BUAD 331 Exam 2 UTK |123 Questions
with Answers
Purchasing Professionals - -Keep the company running smoothly by
providing an uninterrupted flow of supply to build products and deliver
services.
- Procurement/Supply Management - -The strategic approaches and
processes used to secure needed inputs into the organization to create
relevant value.
- Sourcing - -The process involved in identifying the requirements, locations,
and identity of specific companies and providers that may be used to acquire
various inputs required to create value.
- Purchasing - -The process used to actually make a buy from a source
- Commodity - -The inputs (or things we buy) required to create value
Ex. Materials, sub, assembled components, equipment services.
- Successful supply chain managers are experts in four areas - -Resources,
suppliers, processes, technologies
- When purchasing and supply management works well within an
organization... - -The company acquires the best resources from around the
world, which allow them to compete on cost, quality, and innovation
- Procurement strategy - -Allows the business to complete its overall goal,
whether it involves differentiated product, accosted advantage, or some
blend of the two.
-Supports the desired competitive business-level strategies
-Complements other functional areas
- A dollar save by purchasers... - -In material costs as a dollar added to net
income
- Primary focus of purchasing - -To support the firms operational
requirements by ensuring an uninterrupted flow of appropriate quality
materials, services, and products
- Direct materials - -Materials that go directly into the product sold
downstream
Ex. Ball bearings, fasteners, engine components.
, - Indirect materials - -Materials necessary to maintain operations
Ex. Office supplies, maintenance/repair.
- Services - -Advertising, contract, labor, logistics
- Purchasing as a function contributes to both the________ and _________ of a
business - -Top and bottom line
- How purchasing affects the top line - --In innovation, using the capabilities
of its supply base in a way that brings in the best ideas
-Improve quality with suppliers
-Improve delivery
-Improve and develop target cost and product cost
- Other way purchasing can contribute - --developing systems and
processes to gather competitive market intelligence
-Strategic role in maintaining the organizations brand and commitment to
social responsibility.
- Michael Porter five forces model - -Focuses on predicting buyer and
supplier behavior, as well as understanding current market conditions
- Threat of new entrants - -Purchasing professionals must understand the
barriers to market entry
- Bargaining power of suppliers - -Power of suppliers to negotiate prices,
and allow access to innovation; fewer suppliers, more supplier, bargaining
power
- Bargaining power of buyers - -Power of buyers to negotiate price, access,
innovation; more demand for a buyer, the more power of the buyer has
- Threat of substitutes - -Purchasers must understand the possible
substitutes for suppliers or services, and the risk involved in substitutes
- Rivalry among existing competitors - -High when competition is fierce in a
market and low when competitors are more complacent
- Strategic sourcing process - -Process needed to drive procurement
decisions and enable the management of commodities with a portfolio view
- Step one: market research - -Conduct a market analysis to gain a clear
understanding of supply and demand trends in markets. Conduct SWOT
analysis.
with Answers
Purchasing Professionals - -Keep the company running smoothly by
providing an uninterrupted flow of supply to build products and deliver
services.
- Procurement/Supply Management - -The strategic approaches and
processes used to secure needed inputs into the organization to create
relevant value.
- Sourcing - -The process involved in identifying the requirements, locations,
and identity of specific companies and providers that may be used to acquire
various inputs required to create value.
- Purchasing - -The process used to actually make a buy from a source
- Commodity - -The inputs (or things we buy) required to create value
Ex. Materials, sub, assembled components, equipment services.
- Successful supply chain managers are experts in four areas - -Resources,
suppliers, processes, technologies
- When purchasing and supply management works well within an
organization... - -The company acquires the best resources from around the
world, which allow them to compete on cost, quality, and innovation
- Procurement strategy - -Allows the business to complete its overall goal,
whether it involves differentiated product, accosted advantage, or some
blend of the two.
-Supports the desired competitive business-level strategies
-Complements other functional areas
- A dollar save by purchasers... - -In material costs as a dollar added to net
income
- Primary focus of purchasing - -To support the firms operational
requirements by ensuring an uninterrupted flow of appropriate quality
materials, services, and products
- Direct materials - -Materials that go directly into the product sold
downstream
Ex. Ball bearings, fasteners, engine components.
, - Indirect materials - -Materials necessary to maintain operations
Ex. Office supplies, maintenance/repair.
- Services - -Advertising, contract, labor, logistics
- Purchasing as a function contributes to both the________ and _________ of a
business - -Top and bottom line
- How purchasing affects the top line - --In innovation, using the capabilities
of its supply base in a way that brings in the best ideas
-Improve quality with suppliers
-Improve delivery
-Improve and develop target cost and product cost
- Other way purchasing can contribute - --developing systems and
processes to gather competitive market intelligence
-Strategic role in maintaining the organizations brand and commitment to
social responsibility.
- Michael Porter five forces model - -Focuses on predicting buyer and
supplier behavior, as well as understanding current market conditions
- Threat of new entrants - -Purchasing professionals must understand the
barriers to market entry
- Bargaining power of suppliers - -Power of suppliers to negotiate prices,
and allow access to innovation; fewer suppliers, more supplier, bargaining
power
- Bargaining power of buyers - -Power of buyers to negotiate price, access,
innovation; more demand for a buyer, the more power of the buyer has
- Threat of substitutes - -Purchasers must understand the possible
substitutes for suppliers or services, and the risk involved in substitutes
- Rivalry among existing competitors - -High when competition is fierce in a
market and low when competitors are more complacent
- Strategic sourcing process - -Process needed to drive procurement
decisions and enable the management of commodities with a portfolio view
- Step one: market research - -Conduct a market analysis to gain a clear
understanding of supply and demand trends in markets. Conduct SWOT
analysis.
