L4M1 Scope and Influence of Procurement and Supply Recap Week 1

Procurement involves

• ringing around suppliers and obtaining quotations

• obtaining something, the procurement process begins by identifying a need and is complete once the goods or services have been delivered

• only obtaining physical goods

• only administrative duties

A Supply Chain Network...

• is a single company responsible for producing and delivering all goods and services.

• a fixed structure that never changes.

• involves individuals, Org, technology, activities and resources to make sure goods or services flow along the chain.

• is only concerned with the transportation of goods.

Supply Chain Management is...

• the process of managing a company's internal inventory.

• solely focused on reducing costs.

• only concerned with the transportation of goods from one place to another.

• the management of the Supply Chain to reduce costs, improve value, reduce risk and managing customer relationships.

Which of the following statements correctly describes the difference between upstream and downstream supply chain activities?

• Upstream supply chain activities involve sourcing and procurement of raw materials, while downstream supply chain activities involve distribution and delivery of finished products to customers

• Upstream supply chain activities involve the delivery of finished products to customers, while downstream supply chain activities involve sourcing and procurement of raw materials.

• Upstream supply chain activities are focused on marketing and sales, while downstream supply chain activities are focused on production and manufacturing.

• Upstream supply chain activities only occur within the company, while downstream supply chain activities occur outside the company.

Which of the following statements correctly describes the role of physical movements and information flow in a supply chain network?

• Physical movements are only concerned with the internal movement of goods within a company, while information flow is only concerned with external communication between suppliers and customers

• Physical movements involve the exchange of data and communication between different entities in the supply chain, while information flow involves the transportation of goods from suppliers to customers

• Physical movements and information flow are unrelated aspects of a supply chain network and do not impact each other

• Physical movements involve the transportation of goods from suppliers to customers, while information flow involves the exchange of data and communication between different entities in the supply chain to coordinate activities.

Which of the following statements correctly describes supply chain tiering?

• Supply chain tiering is the process of ranking suppliers based on their geographical location

• Supply chain tiering refers to the hierarchical arrangement of suppliers in a supply chain, where Tier 1 suppliers directly supply the manufacturer, Tier 2 suppliers supply Tier 1 suppliers, and so on.

• Supply chain tiering refers to the process of categorising products based on their importance to the company.

• Supply chain tiering involves the division of a company's internal departments based on their roles in the supply chain.

Which of the following statements correctly defines logistics?

• Logistics is the process of marketing and selling products to customers.

• Logistics is the process of manufacturing goods and services within a company.

• Logistics is solely concerned with the transportation of goods from suppliers to customers.

• Logistics is the process of planning, implementing, and controlling the efficient movement and storage of goods, services, and information from the point of origin to the point of consumption to meet customer requirements

Which of the following correctly lists the five stages of Whole Life Costing (WLC)?

• Research, Development, Testing, Launch, and Feedback

• Planning, Acquisition, Owning, Operating and Disposal

• Planning, Design, Construction, Marketing, and Sales.

• Procurement, Production, Distribution, Sales, and Customer Service

Which of the following statements correctly describes how added value is created in a supply chain?

• Added value in a supply chain is created by enhancing a product or service through various activities such as additional features, sustainability, reduced input costs, which increase its worth to the customer.

• Added value in a supply chain is created solely by reducing the cost of raw materials

• Added value in a supply chain is only achieved through marketing and advertising efforts

• Added value in a supply chain is determined by the number of suppliers involved

Which of the following statements correctly describes the concept of value for money in procurement?

• Value for money in procurement means always choosing the cheapest option available

• Value for money in procurement is solely about obtaining the highest quality products, regardless of cost

• Value for money in procurement refers to achieving the best possible outcome by considering the balance of cost, quality, and sustainability over the entire lifecycle of the goods or services

• Value for money in procurement is achieved by selecting suppliers based on their geographical proximity