421 exam

the practice of using an organization's own personnel or other resources to accomplish a task that was previously outsourced.

insourcing

Where to do the job the best, If the best supplier is located outside your home country, the decision to buy overseas is known as

offshoring

New technologies emerge, new suppliers come to the market, costs change, politics shift

reason firms use insourcing

RFI

request for information

is the act of reintroducing domestic manufacturing to a country. It is the reverse process of offshoring, where manufacturing is moved to another country where labor is cheaper.

reshoring

Which of the seven "rights" of purchasing is the most important?

the right supplier

What is the total cost of buying, using, and disposing of an item called?

total cost of ownership

What is your biggest fear with a bottleneck item?

A supply disruption

An item that is purchased that has many suppliers available and is of low importance to your organization should have the following selection process characteristics . . .?

Efficient

based on how much is spent on an item. The more a purchaser spends, the more important the item is to their company's bottom line.

Importance of category

is the key in managing outsourcing projects

Incentive alignment

Materials that do not go directly into the product, but facilitate it's creation.

Indirect Materials

What's a possible disadvantage of forward-buying inventory in bulk?

Inventory costs will rise

You are responsible for buying an item that has many capable and competent suppliers available and your spend is quite large for your company. How would this item be classified on the strategic sourcing matrix?

Leverage

Which of the following is an MRO purchase?

Lubricating oil for a machine on the assembly line

What is the "who should do it" question also called?

Make versus buy

measures how difficult it is for the purchaser to guarantee a reliable and uninterrupted supply at an affordable price.

Market complexity

7 rights of purchasing

Obtain the right material in the right quantity at the right time for delivery to the right place from the right supplier with the right service at the right price

You work for a company located in the United States and have decided to buy customer contact center services from a company located in India. What is this is called?

Offshore outsourcing

Which of the following are two types of offshoring?

Offshore production, Global sourcing

really about who can do the job the best

Outsourcing

As a category specialist, you need to develop expertise on which of the following?

Price and availability

Put simply, it is the amount of extra sales dollars needed to have the same impact of $1 saved by Purchasing's efforts

Profit leverage effect

communication of a purchasing need from internal customers to purchasing personal

Purchase requisition

is the process of obtaining materials, products, and services for the firm.

Purchasing

Cost savings

Reason firm use outsourcing

What does hollowing out of corporations mean?

Relinquished too much of your core capability

RFB

Request for Bid

RFP

Request for Proposal

RFQ

Request for Quotation

Porter's 5 Forces

Rivalry among competencies, threat of entrants, bargaining power, threat of substitutes, bargaining power of suppliers

an option when there is no supplier meeting the requirement - depending on how critical is the purchase

Supplier development

"the identification, acquisition, access, positioning, management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives."

Supply Chain Management

Which of the following would suggest a highly complex buying market?

The technology of the purchased input is constantly changing

is to get the best price possible while ensuring supply in the future.

The ultimate goal of doing category analysis/planning

Which of the following characterizes how you should manage routine buys?

Use P-cards and catalogs to outsource to the end user

Which of the following is characteristic of a high importance buying category?

You spend a lot of money on this purchased input and The input has a large impact on the customer experience

certified supplier. arrival without inspection and straight to inventory/production

dock-to-stock

need to be an expert on the category you are buying - knowing inside and out using the checklists we just talked about.

Category Managers

Which of the following is a good match between buyer and supplier for all types of buys?

Core

Direct inputs to your firm's final product or service. often largest spend category

Direct Materials