Global Procurement Management

What is the primary goal of sourcing?

• 1. Maximizing short-term profits

• Identifying and managing suppliers effectively

• Reducing employee workload

• Avoiding supplier contracts

How does sourcing impact business performance?

• 1. By increasing costs and reducing efficiency

• 1. By making all purchasing decisions internal

• By optimizing supplier selection and reducing supply chain risks

• By limiting procurement choices

Which step is the first in the Seven-Step Strategic Sourcing Process?

• Analyze supplier market

• Develop strategy

• 1. Select sourcing process

• Profile the category

What does e-sourcing involve?

• 1. Online procurement tools for bidding and supplier negotiations

• Manual paper-based purchasing

• 1. Eliminate the need for supplier contracts

• Make procurement decisions arbitrary

E-procurement primarily aims to:

• Replace procurement professionals

• 1. Reduce paperwork and increase efficiency

• Eliminate the need for supplier contracts

• 1. Make procurement decisions arbitrary

What is the purpose of supplier evaluation?

• To assess supplier reliability and performance

• 1. To avoid procurement responsibilities

• To increase procurement risks

• 1. To eliminate contract agreements

What does PQQ stand for?

• Purchase Quality Quotation

• Product Quality Guarantee

• Preferred Quality Quote

• Pre-Qualification Questionnaire

Why do businesses conduct supplier performance reviews?

• To terminate all supplier contracts

• To reduce transparency

• 1. To evaluate and improve procurement strategies 

• 1. To eliminate supplier engagement

Which of the following is NOT a reason to evaluate supplier performance?

• Enhance supplier performance

• 1. Decide whether to keep or remove a supplier from an approved list

• 1. Motivate ongoing supplier improvement

• Increase supplier prices

What is a key factor in make-or-buy decisions that involves analyzing costs?

• Costs

• 1. Uncertainty

• Capabilities

• Strategy