7. Procurement

What is the primary objective of a Make-or-Buy analysis in procurement?

• To select the cheapest supplier

• To determine whether to produce in-house or purchase externally

• To evaluate supplier performance

• To negotiate favorable payment terms

Which document is typically used to request price quotes from potential suppliers in procurement?

• RFI (Request for Information)

• RFP (Request for Proposal)

• RFQ (Request for Quotation)

• RFB (Request for Bid)

What is the key role of supplier relationship management (SRM) in procurement?

• Evaluating competitors' offerings

• Maintaining strong and collaborative relationships with suppliers

• Conducting cost-benefit analyses

• Selecting the lowest-cost supplier

Which stage of the procurement process involves the negotiation of terms, pricing, and contract details with selected suppliers?

• Supplier identification

• Goods receipt and inspection

• Contracting

• Order fulfillment and delivery

What is the primary objective of supplier evaluation in procurement?

• Identifying potential suppliers

• Negotiating pricing terms

• Assessing supplier qualifications and performance

• Managing internal procurement teams

How does strategic procurement contribute to an organization's competitive advantage?

• By focusing solely on cost reduction

• By minimizing supplier relationships

• By optimizing procurement outcomes to align with organizational goals

• By reducing the need for inventory management

What is the primary purpose of a Request for Information (RFI) in the procurement process?

• To solicit price quotations from suppliers

• To request detailed proposals from potential suppliers

• To gather general information about potential suppliers and their capabilities

• To negotiate payment terms with suppliers

In the context of procurement, what is the role of a procurement policy within an organization?

• To set the price for goods and services

• To establish guidelines and procedures for procurement activities

• To select suppliers without competition

• To promote decentralized procurement practices

What is the primary focus of sustainability considerations in modern procurement practices?

• Minimizing costs

• Promoting ethical behavior

• Ensuring on-time delivery

• Reducing environmental and social impacts