Topic 11: Electronic Sourcing
Rules to cultivate change
1. top management commitment 2. leverage change events 3. sell new capabilities to team 4. involve relevant decision makers 5. document results and share success stories
Steps to running a successful reverse auction
1. use online bidding events for the right products 2. include and communicate the right criteria 3. provide supplier education 4. set clear expectations
Electronic sourcing suites can do all of the following, EXCEPT . . .? A. Automate the sales process B. See an up-to-the minute snapshot of your spend C. Select suppliers D. Monitor suppliers E. Manage costs strategically
A
The competitiveness in reverse auctions is enabled by . . .? A. Suppliers ability to see in real-time how their bids compare to those of rivals B. Suppliers not being able to communicate with the buyer other than through the auction site C. Suppliers knowing who the competing bidders are D. Suppliers colluding E. Suppliers being rewarded for superior quality
A
When did Material Requirements Planning start to gain traction (i.e., widespread adoption)? A. 1970s B. 1980s C. 1990s D. 2000s E. It never really gained traction
A
When setting up and using a web catalogue, which of the following is not one of your primary responsibilities (i.e., as a purchasing professional)? A. Placing purchase orders B. Identifying the right suppliers C. Negotiating the supply contracts D. Training end users E. Working with iT to set up the catalogue
A
Which is commonly not part of an electronic sourcing application suite? A. Demand forecasting B. Spend analysis C. E-sourcing D. Contract management E. Supply base management
A
Which module of a sourcing application suite would you use to decide whether suppliers and/or products should be consolidated? A. Spend analysis B. Supplier performance measurement and management C. Requisition management D. Contract management and compliance E. Catalog management
A
Which of the following is usually NOT considered a strategic module in a sourcing application suite? A. Requisition management B. E-sourcing and reverse auctions C. Supplier performance measurement and management D. Spend analysis E. Contract management and compliance
A
Which of the following is usually NOT considered an operational module in a sourcing application suite A. Spend analysis B. Contract management C. Web catalogues D. Purchase order management E. Both A and B F. Both C and D
E
steps in evolution of electronic sourcing
1. MRP 2. MRP II 3. EDI 4. ERP 5. Supplier portal 6. Sourcing Suites
outcomes of an e-sourcing capability:
1. better sourcing decisions 2. lower transaction costs 3. better leverage 4. stronger supplier relationships
what are the operational modules
1. catalogs 2. requisition management 3. purchase order management 4. invoice management
e-sourcing suite benefits
1. dashboards 2. the cloud 3. mobility 4. collaboration
Strategic Modules in an e-sourcing suite
1. e-sourcing and reverse auctions 2. spend analysis 3. performance management 4. contract management
What are the steps to developing and executing a successful e-sourcing strategy
1. focus on process 2. adapt the app 3. cultivate to change
Select all that apply: Which of the following are critical steps to running a successful reverse auction that builds productive buyer/supplier relationships? A. Use online bidding events for the right product categories B. Include the right criteria to select the supplier C. Provide supplier education D. Set clear expectations E. Always award the lowest price bidder to build trust
A,B,C,D
Select all that apply: Which of the following can serve as conditions for success of an electronic sourcing strategy? A. Listening to critiques by affected users B. Open communication C. Change management D. Sound process infrastructure E. Treating electronic sourcing applications as a one-size-fits-all approach
A,B,C,D
Select all that apply: Which are commonly part of an electronic sourcing application suite? A. Spend analysis B. Contract management C. E-sourcing D. Sales leads follow-up E. Supply base management
A,B,C,D,E
Select all that apply: Which are characteristics of successful supplier portal? A. Enables better integration between buyer and supplier B. Serves as a central repository of important information C. Makes communication between buyer and suppliers easier D. Information can be accessed by everyone E. Materials and order management are significantly enhanced
A,B,C,E
Select all that apply: Which are benefits of an electronic sourcing application suite? A. Information is stored in the cloud B. Only select information is stored in one system C. Customizable dashboards allow continuous performance monitoring D. Purchasing tasks can be conducted more efficiently and effectively E. Applications are generally accessible from anywhere via an internet connect
A,C,D,E
All of the following are important lessons to consider when conducting reverse auctions, EXCEPT . . .? A. Identify suitable commodities B. Avoid items that can be bundled C. Communicate clear specifications D. Emphasize integrity E. Educate buyers
B
Select all that apply: Which of the following statements on electronic sourcing is false? A. Electronic sourcing is not a means to an end B. Electronic sourcing replaces all human interaction C. Electronic sourcing needs to be carefully implements D. Electronic sourcing can streamline sourcing processes E. Electronic sourcing enables you to focus on important tasks
B
What does MRP enable you to do better? A. Sales forecasting and implementation B. Production planning and scheduling C. Consolidating accounts payable D. Marketing planning and execution E. Engineering design and blueprint
B
Which module in a sourcing application suite helps you keep up-to-date with supplier information? A. Spend analysis B. Supplier performance measurement and management C. Requisition manangement D. Contract management and compliance E. Catalog management
B
Select all that apply: Change management entails which of the following activities? A. The need for change should be kept quiet as much as possible to avoid resistance B. Involving affected individuals as early in the process as possible C. Addressing fears and concerns of affected individuals D. Obtaining the input from affected individuals E. Soliciting feedback from affected individuals
B,C,D,E
External catalogues from suppliers can be integrated into sourcing applications suites via . . .? A. Takeouts B. Punchin C. Punchouts D. Take ins E. Punch takes
C
Operational e-sourcing modules can do a lot of things. What don't they do well? A. Automate transactional steps in the purchasing process B. Bring spend under control C. Strategically manage supplier relationships D. Facilitate requisito management E. Drive compliance
C
What does EDI stand for? A. evaluate, develop, implement B. Economic development intuitive C. Electronic data interchange D. Extreme deep invader E. Extended destination index
C
When planning for a reverse auction, which of the following should you keep in mind? A. Suppliers that participate in reverse auctions are generally poor in terms of quality B. Reverse auctions are never able to create a long-term relationship with the supplier C. Trusted suppliers may refuse participating in the auction D. Internal adoption of reverse auctions is generally pretty easy, requiring few changes in behavior E. The number of bidders in an auctions doesn't matter
C
Which is NOT one of the benefits of an ERP system? A. Automation and efficiency B. Increased data accuracy C. Cumbersome processes D. Enhanced data analytics E. Improved visibility
C
Which is not a characteristic of a successful supplier portal? A. Enables better integration between buyer and supplier B. Serves as central repository of important information C. Makes communication between buyer and supplier more challenging D. Can be easily accessed by authorized users from anywhere E. Materials and order management are significantly enhanced
C
Which of the following is usually NOT considered an operational module in a sourcing application suite? A. Invoice management B. Catalog management C. Supplier performance measurement and management D. Purchase order management E. Requisition management
C
All of the following are characteristics of effective electronic sourcing, EXCEPT . . . A. Online catalogs can be conveniently searched B. The three-way match can be conducted automatically C. The analysis can be easily linked to other data D. Requisition approval relies on paper documents circulated between parties E. Data analysis can be automated with alerts generated based on pre-set conditions
D
Companies have learned a great deal regarding how to successfully conduct reverse auctions. Which of the following is NOT a best practice? A. Have at least three competitive suppliers that are willing to participate B. Try to specify the items in the RFQ as precisely as possible C. Make sure your internal team is familiar with the reverse auction process D. Try to keep communication with suppliers at a minimum prior to the auction E. More qualitative factors can be factored in the auction by weighing quotes accordingly
D
ERP was an immediate outgrowth of which other technology? A. The internet B. MRP C. EDI D. MRP II E. Sourcing sites
D
In which part of the purchasing process are online catalogues especially helpful? A. Requisition approval B. Analysis C. Payment D. Product identification and selection E. PO transmission
D
What does ThomasNet help you to do? A. Help you in marketing efforts B. Share information with suppliers C. Negotiate with suppliers D. Discover suppliers E. Nothing
D
Which of the following is a benefit of a web catalogue? A. Better use of approved suppliers B. Improved buying efficiency C. Web catalogues free up time for purchasing professionals to spend on strategic projects D. All of the above E. B and C only
D
Panjiva is a service that allows buyers to identify...? A. Price competitive suppliers in their region B. The sustainability performance of their suppliers C. How well they have been performing D. Risks in the supply chain E. Legitimate supplier that match their needs
E
The choice of a sourcing application suite should be driven by...? A. Finance B. Strategic sourcing C. Tactical procurement D. Suppliers E. All users in the company
E
What is the central component of an ERP system? A. The purchasing module B. The finance module C. The interface between accounting and finance D. The interface between purchasing and sales E. The relational database
E
Which activities can be enabled by electronic sourcing? A. Identification of a suitable set of suppliers B. Qualification of suppliers C. Negotiations with suppliers D. Exchanging documents electronically E. All of the above
E
Which is a benefit of an electronic sourcing application suite? A.Information can be accessed through different modules B. All information is stored in one system C. Customizable dashboards allow continuous performance monitoring D. Purchasing tasks can be conducted more efficiently and effectively E. All of the above
E
Which of the following are critical steps to running a successful reverse auction that builds productive buyer/supplier relationships? A. Use online bidding events for the right product categories B. Include the right criteria to select the supplier C. Provide supplier education D. Set clear expectations E. All of the above F. A,B, and D
E
Which of the following are key benefits of P2P (i.e., operational) modules? A. Improved visibility of transactions B. Automated or streamlined purchasing C. Brings spend under control D. Enhances compliance E. All of the above
E
Which of the following is a benefit on an invoice-management module? A. Faster invoice processing B. Reduced invoice processing costs C. Fewer invoice processing errors D. You make friends E. All of the above F. A, B, and C
E