Deck 20: Purchasing and Supply Strategy Trends

Question 1

Category strategies will become less complex,requiring only internal executive engagement.

Answer 1

False

Question 2

Time-related capabilities will drive the next generation of order winners in the eyes of the customer.

Answer 2

True

Question 3

An individual supplier focus (versus a supply network focus)for category strategy development will be increasingly applied.

Answer 3

False

Question 4

Supplier collaboration easily fits in with the traditional view of supply management's role in many organizations.

Question 5

The importance of strategic partners,both buyers and sellers,will likely increase.

Question 6

Perhaps the most obvious area where firms are concentrating their time-reduction efforts is during product and process development.

Question 7

Companies will decreasingly use value-based sourcing approaches to evaluate how a supplier or group of suppliers may be utilized to gain competitive advantage for categories with high business impact.

Question 8

Purchasing and supply will be expected to play a growing role in sustainability efforts of the firms,many of which closely involve suppliers.

Question 9

Supply chains that are seamless and driven solely by internal production needs will be required.

Question 10

Overall,future purchasing and supply mission and goals will be narrower and less aligned with the strategic objectives of the firm.

Question 11

There will always be debate about which activities or operations should be performed internally and which should be outsourced.

Question 12

Category strategy time horizons will be expanded to three to five years.

Question 13

Companies are seeking suppliers with discrete capabilities that can add new types of value,and they are leveraging untapped competencies and knowledge already in the supply base for an existing category.

Question 14

Spend management will continue to increase its flexibility for analytics and will be more easily implemented.

Question 15

Lack of availability or a quality problem at a Tier 2 supplier seldom creates significant end-customer performance problems.

Question 16

Collaboration with suppliers is less frequently identified as an important success factor in achieving competitiveness.

Question 17

Competition is no longer between fast and agile and slow firms but rather between big and small firms.

Question 18

Firms will become more strategic and place less importance on continuous improvement in purchase unit cost,quality,and delivery performance.

Question 19

Purchasing will play a lesser role in time-based competition because of its inability to affect time-related processes and activities.

Question 20

Contract management software will become less integrated with spend management,particularly in terms of compliance.

Question 21

Which of the following is not one of the strong soft-side skills for future supply managers?

A) Collaborative working style.
B) Innovative spirit that challenges current approaches.
C) Seeking innovative solutions to problems.
D) Leadership abilities.
E) Cost analytics.

Question 22

Which of the following is not a reason why an emphasis on outsourcing will continue?

A) The pressure to reduce costs is severe and will only increase.
B) Globalization and finding lower cost sources in emerging markets will have less and less effect on further outsourcing.
C) Firms are continuing to become more highly specialized in product and process technology.
D) Wall Street recognizes and rewards firms that achieve higher return on investment.
E) The need for responsiveness in the marketplace is increasingly affecting insourcing/outsourcing decisions.

Question 23

Supply management will decreasingly need both broader general business knowledge and multidiscipline skills.

Question 24

Strong "soft-side" skills are no longer a key determinant of success in the global marketplace.

Question 25

All of the following are examples of the future focus on supply chain performance except ____.

A) accelerating and obtaining more innovation from suppliers
B) focusing more and more on day-to-day tactical purchasing activities
C) leveraging supplier capabilities and know-how to establish new sources of revenue
D) identifying and mitigating supply risks of any kind to ensure business continuity
E) expanding the breadth and depth of cost management efforts

Question 26

Management risk and protecting intellectual property may limit collaboration with suppliers.

Question 27

The currently dominant center-led model for supply management will no longer continue be a key strategy over the next decade.

Question 28

Problems will arise when global processes are not supported by cross-functional teams.

Question 29

Which of the following is not an initiative of a robust category strategy?

A) Low-cost country sourcing.
B) Switching suppliers to increase product innovation.
C) Supplier development.
D) Design specification changes.
E) Monitoring input costs.

Question 30

Which of the following is not one of the components of material ordering cycle time that supply chain management practices affect directly?

A) Transmission of requirements to suppliers.
B) Supplier's ordering and manufacturing cycle time.
C) Allocation of manufacturing overhead costs.
D) Delivery from suppliers.
E) Incoming receipt and inspection.

Question 31

The purpose of [a] ____ is to maximize value by leveraging external resources and capabilities.

A) category strategy
B) just-in-time manufacturing
C) kanban
D) cost reduction
E) None of these choices.

Question 32

The supply management leader will act as the chief cost-management officer.

Question 33

Purchasing and supply will become less integrated with other company functions such as engineering,operations,and finance.

Question 34

Which of the following is a question that companies will need to ask strategically to most effectively structure the supply base for each of their purchase category families?

A) How many suppliers do we want for this category (and in the supply base), and what role should each play?
B) What current and future capabilities are required, and where in the world should the supplier(s) be located?
C) Do we want to lead and/or manage supplier networks at the Tier 2 and Tier 3 levels?
D) All of these choices.
E) None of these choices.

Question 35

Which of the following is one of the external forces affecting purchasing and supply management's role and required contributions to a firm's success?

A) Global competition and macro-economic changes.
B) Mergers, acquisitions, and supply market consolidation.
C) Technology advances.
D) Increased government regulation.
E) All of these choices.