Question 1

A long-term contract does not provide an incentive for a supplier to invest in new plants and equipment.

Accepted Answer

A long-term contract provides stability and predictability for a supplier, which can encourage them to invest in new plants and equipment to improve their efficiency and meet the needs of the customer over time.

Question 2

The use of cross-functional sourcing guarantees a successful outcome to a project or assignment.

Accepted Answer

Cross-functional sourcing can improve collaboration and bring diverse perspectives, but it does not guarantee success as other factors like execution, resources, and market conditions also play a role.

Question 3

Many firms are now co-locating supply management personnel directly at operations locations so supply management can respond quickly to operations' needs.

Accepted Answer

This is a common practice in supply chain management, known as supply chain integration, where supply management personnel work closely with operations to respond quickly to emerging supply chain issues or disruptions. This helps to improve supply chain performance and reduce costs.

Question 4

Because the links between operations and supply management have been so close,it is not unusual for supply management to report directly to operations.

Accepted Answer

The statement is true. The close relationship between operations and supply management often leads to supply management reporting directly to operations.

Question 5

The need for confidentiality regarding financial,product,and process information is the most frequently cited reason for not developing closer supplier relationships.

Accepted Answer

Confidentiality is a common reason for maintaining a certain level of distance between a company and its suppliers, preventing the sharing of sensitive information that could be used by competitors.

Question 6

Perhaps the most important and challenging linkages exist between supply management and marketing/sales.

Accepted Answer

The answer of Perhaps the most important and challenging linkages...

Question 7

Closer relationships interest all suppliers.

Accepted Answer

Not all suppliers may be interested in closer relationships due to varying business strategies, priorities, or resource constraints.

Question 8

In collaboration,the relationship is bilateral; both parties have the power to shape its nature and future direction over time.

Accepted Answer

In collaboration, both parties have an equal say and therefore the relationship is bilateral. Both parties can shape its nature and future direction over time.

Question 9

Experience reveals that cross-functional sourcing teams are usually part-time/continuous assignments,making the use of sourcing teams a challenging way to work.

Accepted Answer

Cross-functional sourcing teams typically involve individuals from different departments or areas within a company who come together to work on a sourcing project. Because these team members have other responsibilities and duties within their own roles, their involvement in the sourcing team is usually a part-time or continuous assignment. This can make it challenging to coordinate everyone's schedules and ensure that the team is working efficiently and effectively.

Question 10

Membership on a team can have negative effects on individuals.

Accepted Answer

Membership on a team can lead to negative effects such as groupthink, social loafing, and conflict within the team. Additionally, some individuals may feel pressure to conform to the group's norms and may not express their own opinions or ideas.

Question 11

Supply management usually maintains significant data about individual activity costs that can increase total cost.

Accepted Answer

The answer of Supply management usually maintains significant data about...

Question 12

Although outsourcing products through low cost country sourcing environments or contract manufacturers is very different from North American buyer-seller situations,they can and should be treated the same.

Accepted Answer

Outsourcing products through low cost country sourcing environments or contract manufacturers require different considerations and strategies than buying and selling within North America. Therefore, they cannot be treated the same.

Question 13

Integration does not require that people create a common understanding of the end goal or purpose.

Accepted Answer

Integration requires people to have a common understanding of the end goal or purpose in order to merge different parts or elements together into a unified whole. Without a shared vision of what is being integrated, it can lead to confusion, conflicts, and inefficiencies.

Question 14

Purchasing offices were once corporate backwaters,filled with people who didn't dream of advancing to the top rungs of their organization.

Accepted Answer

Purchasing offices were typically viewed as support functions rather than core business areas, and therefore not seen as a pathway to upper management positions. However, this has changed in recent years as procurement has gained greater strategic importance and the role of procurement professionals has evolved.

Question 15

Many supply management groups are recruiting commodity managers with very strong technical backgrounds,who are able to talk the talk and walk the walk alongside their engineering counterparts.

Accepted Answer

The statement clearly states that many supply management groups are recruiting commodity managers with strong technical backgrounds, indicating that the statement is true.

Question 16

A team may pressure an individual to support or conform to a lower production norm than the individual's personal norm.

Accepted Answer

This is known as social loafing, where individuals may put in less effort or try to conform to the group's norms to avoid standing out or being seen as a nonconformist.

Question 17

Successfully using teams does not require extensive planning before a team should be allowed to pursue an assignment.

Accepted Answer

Successful team performance requires extensive planning and preparation before the team is allowed to pursue an assignment. This includes setting clear goals, defining roles and responsibilities, establishing communication protocols, and ensuring that team members have the necessary resources and support to carry out their roles effectively. Without this preparation, teams may struggle to work cohesively and effectively, leading to delays or a failure to meet project objectives.

Question 18

Perhaps the greatest benefit of team interaction is that once a team makes a decision,implementing the decision often becomes easier due to group buy-in.

Accepted Answer

When a team collaboratively comes to a decision, each member is more likely to be committed to that decision and feel ownership over it. This makes it easier to mobilize and execute the decision because everyone is on the same page and working towards the same goal.

Question 19

A shift to closer,more trusting buyer-supplier relationships is easy.

Accepted Answer

A shift to closer, more trusting buyer-supplier relationships requires effort and time from both parties to establish trust, define clear expectations, and build effective communication and collaboration. It may also require changes in organizational cultures, structures, and policies. Therefore, it is not an easy process but a worthwhile one for the long-term benefits it can bring.

Question 20

External relationship management begins with internal relationship management,internal alignment is key.

Accepted Answer

External relationship management cannot be successful without first having strong internal relationships and alignment within an organization. This means that employees must be aligned with the company's goals, values, and vision in order to effectively communicate and build relationships with external stakeholders.

Quiz 4: Supply Management Integration for Competitive Advantage