GSCM 201 Final Exam Questions and
Answers 100% Pass
What is supplier relationship management? - ✔✔SRM involves taking care of the most
important suppliers. It also includes the
overall management and strategic decision
making that goes into a company's
purchasing strategy.
What are some sources for suppliers? - ✔✔Trade journals, company employees, and the
internet are all sources for suppliers
What do supply chains compete against? - ✔✔Other supply chains! It is supply chain vs
supply chain, not company vs company. The better supply chain generally wins.
What is a Transactional/Arms-length supplier relationship? - ✔✔This is a typical
vendor relationship.
Virtually no relationship or collaboration between companies. This is appropriate for
certain types of transactions, like when a company simply needs the best deal
Katelyn Whitman, All Rights Reserved © 2025 1
,TRANSACTIONAL
What is a Collaborative/Strategic Alliance supplier relationship? - ✔✔Synergistic
relationship.
Reduces uncertainty, improves comm, increases loyalty, establishing vision
Implies heavy resource commitment, exchange of info, high costs with switching
suppliers
RELATIONAL
What is a partner supplier relationship? - ✔✔A middle-level relationship. Collaborative,
but not as deep as alliance.
What is the essence of Kraljic's Matrix? - ✔✔Buyers should base supplier management
strategy off their category's risk and profitability impact.
Understanding suppliers is crucial due to the dependence companies have on them.
Profit impact is Y-axis, Supply risk is X-axis
Katelyn Whitman, All Rights Reserved © 2025 2
, What are leverage items in Kraljic's matrix? - ✔✔TOP LEFT (High profit impact, low
supply risk)
Exploitation of full purchasing power, with targeted pricing strategies/negotiations.
Abundant supply available.
What are non-critical items in Kraljic's matrix? - ✔✔BOTTOM LEFT (low profit impact,
low supply risk)
Like OFFICE SUPPLIES. You can get them from lots of different suppliers
Product standardization, process efficiency (ex: automated purchasing), abundant
supply
What are strategic items in Kraljic's matrix? - ✔✔TOP RIGHT (high profit impact, high
supply risk)
Limited suppliers; not a lot of people can produce these
Development of long-term relationships, collaboration and innovation, natural scarcity
Katelyn Whitman, All Rights Reserved © 2025 3
Answers 100% Pass
What is supplier relationship management? - ✔✔SRM involves taking care of the most
important suppliers. It also includes the
overall management and strategic decision
making that goes into a company's
purchasing strategy.
What are some sources for suppliers? - ✔✔Trade journals, company employees, and the
internet are all sources for suppliers
What do supply chains compete against? - ✔✔Other supply chains! It is supply chain vs
supply chain, not company vs company. The better supply chain generally wins.
What is a Transactional/Arms-length supplier relationship? - ✔✔This is a typical
vendor relationship.
Virtually no relationship or collaboration between companies. This is appropriate for
certain types of transactions, like when a company simply needs the best deal
Katelyn Whitman, All Rights Reserved © 2025 1
,TRANSACTIONAL
What is a Collaborative/Strategic Alliance supplier relationship? - ✔✔Synergistic
relationship.
Reduces uncertainty, improves comm, increases loyalty, establishing vision
Implies heavy resource commitment, exchange of info, high costs with switching
suppliers
RELATIONAL
What is a partner supplier relationship? - ✔✔A middle-level relationship. Collaborative,
but not as deep as alliance.
What is the essence of Kraljic's Matrix? - ✔✔Buyers should base supplier management
strategy off their category's risk and profitability impact.
Understanding suppliers is crucial due to the dependence companies have on them.
Profit impact is Y-axis, Supply risk is X-axis
Katelyn Whitman, All Rights Reserved © 2025 2
, What are leverage items in Kraljic's matrix? - ✔✔TOP LEFT (High profit impact, low
supply risk)
Exploitation of full purchasing power, with targeted pricing strategies/negotiations.
Abundant supply available.
What are non-critical items in Kraljic's matrix? - ✔✔BOTTOM LEFT (low profit impact,
low supply risk)
Like OFFICE SUPPLIES. You can get them from lots of different suppliers
Product standardization, process efficiency (ex: automated purchasing), abundant
supply
What are strategic items in Kraljic's matrix? - ✔✔TOP RIGHT (high profit impact, high
supply risk)
Limited suppliers; not a lot of people can produce these
Development of long-term relationships, collaboration and innovation, natural scarcity
Katelyn Whitman, All Rights Reserved © 2025 3
