AEA CERTIFICATION EXAM 2024 ACTUAL EXAM
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
How did Toyota revolutionize the manufacturing process? - ANSWERLean
manufacturing: made things cheaper, faster, better
They limited waste and had efficient production
Focused on continuous improvement
What are the features of the new model of progressive purchasing? - ANSWERCloser
relationships with important suppliers
Performing due diligence on suppliers before awarding long-term contracts
Conducting worldwide searches for the best sources of supply
Inviting key suppliers to participate in product and process development
Furthermore, executive managers began to require purchasing professionals to achieve
demanding performance improvements.
What business climate features are driving an increased focus on the supply base and
the responsibilities of purchasing? - ANSWER-An abundance of global competitors and
choices have conditioned customers to want higher quality, faster delivery, and products
and services tailored to their individual needs at a lower total cost.
-As the demand for new high-quality products increased, organizations had to become
flexible and responsive to modify existing products, services, and processes, or to
develop new ones to meet ever-changing customer needs.
-Companies began to realize that material and service inputs from suppliers had a major
impact on their ability to meet customer needs.
Define and understand the drivers behind outsourcing, offshoring, re-shoring and near-
shoring. - ANSWER-The availability of low-cost alternatives has led to unprecedented
shifts toward outsourcing and offshoring activities.
-Re-shoring involves bringing some sourcing back to the US
-Near-shoring involves evaluating suppliers located closer to United States. Such
suppliers may be located in Mexico, Canada and Central and South America.
What are the top 5 Gartner 2023 Supply Chain Top 25? - ANSWER-Schneider electric
-Cisco systems
-Colgate-Palmolive
-Johnson and Johnson
,-PepsiCo
Why is purchasing important? - ANSWER-increasing values and savings
-building relationships and driving innovation
-improving quality and reputation
-reducing time-to-market
-managing supplier risk
-generating economic impact
-contributing to competitive advantage
Increasing values and savings - ANSWERAs companies struggle to increase customer
value by improving performance, many companies are turning their attention to
purchasing and supply management.
Building relationships and driving innovation - ANSWER-Work jointly with suppliers to
pull costs out of the product or service and expect suppliers to contribute innovative
ideas that continually add value to a firm's products and services.
-For these relationships to work, both the buyer and supplier must agree to acceptable
paybacks from their investments
Improving quality and reputation - ANSWERIncreased proportion of parts, components,
and services outsourced further increases the importance of the relationships among
purchasing, external suppliers, and quality.
Reducing-time-to-market - ANSWERCompanies that involve suppliers early achieve an
average 20 percent improvement on materials costs, material quality, and product
development times.
Managing supplier risk - ANSWERSupply managers must continually monitor their
supply base for risk and develop business continuity plans to mitigate these risks.
Generating economic impact - ANSWERThe activity of global purchasing is an indicator
of economic expansion.
Contributing to competitive advantage - ANSWERFocus on effective purchasing has
become a critical way to gain competitive advantage
What is the average percentage of purchases to sales in the manufacturing sector? -
ANSWER55%
What is the evolution of the Sourcing Function? (Traditional) - ANSWER-Focus on prices
-Total cost of ownership
-Process-driver sourcing approach
-Compatibility objectives
-Involvement in specification definition phase
-Procurement skills
-Sourcing as adversarial zero-sum transaction
What is the evolution of the Sourcing Function? (Current) - ANSWER-Focus on value
-Total contribution to ownership
-Strategic intent-driver sourcing approach
, -Differentiation objectives
-Involvement in strategic decisions
-Business skills
-Sourcing aligned and intrinsically linked with business stakeholder
What is Supply Mngt? - ANSWER-a strategic approach to planning for and acquiring the
organization's current and future needs through effectively managing the supply base,
utilizing a process orientation in conjunction with cross-functional teams (CFTs) to
achieve the organizational mission.
-Supply management is a new way of operating, involving internal operations and
external suppliers to achieve advances in cost management, product development, cycle
times, and total quality control.
Supply mngt cont.d - ANSWER-Includes strategic orientation, cross functional groups,
process driven approach, supply base management
-Strategic responsibilities
-Activities which have a major long-term impact on firm performance
-Aligned with the overall mission and strategies of the firm
-Managing the supply base
-Work directly with suppliers to provide world-class performance
-A supercharged version of purchasing
What is meant by the term cross-functional? - ANSWERinvolves purchasing,
engineering, supplier quality assurance, the supplier, and other related functions
working together as one team, early on, to further mutual goals.
What are the 4 Pillars of purchasing and supply chain excellence? - ANSWERpeople,
organization, technology, performance management
People - ANSWER1. Supply chain professionals with the ability to:
o view the supply chain holistically
o analyze competitive markets
o manage critical relationships
o engage in fact-based decision making
o practice advanced cost management
o analyze big data
o understand e-business systems
Organization - ANSWER1. Organizational designs that feature:
o centrally led supply teams
o executive responsibility for coordinating purchasing, and supply chain activities
o cross-functional teams to manage supply chain processes
o supply strategy collaboration with business units
o executive buyer-supplier council to coordinate with the supplier
Technology - ANSWER1. Real-time supply chain planning and execution systems that
possess capabilities to perform:
o demand planning
o order commitment, scheduling, and production planning
o distribution and transportation scheduling
o materials replenishment
COMPLETE ACCURATE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
How did Toyota revolutionize the manufacturing process? - ANSWERLean
manufacturing: made things cheaper, faster, better
They limited waste and had efficient production
Focused on continuous improvement
What are the features of the new model of progressive purchasing? - ANSWERCloser
relationships with important suppliers
Performing due diligence on suppliers before awarding long-term contracts
Conducting worldwide searches for the best sources of supply
Inviting key suppliers to participate in product and process development
Furthermore, executive managers began to require purchasing professionals to achieve
demanding performance improvements.
What business climate features are driving an increased focus on the supply base and
the responsibilities of purchasing? - ANSWER-An abundance of global competitors and
choices have conditioned customers to want higher quality, faster delivery, and products
and services tailored to their individual needs at a lower total cost.
-As the demand for new high-quality products increased, organizations had to become
flexible and responsive to modify existing products, services, and processes, or to
develop new ones to meet ever-changing customer needs.
-Companies began to realize that material and service inputs from suppliers had a major
impact on their ability to meet customer needs.
Define and understand the drivers behind outsourcing, offshoring, re-shoring and near-
shoring. - ANSWER-The availability of low-cost alternatives has led to unprecedented
shifts toward outsourcing and offshoring activities.
-Re-shoring involves bringing some sourcing back to the US
-Near-shoring involves evaluating suppliers located closer to United States. Such
suppliers may be located in Mexico, Canada and Central and South America.
What are the top 5 Gartner 2023 Supply Chain Top 25? - ANSWER-Schneider electric
-Cisco systems
-Colgate-Palmolive
-Johnson and Johnson
,-PepsiCo
Why is purchasing important? - ANSWER-increasing values and savings
-building relationships and driving innovation
-improving quality and reputation
-reducing time-to-market
-managing supplier risk
-generating economic impact
-contributing to competitive advantage
Increasing values and savings - ANSWERAs companies struggle to increase customer
value by improving performance, many companies are turning their attention to
purchasing and supply management.
Building relationships and driving innovation - ANSWER-Work jointly with suppliers to
pull costs out of the product or service and expect suppliers to contribute innovative
ideas that continually add value to a firm's products and services.
-For these relationships to work, both the buyer and supplier must agree to acceptable
paybacks from their investments
Improving quality and reputation - ANSWERIncreased proportion of parts, components,
and services outsourced further increases the importance of the relationships among
purchasing, external suppliers, and quality.
Reducing-time-to-market - ANSWERCompanies that involve suppliers early achieve an
average 20 percent improvement on materials costs, material quality, and product
development times.
Managing supplier risk - ANSWERSupply managers must continually monitor their
supply base for risk and develop business continuity plans to mitigate these risks.
Generating economic impact - ANSWERThe activity of global purchasing is an indicator
of economic expansion.
Contributing to competitive advantage - ANSWERFocus on effective purchasing has
become a critical way to gain competitive advantage
What is the average percentage of purchases to sales in the manufacturing sector? -
ANSWER55%
What is the evolution of the Sourcing Function? (Traditional) - ANSWER-Focus on prices
-Total cost of ownership
-Process-driver sourcing approach
-Compatibility objectives
-Involvement in specification definition phase
-Procurement skills
-Sourcing as adversarial zero-sum transaction
What is the evolution of the Sourcing Function? (Current) - ANSWER-Focus on value
-Total contribution to ownership
-Strategic intent-driver sourcing approach
, -Differentiation objectives
-Involvement in strategic decisions
-Business skills
-Sourcing aligned and intrinsically linked with business stakeholder
What is Supply Mngt? - ANSWER-a strategic approach to planning for and acquiring the
organization's current and future needs through effectively managing the supply base,
utilizing a process orientation in conjunction with cross-functional teams (CFTs) to
achieve the organizational mission.
-Supply management is a new way of operating, involving internal operations and
external suppliers to achieve advances in cost management, product development, cycle
times, and total quality control.
Supply mngt cont.d - ANSWER-Includes strategic orientation, cross functional groups,
process driven approach, supply base management
-Strategic responsibilities
-Activities which have a major long-term impact on firm performance
-Aligned with the overall mission and strategies of the firm
-Managing the supply base
-Work directly with suppliers to provide world-class performance
-A supercharged version of purchasing
What is meant by the term cross-functional? - ANSWERinvolves purchasing,
engineering, supplier quality assurance, the supplier, and other related functions
working together as one team, early on, to further mutual goals.
What are the 4 Pillars of purchasing and supply chain excellence? - ANSWERpeople,
organization, technology, performance management
People - ANSWER1. Supply chain professionals with the ability to:
o view the supply chain holistically
o analyze competitive markets
o manage critical relationships
o engage in fact-based decision making
o practice advanced cost management
o analyze big data
o understand e-business systems
Organization - ANSWER1. Organizational designs that feature:
o centrally led supply teams
o executive responsibility for coordinating purchasing, and supply chain activities
o cross-functional teams to manage supply chain processes
o supply strategy collaboration with business units
o executive buyer-supplier council to coordinate with the supplier
Technology - ANSWER1. Real-time supply chain planning and execution systems that
possess capabilities to perform:
o demand planning
o order commitment, scheduling, and production planning
o distribution and transportation scheduling
o materials replenishment
