Understanding Procurement in Supply Chain Management

What is procurement primarily associated with?

• Business operations

• Government policies

• Educational institutions

• Personal shopping

What is the main purpose of procurement in businesses?

• To monitor competitors' strategies

• To increase employee productivity

• To secure goods and services for operations

• To enhance brand image

What is a key part of a company's strategy according to the procurement process?

• Marketing campaigns

• Human resource management

• Procurement of materials or services

• Customer service improvement

What system is used to transmit procurement requisitions?

• DMS system

• CMS system

• ERP system

• CRM system

What does the demand plan consider in procurement?

• Global market trends

• Employee satisfaction

• Supplier's lead time

• Local laws and regulations

In the cake baking scenario, who represents the demand planning team?

• The supplier of ingredients

• The cake baker

• Sarah, the party planner

• The guests attending the party

Why is procurement important in supply chains?

• It enhances product design

• It focuses on global expansion

• It ensures employee satisfaction

• It helps find reliable suppliers at competitive prices

What are the two main types of procurement?

• Internal and External

• Direct and Indirect

• Primary and Secondary

• Tangible and Intangible

What does indirect procurement typically involve?

• Purchasing raw materials

• Buying items for day-to-day operations

• Investing in production equipment

• Hiring permanent employees

What does goods procurement largely refer to?

• Procurement of services only

• Purchasing software only

• Procurement of physical items

• Investment in stocks and bonds