1. Cost management is no longer an integral part of purchasing and supply chain
management. (T/F) => False 2. The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring. (T/F) => False 3. __________ involves generating the materials release, contacting a supplier directly concerning changes, and monitoring the status of inbound shipments. => Material control 4. Direct materials => are those items provided by suppliers and used directly during production on service delivery. 5. Consumer behavior => Recent research indicates that all of the following are top knowledge areas for purchasers except ____________ 6. Logistics managers => Within the downstream portion of a supply chain, _______________ are responsible for the actual movement of materials between locations. 7. Supply management is a broader concept than purchasing. (T/F) True 8. According to the Institute for Supply Management, ___________ is the identification, acquisition, access, positioning, and management of resources and related capabilities an organization needs or potentially needs in the attainment of its strategic objectives. => Supply management 9. Purchasing is becoming less responsible for sourcing, indirect goods and services required by internal groups. (T/F) => False 10. Today's emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process. (T/F) => True 11. Utilize an electronic competitive bidding tool, work like an auction but in reverse => Reverse auction/e-auction 12. Work and information are managed across groups and between organizations. => Horizontal focus 13. One that consistently satisfies the performance and service standards defined by the buyer and responds to unexpected changes. => Preferred Supplier 14. Involves bringing sourinc back into the United States. => Re-shoring 15. A minor departure from an intended level of performance or nonconformance that is easily resolved and does not materially affect the required output. => Deficiency 16. Reverse supply chain_____ => Recalls, the goal is to rapidly identify and return those tained products back through the supply chain. Ex. defective automobiles, toys, dog food, and human food. 17. Process loss___ => Occurs when a team does not complete its task in the best or most efficient manner, or members are not motivated to employ their resources to create a successful outcome. 18. Express Warranty___ => Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation of the promise. 19. Collaboration___ => The process by which two or more parties adopt a high level of purposeful cooperation to maintain a trading relationship over time to achieve specified goals. 20. Sole supplier___ => There are no other approved suppliers of the product or service that the firm will accept. The purchaser has little power and is often at the mercy of the supplier 21. Suite of tools used to achieve efficiency in purchasing transactions. => E-procurement 22. Allows the buyer to terminate the contract event of persistently poor quality, delivery problems... on a blanket purchases. => Escape clause 23. Damages that result of the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract. => Liquidated Damages 24. A task that requires members to use a variety of higher-level skills, supports giving members regular feedback about performance, results in an outcome with significant effect on the organization and others outside the team, and others outside the team, and provides members autonomy for deciding how they will do the work. => Meaningful Task 25. If supply managers do not respond to the need of internal customers the confidence internal customers have in purchasing will diminish and the internal customer may negotiate contracts for themselves. => Maverick buying 26. Is when a situation arises when internal customer has a need that comes up suddenly/not planned and there is no pre existing supplier identified to provide the product/service required and must use spot buy → Spot => Đúng 27. Methods for communicating the user's requirements...best choice for standard items, requirements are well understood and there is common agreement between supply chain partners and certain terms mean → Description by industry standard/description by market grade => Đúng 28. Most advantageous where geographic concentration exists. Various facilities in the region join forces to negotiate with local and regional sources of common commodities. They purchase large-volume items common to all facilities. → Regional buying councils => Đúng 29. Performs many activities to ensure it delivers maximum value to the organization. Examples include: supplier identification and selection; buying, negotiation, and contracting; supply market research; supplier measurement and improvement; and purchasing systems development. (aka: supply management and strategic sourcing) → Ownership => Sai (Purchasing mới đúng) 30. Similar to councils except they tend to me more advisory in nature. they meet periodically and discuss strategies on the company's major purchased commodities. Will invite large suppliers in for discussions, negotiations, performance assessment, and forecast of purchase volumes for coming year → Corporate steering committees => Đúng 31. Sent to a supplier if the purchasing contract requires negotiation between the buyer and the seller. => request for proposal 32. Includes all of the directives, both explicit and implied, that designate the aims and ends of an organizational and the appropriate means used in their accomplishment. => Policy 33. A set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer. => Supply chain 34. Specifies the work that is to be completed, when it is needed, and what type of service provider is required. => statement of work 35. Used by transportation carriers to record the quantity of goods delivered to a facility and is used to help protect the carrier against wrongful allegations that the carrier somehow damaged, lost, or otherwise tampered with a shipment. => bill of lading 36. Re-shoring___ => Involves bringing some sourcing back to the United States. 37. Near-shoring___ => Involves evaluating suppliers located closer to the United States. 38. MRO items___ => include anything that does not go directly into an organization's product 39. Requisitioner___ => someone who is authorized by purchasing to complete the needs clarification process 40. Finished products___ => includes purchased items that require no major processing before resale to the end customers 41. Details any shipping or receiving discrepancies noted be the receiving department. => Received discrepancy report 42. The operating instructions detailing functional duties or tasks. => Procedure 43. Refers to the shared software and information that users access via the web. => Cloud computing 44. An activity that involves physically getting a product ready for transportation to the customer => Shipping 45. Someone with a significant stake in the effectiveness of purchasing's decision 46. near-shoring. => stakeholder 47. A business that is run or partially owned be an individual classified as a minority be the us government → minority business supplier => Đúng 48. Endorses a supply chain orientation and involves proactively managing the two way movement and coordination of goods, services, information, and funds from raw materials through end user. → supply management => Sai (supply chain management) 49. A specific activity contained within the category management strategy used to explore the market to identify competitive value → sourcing event => Đúng 50. Involves a communications standard that supports interorganizational electronic exchange of common business documents and information → EDI => Đúng 51. The selection, development, and maintenance of suppliers → traveling purchase requisition => Sai (supplier performance management) 52. States that success us a function of effectively managing a linked group of firms past first-level suppliers or customers. In fact, progressive firms understand that managing cost, quality, and deliver requires attention to suppliers that reside several tiers from the producer. => Extended Value Chain 53. Its goal is to rapidly identify and return these tainted products back through the supply chain. => Reverse Supply Chain 54. A higher-level recognition of the strategic value of managing operational activities and flows within and across a supply chain. => Supply Chain Orientation 55. Near-Shoring => The transfer of business or IT processes to companies in a nearby country, often sharing a border with your own country, where both parties expect to benefit from one or more of the following dimensions of proximity: geographic, temporal (time zone), cultural, linguistic, economic, political or historical linkages. 56. Organizational Design => Refers to the process of assessing and selecting the structure and formal system of communication, division of labor, coordination, control, authority, and responsibility required to achieve organizational goals and objectives, including supply chain objectives. 57. Cross-Functional => Involves purchasing, engineering, supplier quality assurance, the supplier, and other related functions working together as one team, early on, to further mutual goals. 58. Cloud Computing => Refers to the shared software and information that users access via the web. Rather than storing information on their own physical services or computer hard drives, users rely on servers that are maintained by the cloud computing software providers (e.g. IBM Smart Cloud). 59. Process Approach => Managers manage and control the processes that, make up their organizations, the interactions between these processes, and the inputs and outputs that i.e. these processes together. 60. Bring some sourcing back to the United States. => Re-Shoring 61. Those activities that have a major pace on the long-term performance of the organization. These long-term responsibilities are not pursued in isolation, but should be aligned with the overall missions and strategies of the organization. => Strategic Responsibilities 62. A provider of outsourced logistics services. Logistics services encompass anything that involves management of the way resources are moved to the areas where they are required. The term comes from the military. => Third Party Logistics Providers (3PLs) 63. This monthly survey of purchasing managers in both manufacturing and non- manufacturing sectors is closely monitored by the financial sector, and the results of both reports have the power to move financial markets. => ISM Report on Business 64. Composed of primary and support activities that can lead to competitive advantage when configured properly. The accumulation of these activities results in the total value added by the firm. => Value Chain 65. 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 => Đúng 66. A supply chain is a set of three or more organizations linked directly by one or more of the upstream or downstream flow of products, services, finances, and information from a source to a customer. 67. Anytime business is conducted a supply chain will exist. → Supply Management => Sai (Supply Chain) 68. Requires purchasing professionals to work directly with those suppliers hat are capable of providing world-class performance and advantages to the buyer. Think of supply management as a strategic and supercharged version of basic 69. purchasing. → Managing the Supply Base => Đúng 70. A functional group (i.e. a formal entity o the organizational chart) as well as a functional activity (i.e. buying goods and services). The purchasing group performs many activities to ensure it delivers maximum value to the organization. → Purchasing => Đúng 71. Look at saved images => The Extended Value Chain hoặc Cereal Value Chain Example 72. Factors Driving SCM: Low cost and wide availability of information (More closely links members of a supply chain); Higher levels of competition in domestic and international markets (Requires greater quickness, agility, and flexibility); Customer expectations and requirements (Constantly changing* and more demanding); Ability of an organization's supply chain to identify and mitigate risk (Minimize disruptions); Competition is now between supply chains, not just between companies 73. Why Purchasing Is Important => Increasing value 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 74. Real-Time Collaborative & Technology Capabilities => Supply chain planning software (Improve forecast accuracy, Optimize production scheduling, Reduce working capital costs, Shorten cycle times, Cut transportation costs, Improve customer service); Supply chain execution software (Obtain materials, Manage physical flows, Lean supply); Capture and share real-time or near real-time data across the supply chain (Global positioning systems (GPS), Internet-based systems, Bar codes, Radio frequency identification devices (RFID)) 75. Capable Human Resources => Supplier relationship management; Total cost analysis; Purchasing strategies; Supplier analysis; Competitive market analysis; Need for close collaboration with suppliers; Need for close internal coordination 76. Increasing Value and Savings => Suppliers have substantial impact on a firm's total cost; Many product features originate from suppliers; In manufacturing, purchased content is more than 55% of revenues; Avoiding costs through early involvement in product design stage 77. Building Relationships and Driving Innovation => Traditional approach is to bargain hard for price reductions; Newer approach is to conduct joint cost reduction with suppliers; Both buyer and supplier must benefit; Suppliers can contribute innovative ideas 78. New Competitive Environment => Increasing numbers of world class global competitors; Sophisticated customer base; More performance at lower cost (Widely available information source; Balance of power between buyers and suppliers; Greater levels of outsourcing) 79. Improving Quality and Reputation => Buyer focuses on core competencies and outsources non- core activities and materials; Need for ability to track materials back up through supplier's supply chain; Supplier quality --> product quality (Lapses in managing supplier quality can potentially tarnish a buyer's reputation) 80. Reducing Time-to-Market => Include suppliers early in product design process to take advantage of their expertise; Early supplier involvement can lead to an average of 20% improvement on material costs, material quality, and product development times 81. The Supply Chain Umbrella => Core Functions 82. Purchasing 83. Inbound transportation 84. Quality control 85. Demand and supply planning 86. Receiving, materials handling, and storage 87. Material or inventory control 88. Order processing 89. Production planning, scheduling, and control 90. Shipping/Warehousing/Distribution 91. Outbound transportation 92. Customer service 93. Language of Purchasing and SCM => Common Questions 94. Is purchasing different from supply management? 95. Are supply chains and value chains the same? 96. What is supply chain management? 97. What is an extended enterprise? 98. Enablers of Purchasing and SCM => (1) Human Resources - View the supply chain holistically - Manage critical - relationships - Analyze competitive markets - Engage in fact-based decision making - Practice advanced cost management - Understand e-business systems - Analyze big data - Utilize mobile devices (2) - Organizational Design - Centrally-led supply teams - Executive responsibility for coordinating purchasing and supply chain activities Collocation of supply personnel with internal customers - Cross-functional teams to manage supply chain processes - Supply strategy coordination and review sessions between business units Executive buyer-supplier council to coordinate with suppliers (3) - Information - Technology - Demand planning - Order commitment, scheduling, and production management - Distribution and transportation scheduling - Material replenishment - Reverse auctions - Requisition to pay systems - Intranets - Webinars and podcasts (4) - Measurement - Use data from visible sources - Quantify what creates value - Use goals that change over time - Rely on benchmarking to establish performance targets - Link to business goals and objectives - Feature efficiency and effectiveness measures - Assign ownership and accountability - A New Competitive Environment - Language of Purchasing and SCM 99. Why Purchasing Is Important Supply Chains and Value Chains 100. Typical Activities: Supplier identification and selection; Buying; Negotiation; Contracting; Supply market research; Supplier measurement and improvement; Purchasing systems development → Why Purchasing Is Important => Sai (Purchasing) 101. Assessing and selecting structure and formal system of communication; Division of labor; Coordination; Control; Authority; Responsibility / Ownership → 2. Proper Organizational 102. Getting the "right" quality; In the "right" quantity; At the "right" time; For the "right" price; From the "right" source → The Five Rights of Purchasing => Đúng 103. Are the basic components that suppliers must possess before they proceed to the next phase of the evaluation and selection process. => Entry qualifiers- 104. Proposal or expression by one person that he/she is willing to do something for certain terms. => Offer 105. Chief Purchasing Officer (CPO) has the authority for the majority of the organization's purchase expenditures. => Centralized 106. Suppliers receive first opportunity for new business => Preferred suppliers 107. White Box Design=> One extreme, the supplier is given blueprints and told to make the product from them. 108. Span of control => functional groups carry out certain duties on behalf of the organization 109. Vertical focus => work and information are managed up and down within functional groups 110. Strategic Supplier => even more important, and must ideally also be preferred 111. One of the most closely followed indicators of economic activity. This monthly survey of purchasing managers in both manufacturing and nonmanufacturing sectors is closely monitored by the financial sector and the results of both reports have the power to move financial markets. It is a change index and generally as rating over 50 indicates the economy is expanding. => ISM Report on Business 112. A group of operating units buys common items, typically because they produce common products. First identify common commodities and then appoint a lead negotiator (buyer) to have the largest expenditure power and most expertise in the commodities. => Lead division buying 113. Exploring, comparing, and contrasting data from multiple sources before you can validate it. => Triangulate- 114. A program that distributors market to manage their customer's inventory for them. => Supplier managed inventory- 115. Involves evaluating suppliers located closer to the United States(Mexico, Central and South America) → Near-shorting => Đúng 116. A discrepancy, nonconformance, or missing requirements that will have a significant negative impact on an important area of concern in an audit statement → Performance Problem => Đúng 117. Members from several functions in the organization → Third party logistics providers (3PLs) => Sai (Cross-functional teams) 118. Beginning in the 1950's: a national editorial board of legal scholars drafted the body of laws concerning business transactions, which was intended to make business transactions regular and predictable. The goal was to reduce the number of state-by- state variations. The resulting code was the UCC. In 1952, every estate (except Louisiana) adopted the UCC. The UCC does NOT APPLY to international contracts. → Policy => Sai (Uniform Commercial Code) 119. World War II introduced a new period in purchasing history. The emphasis on obtaining required (and scarce) materials during the war influenced a growth in purchasing interest => The War Years (1940-1946) 120. A set of three or more organizations linked directly by one or more of the upstream or downstream flows of products from a source to a customer. => Supply chain 121. Management has limited resources available to manage the purchasing process, these may include employees working within the department, budgeted funds, time, information, and knowledge. => Purchasing management 122. (1) select suppliers that are competitive. (2) identify new suppliers that have potential for excellent performance and develop closer relationships. (3) improve existing suppliers. (4) develop new suppliers that aren't competitive. => Objective 3 123. Period 2: Growth of Purchasing Fundamentals (1900-1939) => Purchasing gained importance during World War I because of its role in obtaining vital war materials. 124. The procurement of raw material versus buying finished or semi finished goods 125. Period 6: The Global Era (Late 1970s-1999) => competition has become so intense so quickly, global firms increasingly captured world market share and emphasized different strategies, the spread and rate of technology change 126. Period 4: The Quiet Years (1947-Mid-1960s) => The emphasis during the postwar years and throughout the 1960s was on satisfying consumer demand and the needs of a growing industrial market, there was no denying that other disciplines such as marketing and finance overshadowed purchasing. 127. Period 5: Materials Management Comes of Age (Mid-1960s- Late 1970s) => The behavior of purchasing during this period was notable. Purchasing managers emphasized multiple sourcing through competitive bid pricing and rarely viewed the supplier as a value-added partner. (Vietnam war) 128. Period 7: Integrated Supply Chain Management (Beyond 2000) => Purchasing and supply chain management today reflects a growing emphasis concerning the importance of suppliers. Supplier relationships are shifting from an adversarial approach to a more cooperative approach with selected suppliers. 129. First, the changing technology. Second, the importance of purchasing. Third, customer requirements. => Three conclusions about 21st-century purchasing 130. Purchasing function fails to develop strategies. They fail because they don't participate in meetings/ slow to recognize benefits => Objective 6: Develop Integrated Purchasing Strategies. 131. Identifying suppliers to realize supply chain performance that is better than that of competitors. => Process approach 132. Purchasing must communicate closely with other functional groups, which are purchasing's internal customers (stakeholders) => Objective 4: Develop aligned goals with internal functional stakeholders. 133. Work directly with suppliers to provide world-class performance => Managing the supply base 134. Obtain goods and services in response to internal needs. → The objectives of a world- class purchasing organization => Đúng 135. The selection, development, and maintenance of supply, a process that is sometimes described as supply base management. → Objective 6: Develop Integrated Purchasing Strategies. => Sai (Objective 3: Develop Supply Base Management.) 136. Functional group and activity that performs many activities to ensure it delivers maximum value to the organization. → Purchasing => Đúng 137. Activities that have a major impact on longer-term performance of the organization. → Managing the supply base => Sai (Strategic responsibilities) 138. Railroads were vital to the country's ability to move goods from the more developed Eastern and Midwestern markets to less developed Southern and Western markets → Period 1: the early years (1850-1900) => Đúng 139. (1) LOW COST and WIDE AVAILABILITY of information (2) Higher levels of competition in domestic and international markets (3) CUSTOMER EXPECTATIONS and requirements (4) Ability of an organization's supply chain to identify and mitigate risk (5) Competition is now between supply chains, not just between companies => Factors Driving SCM 140. Developing this is a way to mitigate risks with suppliers => business continuity plans 141. This supply management technique is defined as viewing suppliers as an extension of the buying company and sharing information with them => cross-functional 142. Identifying, evaluating, selecting, managing, and developing suppliers to improve performance => Process approach 143. This supply management approach involves working directly with suppliers to provide world-class performance => Managing the supply base 144. Organizational design => These are functions of this supply chain enabler: Assessing and selecting structure and formal system of communication; Division of labor; Coordination; Control; Authority; Responsibility / Ownership 145. Supply chain orientation => The strategic value of managing operational activities and flows within and across a supply chain 146. Activities which have a major long-term impact on firm performance; Aligned with overall mission and strategies of firm => Strategic responsibilities 147. This is a closely followed monthly national economic indicator. It's an index where >50 means economy is expanding and <50 means it is contracting => ISM Report on Business 148. Why Purchasing is Important? => i) INCREASING value and savings ii) Building relationships and driving innovation iii) Improving quality and reputation iv) Reducing time-to-time market v) Managing supplier risk vi) Generating economic impact 149. Lapses in managing supplier quality can potentially tarnish a buyer's reputation. This is why supplier quality directly leads to ______________ => product quality 150. Includes Human Resources, Organizational Design, Information Technology, and Measurement → Enablers of Purchasing and SCM => Đúng 151. These are functions of this supply chain enabler: Supplier relationship management; Supplier analysis; Need for close collaboration with suppliers; Need for close internal coordination → Measurement Systems => Sai (human resources) 152. Developing business continuity plans to mitigate risk is a good way to → business continuity plans => Sai (manage supplier risk) 153. Introducing suppliers early in the product design process to take advantage of their expertise is a good way to reduce _______________. (On average, up to 20% improvement) → time-to-market => Đúng 154. Right: quality, quantity, time, price, source → Five Rights of Purchasing => Đúng 155. Used to provide very detailed descriptions of the characteristics of an item or service => description be specification 156. Include the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material => production support items 157. Involves the selection and management of external carriers or the management of internal private fleets of carriers. => Transportation management 158. Helps obtain materials and manage physical flows from suppliers through downstream distribution to ensure that customers receive the right products at the right location, time, and cost => Execution software 159. Customer service => Includes a wide set of activities that attempt to keep a customer satisfied with a product or service 160. Supply chain management => Endorses a supply chain orientation and involves proactively managing the two way movement and coordination of goods, services, information, and funds from raw materials through end user. 161. Procure-to-pay cycle => Includes all of the steps required in the purchasing process, from the initial identification of requirements, to the procurement/purchasing of the item, through the receipt of the goods, and finally, to the payment of the supplier once the goods are received 162. Request for quotation => Invites suppliers to submit a bid for a purchasing contract 5. contract management 163. Contract management => a process associated with defining the contract, defining roles and responsibilities of both parties, and advising when to modify and ensure appropriate escelation 164. One who has demonstrated its performance capabilities through previous purchase contracts and therefore receives preference during the supplier selection process => preferred supplier 165. A cost for which suppliers are liable in the event of nonperformance, includes the cost of material rework, repackaging for return shipment, additional material handling costs, return shipping costs, or costs associated with lost of delayed production => charge-back 166. The process of taking demand data and developing a supply, production, and logistics network capable of satisfying demand requirements. => supply planning 167. At a minimum this should include a detailed description of the material or service, the quantity, date required, estimated costs, and authorization => Purchase requisition 168. This states that success is a function of effectively managing a linked group of firms past first-level suppliers or customers. => Extended enterprise concept 169. transportation management 170. Used when an internal customer has need that comes up suddenly, which is not planned for and for which there is no preexisting supplier identified to provide the product or service required → spot buy => Đúng 171. Formal entity on the organizational chart → electronic funds transfer => Sai (functional group) 172. Provided by the supplier, details the content of a shipment and contains the description and quantity of the items in a shipment → minority business supplier => Sai (material packing slip) 173. Focuses attention on the outcomes the customer wants, not on the precise configuration of the product or service → description by brand => Sai (description be performance characteristics) 174. The routine ordering and follow-up of basic operational supplies is a strategic responsibility (T/F) => false 175. In Period 4 of the evolution of purchasing and supply chain management, firms faced stable competition and had access to abundant material - conditions that historically have diminished the overall importance of purchasing (T/F) => true 176. Competition today is no longer between firms; it is between the supply chains of those firms (T/F) => true 177. According to Porter, a firm's value chain is composed of primary and support activities that can lead to competitive advantage when configured properly (T/F) => true 178. There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance (T/F) => false 179. The key to the success of any company is the quality of its employees (T/F) => true 180. In the manufacturing sector, the percentage of purchases to sales averages 55 percent (T/F) => true 181. Most of the features that make their way into final products originate with suppliers (T/F) => false 182. Distribution management involves the management of packaging, storing, and handling of materials at receiving docks, warehouses, and retail outlets (T/F) => true 183. Global sourcing is a requirement and no longer a luxury for most firms (T/F) → true => Đúng 184. Purchasing and supply management has a major impact on product and service quality (T/F) → false => Sai 185. The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment (T/F) → false => Đúng 186. An abundance of competitors and choices have conditioned customers to want higher quality, faster delivery, and products and services tailored to their individual needs at a higher total cost (T/F) → true => Sai (false) 187. Supply chain management does not require the coordination of activities and flows that do not extend across boundaries (T/F) → false => Đúng 188. Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups (T/F) → false => Đúng 189. Sophisticated customers, both industrial and consumer, no longer talk about price increases - they demand price reductions (T/F) → false => Sai (true) 190. The process of determining the appropriate number and mix of suppliers to maintain. Also referred to as rightsizing, it usually refers to reducing the number of suppliers used. => Supply Base Optimization 191. "confidential information" and is a very broad category of intellectual property. Any information believed to be confidential and important to an organization can be deemed to be a trade secret or confidential information. => Trade Secrets 192. Electronic transfer of purchase documents between the buyer and seller and can help shorten order cycle time. => Electronic acknowledgement and receipt 193. The ability to act ethically, listen effectively, communicate, and use creative problem solving. The ability to drive relationships is critical for firms seeking to build strong integration with internal business functions, as well as with external suppliers. => Relationships Management (RM) Skills- 194. Example: purchasing personnel and internal customer work together. => Co-Location 195. Financial Risk Management => As the continual monitoring of the strength of suppliers financial condition to insure their ability to meet the purchaser's performance requirements for products or services. 196. Description by specification. => Organizations may need to provide very detailed descriptions of the characteristics of an item or service (characteristics = material used, manufacturing/service steps required, physical dimensions of product) 197. Consideration => Something of value in the formation of the contract that gives it legal validity. 198. Material packing slip => Supplier provides the slip and t details the contents of shipment (description and quantity of items in shipment, reference specific purchase order and material release number for tracking and auditing purposes) 199. Integrated Supply => A distributor is awarded a longer-term contract. Integrated suppliers are given access to the purchasers demand data and are expected to maintain certain levels of inventory and customer service on the contracted items 200. Has demonstrated its performance capabilities through previous purchase contracts and, therefore receives preference during the supplier selection process. => Preferred Supplier- 201. Purchase contract requires negotiation between buyer and seller the purchasing sends this form => Request for proposal 202. The process of identifying potential negative events, assessing the likelihood of their occurrence, heading off these events before they occur or reducing the probability they will occur and making contingency plans to mitigate the consequences if they do occur. => Risk management 203. Combines a centralized approach for purchased items common to several business units and a decentralized approach to unique requirements → Consideration => Sai (Center-led) 204. Internal customers because they have a significant stake in the outcome of purchasing decisions → Stakeholders => Đúng 205. Person or entity who has been authorized to act on behalf of some other person or entity. (Purchasing manager is typically considered to be a general agent for the buying firm [the principal]). → Agent => Đúng 206. The idea that organizations and institutions have an obligation to society that extends beyond compliance with regulations in considering the broader affects of their actions. → Corporate Social Responsibility => Đúng 207. Purchasing manager sends this form to supplier. => Request for quotation 208. Includes all directives, whether explicit or implied, that designate the aims and ends of an organization and the appropriate means used in their accomplishment. => Policy 209. What is globalization? => "The playing field has been leveled" 210. What is Procurement? => The buying process 211. What is in-sourcing? => Bringing an outside firm to do work within your comany 212. What is outsourcing? => When a companies employees are abroad 213. What is Production? => The make process (assembly and manufacturing) 214. Why is transformation important? => So the business can survive and stay competitive What is Storing? => Where the product will be placed until needed 215. What is Distribution? => The movement of products across the supply chain 216. What is another name for moving? => Distribution 217. What are the four factors driving change in the business world? => Globalization; Technology; Organizational Consolidation; The Empowered Consumer 218. here is lots of outsourcing occurring? => India China 219. When and why did Supply Chain get popular? => In the 1990's by CEO's (Chief Executive Officers) and CFO's (Chief Financial Officers) who wanted to save money and make their company more efficent 220. What are the areas of Supply Chain? => Planning and Forecasting Purchasing; Product; Assembly Moving; Storing; Tracking Products 221. How does Supply Chain affect your life? => All activities that take place to get a product in your hands from raw material to final product 222. What is another name for Purchasing? => Procurement 223. What are benefits of outsourcing? => Cost; Increased Efficiency; Focus on Core Area; Save on Infrastructure and Technology; Access to Skilled Resources; Time Zones; Faster and Better Service 224. What is BRICS? => Brazil, Russia, India, China, South Africa 225. What types of jobs get outsourced? => Call Centers; Manufacturing; Writing; Graphic; Design; IT Support; Security 226. What is another name for Supply Chain? => Logistics 227. What are benefits of in-sourcing? => Greater Control; Communication Flows; Quality; Best Practices