Global Procurement Management Q7

Which of the following is NOT a basic e-sourcing tool?

• Buy-side system
• Sell-side system
• Email
• Third-party marketplace

Which cost is NOT usually associated with offshore sourcing?

• Port charges
• Incoterms documentation
• Salary of local HR manager
• Insurance premiums

What did Boeing fail to anticipate when empowering suppliers too early?

• Their lack of process capability
• Labor cost increases
• Customer backlash
• Marketing errors

Which of the following is true about leverage in procurement?

• Cost savings always increase profit
• Leverage enhances profitability
• Defective goods are acceptable
• Labour costs are irrelevant

Which term refers to the process of bringing together functions or organizations to solve a common problem?

• Outsourcing
• Integration
• Distribution
• Benchmarking

Which of the following is NOT one of the four major levels of organizational policy?

• Personal policies
• Operating procedures
• Executive policies
• Functional policies

In which case is adversarial negotiation more appropriate?

• Long-term partnership
• Complex project cooperation
• One-off transaction
• Product development agreement

Corporate objectives are specific and usually time-bound.

• True
• False

Which of the following best describes global sourcing?

• Buying locally to reduce risk
• Random procurement from foreign suppliers
• Avoiding procurement complexities
• Integrating supply activities across global operations

What major innovation did Boeing introduce in the 787 Dreamliner?

• Wooden airframe
• Carbon composite materials
• Fully manual control systems
• Solar-powered engine