18 Questions
What is the main purpose of negotiation?
To discuss with someone in order to reach an agreement
Which department should be involved in the contracting process to avoid legal issues?
Legal Department
What is the role of proper communication during negotiations?
To establish trust and professionalism
What does ethical sourcing focus on?
Ensuring products are obtained in a responsible and sustainable way
Why is it important to involve internal stakeholders in contracting?
To avoid unexpected legal issues
What is a key characteristic of negotiations according to the text?
It follows a pattern of activity from start to finish
What is the main difference between outsourcing and global sourcing?
Outsourcing involves internal activities, while global sourcing involves searching for suppliers worldwide.
What does Supplier Relationship Management (SRM) involve?
Identifying critical suppliers and managing relationships with them.
What is a key benefit of a strong relationship between a buyer and a supplier?
Better material flow and information.
Why is negotiating excellent agreements important in Supply Chain Management?
To provide a competitive advantage and mutual benefits.
What does Global Sourcing involve?
Searching for and selecting suppliers anywhere in the world.
In Supply Chain Management, what is the purpose of contracting?
To negotiate flexible agreements that are beneficial for both parties.
What is one thing to consider when identifying suppliers?
The supplier's ability to supply the right product or service
What is a key factor to evaluate suppliers on during the selection process?
Supplier's ability to supply the right quantity of products
What is the term used for the decision of doing something internally or outsourcing it?
Make-Versus-Buy Decision
In supplier identification, what should managers check to validate a supplier's credibility?
Supplier's certifications and references
What should global sourcing focus on when selecting suppliers?
Suppliers that meet the buyer's needs globally
What aspect is crucial for supplier relationship management?
Maintaining open communication with suppliers
Test your knowledge on negotiation and contracting processes including preparation, communication, and trust-building. Learn about the key areas involved in negotiation and how to enter legally binding agreements.
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