Daniel LO5&6

What is the primary purpose of aligning a procurement strategy with organizational goals?

• To increase the number of suppliers

• To ensure procurement activities contribute to strategic success

• To reduce the cost of procurement

• To improve supplier relationships

Which of the following is a key component of efficient resource allocation in a procurement strategy?

• Increasing the number of procurement staff

• Optimizing resources to achieve cost-effectiveness and efficiency

• Reducing the number of suppliers

• Increasing procurement budget

How does a procurement strategy contribute to risk management?

• By increasing the number of suppliers

• By identifying, assessing, and mitigating procurement risks

• By reducing procurement costs

• By improving supplier relationships

What is the importance of compliance with regulations in a procurement strategy?

• To increase procurement costs

• To ensure adherence to relevant laws, policies, and ethical standards

• To reduce the number of suppliers

• To improve negotiation tactics

Which benefit is associated with a well-defined procurement strategy in terms of cost savings?

• Increasing the number of suppliers

• Effective negotiation, supplier selection, and contract management

• Reducing procurement staff

• Increasing procurement budget

What is one of the key benefits of promoting supplier diversity in procurement strategies?

• Reducing the overall cost of goods

• Supporting the inclusion of diverse suppliers

• Increasing the speed of delivery

• Enhancing technical support

How does an effective procurement strategy contribute to an organization's operations?

• By increasing the number of suppliers

• By streamlining the procurement process

• By reducing the quality of goods

• By eliminating all risks

What is the role of strategic decision-making in procurement strategies?

• To increase the number of suppliers

• To provide a framework for evaluating options

• To reduce the need for procurement

• To eliminate all procurement costs

What is included in the introduction of a procurement strategy?

• Detailed cost analysis

• Overview of the organization's goals and objectives

• List of all suppliers

• Technical specifications of products

What should be clearly stated in the objectives of a procurement strategy?

• The number of suppliers

• Procurement objectives aligned with organizational goals

• The total budget for procurement

• The timeline for delivery