Chapter 13

Steps for developing a weighted supplier evaluation point system in order

1. Pinpoint critical evaluation criteria 2. Determine the significance for each of the criteria 3. Develop guidelines for supplier rating

How many strategic alliances should and organization have?

6-20

What are the TWO external links that supply chain management must monitor? A) Link between the buying organization and customers B) Link between the buying organization and suppliers C) Link between the supplying organization and customers

A, B

ABC manufacturing has started conducting supplier performance evaluations in the hopes of (multiple answers) A) decreasing cycle time B) decreasing costs C) improving quality D) decreasing service performance

A, B, C

What are some concerns seen with partnerships and alliances? (multiple answers) A) Fewer improvement initiatives from sole suppliers. B) Partners may take advantage of the preferred status. C) High risk due to single sourcing. D) Improved quality and delivery terms.

A, B, C

Where can supply professionals seek out information for informal evaluations of their suppliers? (multiple answers) A) conversations at professional meetings B) information in the media C) personnel in their own organizations D) sophisticated software applications

A, B, C

Semiformal supplier conferences can offer buyers and suppliers (multiple answers) A) a look at future expectations B) discussions on long-term plans C) a meeting to sign long-term contracts D) a review of past performance

A, B, D

ESI offers suppliers the ability to (multiple answers) A) make decisions about future investments. B) slow down product design and market introduction. C) consider buyer needs when making human resources decisions. D) consider buyers needs for innovation.

A, C, D

The 2000s brought a focus of (multiple answers) A) local supply chains B) global supply chains C) resilient and sustainable supply chains D) operational supply chains

B, C

Exceptional suppliers are those that can (multiple answers) A) react positively to initiatives for improvement. B) anticipate operational needs of the purchaser. C) predict strategic requirements of the purchaser. D) meet or exceed buyer needs.

B, C, D

Locating a suppliers employee in the buying organization offers the benefits of (multiple answers) A) increased sales costs B) reduced admin costs C) reduced sales costs D) improved communication

B, C, D

Buyers using a JIT system should track unsatisfactory quality and ___________ equally A) innovation B) contract negotiations C) nonperformance on delivery D) pricing

C

Key supply management decisions that affect strategic goals center on (multiple answers) A) where the supplier is located B) which supplier is the cheapest C) which supplier to use D) what relationships to maintain with suppliers

C, D

True or false: Buyers and suppliers will have the same views on their performance on the buyer-supplier satisfaction matrix.

False

Decide if the technique used is a negative, crunch tool, or positive, stroking tool: Threat of legal action

Purchaser crunch tool

Decide if the technique used is a negative, crunch tool, or positive, stroking tool: sharing of information and seeking mutual resolutions

Purchaser stroking tool

True or false: Evaluation of service for supplier evaluations requires more objective judgments than an assessment of quality or price.

True

True or false: Single source suppliers may become overly dependent on buyers.

True

Superior suppliers are an ________________ to any organization

asset

Many organizations have a formal system for supplier evaluation and only use suppliers who are ________________

certified

Effective relationships between suppliers and buyers requires extensive __________________

communication

Performance evaluations can spur _______________ improvement efforts for both the purchaser and supplier.

continuous

The challenge with improved supplier communication and relationship building to improve performance is ________________

implementation

Lean supply networks make relationship managements easier, but can _______________ the risk of supply disruptions.

increase

Thinking from a long-term perspective during the ______________ stages of partnerships can prevent dissatisfaction in the long run.

initial

Establishing metrics for _____________ can prove challenging, one key measure could be percentage of sales for new products

innovation

Suppliers are typically divided into categories of _____________ and _______________ when establishing supplier scorecards.

new, current

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: end customer-drive

partnership

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: shared risk and opportunity

partnership

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: total cost of ownership

partnership

_______________ development can be a time-consuming process.

partnership

Decide if the technique used is a negative, crunch tool, or positive, stroking tool: refusal to pay bills

purchaser crunch tool

Decide if the technique used is a negative, crunch tool, or positive, stroking tool: long-term contracts and commitments

purchaser stroking tool

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: limited sharing of information

traditional

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: lowest price

traditional

For each element, decide if it's part of the traditional supplier relationship or part of a partnership: specification driven

traditional

How can understanding in a buyer-supplier relationship be improved? (multiple answers) A) continuous in-depth discussions B) exposure C) limited in-depth discussions D) mutual problem solving

A, B, D

Partners in multi-tier supplier relationships work together to achieve (multiple answers) A) higher quality B) lower costs C) higher costs D) sustainability

A, B, D

To create and effective partnership, both sides must (multiple answers) A) commit to making the relationship work B) develop solutions that benefit both sides C) be intolerant of mistakes D) tolerate mistakes

A, B, D

Relationship perception involves (multiple answers) A) means in which the results are obtained B) hard-nose negotiation techniques C) results obtained D) supplier pricing

A, C

What variables will determine the ability of a relationship to last long-term? (multiple answers) A) original goals B) pricing negotiation C) level of commitment from both sides D) industry

A, C

When an organization decided to bring on new suppliers, this can often (multiple answers) A) be expensive B) be inexpensive C) take time for implementation D) be a time of frustration

A, C, D

Organizations seeking potential supply partners can use (multiple answers) A) hard factors B) supplier location C) internal preferences D) soft factors

A, D

ABC manufacturing hosts an annual top executive meeting, this is a form of A) formal supplier evaluation B) semiformal supplier evaluation C) informal supplier evaluation D) ceremonial supplier evaluation

B

If the buyer perceives a buyer-supplier relationship to be in the marginal region on the purchaser-supplier satisfaction matrix, but there are problems, the buyer can A) withhold information and drop the supplier. B) share information to find a mutual solution. C) ignore the concerns and continue with purchases. D) allow the supplier to make all changes on their own.

B

Informal supplier evaluations are best suited for A) organizations with global supply networks. B) small organizations with strong communication between supply managers and suppliers. C) large complex organizations. D) organizations where supply is handled at various locations.

B

To monitor real-time supplier performance in areas of quality, continuous improvement, and price a _______ system is necessary. A) semiformal B) formal C) informal D) unofficial

B

When a supplier is kept informed of their performance compare to competitors or set goals, their performance will A) slowly decline over time B) typically improve C) usually remain the same

B

One way buyers now evaluate supplier goodwill is by using A) third-party research firms. B) formal logistic tracking software. C) internal employee surveys. D) informal customer questionnaires.

A

Operational partnerships are normally used for the procurement of A) leverage items B) capital goods C) strategic goods D) high value purchases

A

Organizations can use _______________ to help reduce time-consuming data collection efforts A) automation B) fewer KPIs C) consultants D) contract workers

A

The supply manager for ABC manufacturing placed an order that was due to be delivered over three weeks ago with no resolution in sight, this has caused a major operational delay. This supplier should be ranked as A) acceptable B) exceptional C) preferred D) unacceptable

D