MNP3701 Assignment 1 Semester 1 2023 level Questions and Answer

supply management - -the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services -global sourcing financial impacts - -profit leverage effect - every dollar saved in purchasing lowers the cost of goods sold by one dollar and increases pretax profit by one dollar every dollar saved in purchasing also lowers inventory and, as a result, total assets think: profit margins and ROA -global sourcing performance impact - -cost isn't the only consideration; purchased goods and services can have a major effect on other performance dimensions including quality and delivery performance -strategic sourcing process steps - -1. assess opportunities 2. profile internally and externally 3. develop the sourcing strategy 4. screen suppliers and create selection criteria 5. conduct supplier selection 6. negotiate and implement agreements -step 1: assess opportunities - -spend analysis - the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement -step 2: profile internally and externally - -category profile - understanding all aspects of a particular sourcing category that could ultimately have an impact on the sourcing strategy industry analysis - profiling the major forces and trends that are impacting an industry, including pricing, competition, regulatory forces, substitution, technology changes, and supply/demand trends -step 3: develop the sourcing strategy - -the make-or-buy decision and total cost analysis -step 4: screen suppliers and create selection criteria - -criteria include: process and design capabilities, management capability, financial condition and cost structure, and longer-term relationship potential