Purchasing Management Quiz

What is one of the key objectives of purchasing management?

• Ensuring the right product at the right price, at the right time

• Only ensuring the continuity of supply

• Solely managing signed contracts

• Only managing supplier relationships

Which of the following is not a part of the purchasing process?

• Identifying user requirements

• Evaluating supplier performance

• Defining marketing strategies

• Developing agreements with suppliers

Which stage in the Procure-to-Pay (P2P) process comes immediately after need clarification?

• Supplier identification/selection

• Contract generation

• Purchase requisition

• Settlement and payment

Which of the following best describes the purpose of spend analysis?

• Collecting data for future forecasting

• Analyzing historical spending by commodity

• Identifying new suppliers

• Selecting competitive suppliers

What is a key benefit of e-procurement?

• Virtual elimination of paperwork

• Increased manual tracking of orders

• Reduction in order cycles without visibility

• Increase in manual errors

When is competitive bidding most appropriate?

• When specifications are clear, and there are many suppliers

• When there is an urgent need for a product or service

• When a supplier is already preferred

• When negotiation terms are complex

Which of the following is a role of strategic supply management?

• Managing only supplier relationships

• Conducting a spend analysis

• Completing the procurement process

• Ignoring supplier performance

What is the primary purpose of contract management in purchasing?

• To negotiate with suppliers

• To define contract terms and ensure compliance

• To create a competitive bidding process

• To review the supplier’s business plan

In supplier relationship management, which of the following is a key responsibility?

• Developing the supplier scorecard

• Handling only purchase orders

• Ignoring supplier performance

• Decreasing product quality

Which of the following is true about the procurement process for capital equipment?

• It is a standard process used frequently for small-value items.

• It requires large sums of money and involves irregular frequency.

• It involves only small-scale equipment.

• It is only used for long-term consumable products.