Global Procurement Management Q6

A supplier offers a base price of $80,000. Additional offshore costs = 35% of the base price. A domestic supplier quotes $102,000 with no extras. Which supplier is cheaper and by how much

• Offshore – cheaper by $2,000
• Domestic – cheaper by $2,000
• Offshore – cheaper by $6,000
• Domestic – cheaper by $6,000

Which of the following is NOT one of the 5 Rights in procurement?

• Right quality
• Right buyer
• Right time
• Right price

What caused a technical mismatch between suppliers and Boeing?

• Language differences
• Incorrect product drawings
• Lack of on-site support and poor engineering communication
• Overpriced materials

Which model helps organizations assess their SRM maturity level?

• Bensaou Model
• PWC SRM Maturity Model
• Porter’s Five Forces
• Kraljic Matrix

Which factor boosts logical persuasion in negotiation?

• Rumors about the supplier
• Personal opinion
• Market and cost analysis
• Guesswork

A buyer negotiates a better unit price and shortens delivery times. This contributes most directly to

• Kaizen process
• Strategic ethics
• Procurement effectiveness
• Procurement efficiency

Procurement procedures are best defined as:

• Vision statements for the company
• Random guidelines for external use
• Sequential steps and operating instructions
• Marketing strategies

Which step in sourcing involves classifying suppliers and defining approach?

• Contracting
• Forecasting
• Strategy development
• Payment approval

Which of the following is NOT a challenge in global sourcing?

• Language barriers
• Currency fluctuations
• Political instability
• Supplier training

Procurement's influence on profitability is always minimal in service industries.

• True
• False