Blank Quiz 34

What is procurement management?

• Procurement management is the process of selling goods and services to customers.

• Procurement management involves managing employee performance and productivity.

• Procurement management is the process of acquiring goods and services from external sources.

• Procurement management is the strategy for developing new products and services.

Why is risk management important in procurement?

• Risk management is only necessary for large corporations.

• Procurement does not involve any financial risks.

• Risk management is primarily focused on employee safety.

• Risk management is important in procurement to identify and mitigate potential risks that could disrupt supply chains and impact financial stability.

Can you name a common risk in procurement?

• Excessive lead times

• Overstocking inventory

• Supplier loyalty programs

• Supply chain disruption

What can happen if a supplier fails to deliver?

• No impact on production schedule

• Production delays and increased costs.

• Delivery is always on time

• Supplier provides extra materials

How can we reduce risks in procurement?

• Avoid any form of supplier evaluation.

• Implement thorough supplier assessments and diversify the supplier base.

• Rely solely on a single supplier for all materials.

• Increase the procurement budget without analysis.

What is a contingency plan in procurement?

• A contingency plan is a list of preferred suppliers.

• A contingency plan outlines the procurement team structure.

• A contingency plan in procurement is a strategy to manage risks and ensure continuity in the procurement process.

• A contingency plan is a budget allocation for procurement.

Why should we evaluate suppliers before choosing them?

• To ensure quality, reliability, and mitigate risks.

• To focus solely on price without considering quality.

• To limit supplier choices and options.

• To increase costs and complexity.

What role does communication play in managing procurement risks?

• Communication is essential for identifying, assessing, and mitigating procurement risks.

• Communication has no impact on procurement efficiency.

• Communication is only necessary for contract signing.

• Communication is primarily used for marketing purposes.

How can technology help in procurement risk management?

• Technology increases procurement costs without benefits.

• Technology eliminates all risks in procurement.

• Technology has no impact on procurement processes.

• Technology helps in procurement risk management by enabling data analysis, real-time monitoring, and automated risk assessments.

What should you do if a risk occurs during procurement?

• Ignore the risk and continue procurement as planned.

• Document the risk and move on without action.

• Notify the supplier and wait for their response.

• Assess the risk, implement a response plan, and monitor the situation.