Management Key Concepts and
Strategies 2026 Exam
Questions and Answers |
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Why is supply management crucial for companies? - ANSWER ✔✔To
compete globally and increase profitability through effective sourcing.
What is the profit leverage effect in supply management? - ANSWER
✔✔It represents a major opportunity to increase profitability by managing
sourced goods and services.
, What is the strategic sourcing process? - ANSWER ✔✔It involves
improving long-term business planning by understanding sourcing
needs, developing strategies, selecting suppliers, and managing the
supply base.
What is the difference between strategic sourcing and purchasing
activities? - ANSWER ✔✔Strategic sourcing involves long-term
negotiations by commodity managers, while purchasing follows tactical
procedures by manufacturer managers.
What are the six steps in the strategic sourcing process? - ANSWER
✔✔1. Assess opportunities, 2. Profile internally and externally, 3.
Develop the sourcing strategy, 4. Screen suppliers, 5. Conduct supplier
selection, 6. Negotiate and implement agreements.
What is spend analysis? - ANSWER ✔✔The application of
quantitative techniques to purchase data to understand spending
patterns and identify improvement opportunities.
What is the make or buy decision in sourcing? - ANSWER ✔✔It
involves deciding whether to produce something internally or outsource
it.