Supplier Management and Development: Chapter 9 Quiz

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What are some activities related to supplier development?

Sharing latest technology, providing incentives for improved performance, promoting competition, providing training and development for suppliers’ personnel

What is the objective of supply base optimization?

To determine the optimal number and quality of suppliers in the supply base, often involving eliminating incapable suppliers and adding new ones.

What are some activities involved in supply base optimization?

Development of supplier evaluation and measurement systems, elimination of marginal and small volume suppliers, replacement of good suppliers with better-performing ones, initiation of supplier development projects

What are the advantages of an optimized supply base?

Reduction of supply-base risk, lower supply-base administrative costs, lower total product cost, ability to pursue complex supply management strategies Signup and view all the answers

How does an optimized supply base reduce supply-base risk?

By carefully selecting suppliers, developing collaborative working relationships, reducing variability in performance, and increasing consistency in quality Signup and view all the answers

What is supplier management and development?

Refers to any activity by a buyer to improve a supplier’s performance or capabilities to meet the buyer’s short and long-term needs. Signup and view all the answers

When should a buyer consider removing a supplier from the supply base?

Removing them from the supply base should only be considered if they fail to meet requirements continuously. Signup and view all the answers

What are the advantages of an optimized supply base?

An optimized supply base provides advantages such as reduced costs, improved quality, and increased innovation. Signup and view all the answers

What are the risks of maintaining few suppliers?

The risks of maintaining few suppliers include increased vulnerability to supply chain disruptions and limited access to specialized expertise. Signup and view all the answers

What is the focus of most companies when it comes to developing suppliers' capabilities?

Most companies would rather develop suppliers’ capabilities first before considering their removal from the supply base. Signup and view all the answers

What are the two components of worldwide sourcing?

International Purchasing and Global Sourcing Signup and view all the answers

List three benefits of worldwide sourcing.

Lower cost, access to world-class technology, better quality Signup and view all the answers

Define international purchasing in the context of worldwide sourcing.

Commercial purchase transaction between buyer and supplier in different countries Signup and view all the answers

What is the focus of global sourcing?

Sourcing goods and services from the international market Signup and view all the answers

Name two barriers to worldwide sourcing.

Language barriers, cultural differences Signup and view all the answers

What are the key triggers of worldwide sourcing?

Supply disruption, inflation within home markets, declining domestic supply base, rapidly changing currency exchange rates, sudden emergence of worldwide competitors Signup and view all the answers

List the additional costs components in international purchasing compared to domestic purchasing.

Transportation, duties/tariffs/taxes, insurance premiums, customs broker fees, communication costs, port terminal and handling charges Signup and view all the answers

What are the barriers to worldwide sourcing mentioned in the text?

Lack of knowledge and skills, resistance to change, longer lead times, different business customs, language, and culture, currency fluctuations, increased supply risks Signup and view all the answers

What are the key documentation requirements in international purchasing according to the text?

Letters of Credit, Multiple Bills of Lading, Dock Receipts, Import Licenses, Certificates of Origin, Certificates of Insurance Coverage Signup and view all the answers