Wrap-up Course 1_SCM301m

Procurement and Purchasing are basically the same.

• True
• False

Answer explanation

Jupiter is a gas giant made primarily of hydrogen and helium. Unlike terrestrial planets that have solid surfaces, gas giants like Jupiter don't have a well-defined solid surface, allowing them to accumulate more mass in a gaseous form. This composition has allowed Jupiter to grow significantly larger than planets with solid surfaces.

Procurement Professionals need to do a better job "selling" their function.

• True
• False

It is a good idea to share your company's challenges with your key suppliers and invite them to be equal partners.

• True
• False

Commodity/Category Management includes responsibility for Supplier sourcing, relationship management, industry and market analysis, quotations, terms and conditions, negotiation strategy, and business awards. This also includes strategies regarding the movement of materials, inventory, cash cycle management, and understanding and setting trends and direction. And this also includes a detailed understanding and strategic planning for the sub-components, sub suppliers, and the end-to-end supply chain.

• True
• False

It is not a good idea to deal with suppliers that are larger than your firm.

• True
• False

Indirect is easier than direct because they generally are smaller in scope and more concentrated.

• True
• False

It is a good idea for companies to outline explicit policies to ensure that those who deal with suppliers know precisely what is acceptable and what is not. These often include rules regarding the receipt of gifts, the treatment of confidential information, a code of conduct, fair and ethical quotation and negotiation processes, declaration of conflicts of interest, diversity, personal benefits, and illegal/unethical behavior.

• True
• False

Once the procurement department implements a spend management information system tool, the problem of the collection of good data is solved.

• True
• False

One of the most important elements that must be present in an effective Supplier Relationship Management program is having a formal, visible process to progress suppliers through your relationship management continuum. Transactional to Preferred to Tactical to Strategic.

• True
• False

Commodity Management and Category Management are always the same regardless of the industry

• True
• False