Chapter 1 - Global Procurement Structure

Burns and Stalker identified two basic levels of procurement organizational structure, what are they?

• Centralised and Decentralised Procurement Organisation

• Local and Overseas Procurement Organisation

• Supplier and Sub-contractor Procurement Management

• Completely Decentralised Procurement

Select 3 (THREE) actions which are done by the Finance Department.

• Request for quotations.

• Issue Purchase Order to vendor.

• Receive Invoice from vendor.

• Ensure goods are received and documented in the GRN.

• Pay vendor.

Which is a disadvantage of centralised procurement.

• Lower procurement cost due to quantity discount.

• Effect better negotiation power.

• Effect better variety deduction and limit wastage in procurement.

• Smaller suppliers may lose out in centralized procurement.

More procurement organizations are setting up global virtual teams to source and manage supply-chain globally. Which is the hardest to manage?

• Choose the right technology for virtual team collaboration.

• Clarify the roles and responsibilities of virtual team members.

• Determine which user-friendly software and integrations for e-Procurement.

• Coordinate and synchronize the global virtual team's time zones.

______ is data that describes other data. It summarises basic information about data.

• Metadata

• Digital DNA

• Sustainable procurement

• Blockchain

Give 1 (ONE) advantage in forming a cross-functional team in a global procurement organization structure

• Enhance organization's creativity by bring people with different experience and backgrounds.

• Cost will arise when the economy is facing a downturn due to external factors.

• Less involvement of procurement in strategic decision making.

• Impossibility for one department to make assessment and decision without inputs from other departments.

It is important to establish appropriate procurement job profiles in global procurement organisation structure. Which is NOT considered?

• Ability to make outsourcing decisions.

• Ability to reduce costs and assess potential suppliers in the supply chain.

• Ability to negotiate with suppliers having cross-culture and belief.

• Ability to limit the number of global suppliers economically.

The following are benefiticals of moving the procurement process online, EXCEPT

• Simplified process in procurement.

• Implement shorter processing time.

• Implement longer processing time.

• Ability to deal with suppliers anywhere in the world.

Which of the following is NOT a factor that influence procurement management changes?

• Globilisation

• Zombie service level agreements

• IT development

• Changing role of procurement

Which are the major characteristic of a hybrid procurement organization structure?

• Voluntary Coordination - each procurement unit is free to decide on it own.

• Led-Procurement - one procurement unit having greater purchasing volume and knowledge shall decide for the others.

• Led-Design Concept - each purchasing unit is free for their own design contract of materials and components.

• All listed here