Negotiation and Contracting Process Quiz

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What is the main purpose of negotiation?

To establish trust with suppliers

To ensure products are sourced ethically

To create formal and legally binding agreements

To discuss with someone in order to reach an agreement (correct)

Which department should be involved in the contracting process to avoid legal issues?

Sales and Marketing

Legal Department (correct)

Human Resources

IT Department

What is the role of proper communication during negotiations?

To establish trust and professionalism (correct)

To finalize the negotiation quickly

To collect internal information

To ensure products are ethically sourced

What does ethical sourcing focus on?

Ensuring products are obtained in a responsible and sustainable way Signup and view all the answers

Why is it important to involve internal stakeholders in contracting?

To avoid unexpected legal issues Signup and view all the answers

What is a key characteristic of negotiations according to the text?

It follows a pattern of activity from start to finish Signup and view all the answers

What is the main difference between outsourcing and global sourcing?

Outsourcing involves internal activities, while global sourcing involves searching for suppliers worldwide. Signup and view all the answers

What does Supplier Relationship Management (SRM) involve?

Identifying critical suppliers and managing relationships with them. Signup and view all the answers

What is a key benefit of a strong relationship between a buyer and a supplier?

Better material flow and information. Signup and view all the answers

Why is negotiating excellent agreements important in Supply Chain Management?

To provide a competitive advantage and mutual benefits. Signup and view all the answers

What does Global Sourcing involve?

Searching for and selecting suppliers anywhere in the world. Signup and view all the answers

In Supply Chain Management, what is the purpose of contracting?

To negotiate flexible agreements that are beneficial for both parties. Signup and view all the answers

What is one thing to consider when identifying suppliers?

The supplier's ability to supply the right product or service Signup and view all the answers

What is a key factor to evaluate suppliers on during the selection process?

Supplier's ability to supply the right quantity of products Signup and view all the answers

What is the term used for the decision of doing something internally or outsourcing it?

Make-Versus-Buy Decision Signup and view all the answers

In supplier identification, what should managers check to validate a supplier's credibility?

Supplier's certifications and references Signup and view all the answers

What should global sourcing focus on when selecting suppliers?

Suppliers that meet the buyer's needs globally Signup and view all the answers

What aspect is crucial for supplier relationship management?

Maintaining open communication with suppliers Signup and view all the answers

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