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SCMN-3730 Exam 1 solutions || with verified answers graded A+ || latest update 2024/2025
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SCMN-3730 Exam 1 solutions || with verified answers graded A+ || latest update 2024/2025
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SCMN-3730 Exam 1 solutions || with verified answersgraded A+ || latest update 2024/2025
Michael Porter's Value chain
- Support activities
- primary activities
Support activities (Michael Porter's value chain)
- firm infrastructure
- human resource management
- tech development
- procurement
Primary activities (Michael Porter's value chain)
- inbound logistics
- operations
- outbound logistics
- marketing and sales
- service
Procurement and supply purchasing
source from 2nd tier and first tier suppliers
elements of strategic orientation
1. business strategy cycle
2. strategic procurement cycle
3. procurement sub-processes
business strategy cycle
○ Articulate vision, mission and goals
○ Scan environment
○ Develop strategic priorities and plans
○ Implement
○ Evaluate and learn
,strategic procurement cycle
○ Articulate procurement's vision, mission and goals
○ Situation Analysis
○ Develop procurement strategy
○ Implement procurement strategy
○ Continuous improvement
procurement sub-processes
○ Sourcing
○ Managing supplier relationships
○ Ordering cycle
benefits of cost reduction
- increases margin (regardless of sales increase)
lead time
The amount of time between the recognition that an order needs to be placed and
the arrival of the needed merchandise at the seller's store, ready for sale.
ways to decrease lead time
Stabilize- the amount of time it takes for the product to arrive
Reduce- the amount of time it takes for the product to arrive
Ensure- the amount of time it takes for the product to arrive
organizational imports
Focal organization:
- innovation
- risk
- environmental impact
- quality
value advantage
○ Quicker response
○ Improved quality
○ Increased reliability
○ Improved relationships
, ○ Manage and mitigate risks
○ Source innovation
cost advantage
○ Efficiency gains / utilization
○ Reduce purchasing costs
○ Reduce in inventory levels
○ Sharing capital investment
○ Reduced waste
decentralized procurement structure
________ procurement organization with no corporate role
- lowest central purchasing control
- highest local P&L responsibility
pros of decentralized procurement structure
■ Divisional control
■ "Flat" organization structure - clear accountability
■ Optimal local supply base and service
cons of decentralized procurement structure
■ No corporate leverage
■ No sharing of best practices/approaches
■ No "company-wide" measurement and tracking
coordinated procurement structure
Decentralized sourcing, but center led strategy
Voluntary commodity strategy collaboration across BU
- 2nd lowest central purchasing control
- 2nd highest local P&L responsibility
pros of coordinated procurement structure
■ Divisional control
■ Sharing of best practices and procurement strategies
cons of coordinated procurement structure
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