Chapter 3 Creating and Managing Supplier Relationships

A SRM strategy refers to a situation wherein a supplier's employee is permanently housed in the purchasing department of the buyer's organization.

F

It is critical that buyers and suppliers develop stronger relationships and partnerships based on a tactical rather than a strategic perspective.

F

It is illegal for corporations to provide their suppliers appreciation banquets to award performance.

F

When developing successful partnerships, it is best to avoid inter-personal business relationships between buyers and suppliers.

F

According to the text, only about half of companies recognize excellent performance with supplier awards and appreciation banquets.

T

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

T

Building Trust, Shared Vision and Objectives, Personal Business Relationships, Mutual Benefits and Needs are key factors that contribute to a lasting supplier partnership.

T

ISO 14000 is a family of international standards for environmental management.

T

The development of relationships with suppliers brings about changes that must be managed for a company to stay focused on their core businesses.

T

Unless an organization has a firm grasp of the key issues surrounding supplier relationships, it cannot reap the benefits of such relationships.

T

Which of the following is TRUE?

a. Performance metrics and personal business relationships are both keys to building successful partnerships.

Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:

a. Pre-transaction costs

When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:

a. Select the key dimensions of performance based on what is important to the end consumer

According to the text, the goal of a good performance evaluation system is to provide metrics that are:

a. Understandable, easy to measure, focused on value-added results

Which of the following is NOT important in developing a successful strategic alliance?

c. Developing efficient processes that will remain unchanged for the duration of the partnership

According to the textbook, Supplier Recognition Programs:

c. Encourage suppliers to keep their performance high

The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often do they give this award?

c. Every 5 years

According to the SCM profile Honda ___________ based on a supplier relations index developed by Planning Perspectives.

c. Ranked near the top in 2015

Direct benefits of ISO 14000 include:

c. Reduction of pollution emissions

According to the text, one of the most basic and successful approaches to protecting trade secrets is:

c. Requiring employees and vendors to sign non-disclosure agreements

Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain this information?

c. SRM

What type of major cost category is considered in the cost associated with placing and receiving the order?

c. Transaction Cost

The benefits of implementing an effective supplier certification program include all of the following EXCEPT:

b. Increasing supplier base

Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:

b. Post-transaction costs

Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:

b. SRM

Which of the following is NOT a reason for supplier recognition programs?

b. To select the best suppliers

Which of the following is important in developing successful relationships in a partnership?

d. All of these

According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:

d. Individualized objectives

An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:

d. Supplier Certification

In general, European companies prefer suppliers:

d. Who have ISO 9001 certifications