pretax profit old =
## increases ( from old Sales to (sales + ##)
Why Supply Management is critical for performance impact correct answers Quality
Delivery
Technology
Responsiveness
Similar management goals
Problem solving
Study Performance impact chart chapter 7 slide 12 correct answers
The Supply Management (SM) process correct answers 1. Assess Opportunities
2. Profile internally/ externally
3. Develop the Sourcing Strategy
4. Screen Suppliers and create selection criteria
5. Conduct Supplier Selection
, -Negotiate
-Ordering *procure to pay cycle*
-Follow up and expediting *pay cycle*
-Receipt and inspection *pay cycle*
-settlement & payments *pay cycle*
-Records maintenance *pay cycle*
THE SM PROCESS :
Assess Opportunities, Profile internally / Externally, Develop the sourcing Strategy and
Screen Suppliers and create Selection Criteria correct answers Typically, more strategic and
difficult to accomplish
THE SM PROCESS:
Ordering, Follow up and expediting, receipt and inspection, Settlement & Payments, and
Records maintenance correct answers Typically, more tactical and easier to accomplish
1. Assess Opportunities correct answers Spending analysis on the company bulk spending
and suppliers highest spending
1. Assess Opportunities firms purchasing needs correct answers New Projects and Existing
Projects
2. Profile Internally / Externally - Sourcing decisions are high-level, often strategic decisions:
correct answers Which product will use resources within the firm and products will be
provided by external supply chain?
2. Profile Internally / Externally have correct answers Insourcing and Outsourcing
Insourcing correct answers The use of resources within the firm
to provide products or services
Outsourcing correct answers The use of supply chain partners
to provide products or services
The SM Process: Profile and Strategy Pros of Insourcing correct answers High degree of
control, Ability to oversee the entire program, and economies of scale and / or scope
The SM Process: Profile and Strategy Cons of Insourcing correct answers Required strategic
flexibility, Required high investment, and Loss of access to superior products and services
offered by potential suppliers
The SM Process: Profile and Strategy Pros of outsourcing correct answers High strategic
flexibility, Low investment risk, Improved cash flow, and Access to state-of-the-art products
and services
The SM Process: Profile and Strategy Cons of Outsourcing correct answers Possibility of
choosing a bad supplier, Loss of control over the process and core technologies,
Communication and coordination challenges, and "Hollowing out" of the corporation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ProPerfomer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.39. You're not tied to anything after your purchase.
