Chapter 12 reading

Private organizations have custom requirements as a form of

competitive advantage.

A primary way an organization can achieve reduced costs, improved quality, and faster speed to market is with the use of ___ -functional teams.

cross

To be competitive an organization must

deliver goods that have a fair price to consumers. deliver goods to consumers on time. deliver goods that meet quality expectations.

The most critical issues supply chain managers face, are supply chain ___ and supply chain ___

disruptions and risk

Indirect supply contributions are often considered "soft" or ___ contributions making them challenging to measure.

intangible

Key drivers for an organizations supply decisions are the ___, ___, and ___

mission, vision, and strategy

Information that is often provided by the supply function includes

new products. new technology. new sources of supply.

To be an effective member of the organization, supply must contribute

operationally and strategically. directly and indirectly.

Organizations must meet strategic goals by placing importance on ___ and knowledge management.

process

Providing training to new managers in supply functions can help them

quickly grasp organizational goals and needs.

Supply's measure of its contribution needs to be seen in the success of an organization as a whole. Meaningful involvement of supply can be demonstrated by the ___ accorded supply by all members of the organization.

recognition

Supply chain technology has allowed organizations to

reduce inventory costs. improve customer service. reduce transaction costs.

Organizations who turn over inventory control over to the suppliers benefit from which of the following?

removes asset dollars from the ROA calculations. The supplier takes on inventory carrying risk. The supplier is responsible for all disposal costs.

Many organizations allocate the number of ___ for the supply department based on the amount of dollars spent on supplies.

resources

Organizations where unethical supply decisions are made can have an increase in reputation

risk

When making decisions supply managers must balance

risk and reward

Supply functions can increase customer satisfaction by

securing suppliers who deliver better quality, faster, and with a better price.

There are at least ___ major challenges that the supply industry is facing moving into the next decade.

seven

Supply chain management focuses on cost saving opportunities like

shorter lead times. reduction of inventories. removal of waste throughout the supply chain.

Multiple sourcing was once believed to increase supply security, the trend now focuses on

single sourcing.

Strategic ___ focuses on long-term supplier relationships.

sourcing

Supply is an organizational tool of management _______________ and social _____________.

strategy and policy

Organizational success relies considerably on effective purchasing and

supply management.

Public organizations have stricter policies than private to help

support disadvantaged groups. allow for multiple bidders during supply acquisition. allow transparency and fairness to suppliers.

SCM is a ___ approach to managing materials, services, and information.

systems

Strategic management decisions can have an impact on supply functions, gains can be made in

technology advancements.

Some of the challenges the supply industry is facing include

technology. sustainability. risk management.

When the supply function can provide information about new advertising techniques and distribution systems, this may be useful to

the marketing department.

A decrease in purchasing expenditures that directly increase profits before taxes (assuming no reduction in quality or buying total cost) is known as

the profit-leverage effect

Accurate supply measurements will give managers the ability

to compare results of various supply experiments. to see supply's contribution.

Supply sustainability efforts of the future will be

to identify solutions.

Negotiating with a supplier to create a product with higher quality is considered to be an operational perspective.

true

True or false: Dollars spent on supplier costs compared to total revenues is a good indicator of supply's performance for an organization.

true

True or false: Organizations of the future will focus on aggressive strategies to achieve organizational goals.

true

True or false: While objectives are great, reputation is fostered through action and results.

true

Purchasers who have the means and readiness to pay has

valuable bargaining strength.

What term is used to trace a product or service through each process until the delivery of the end result to the customer.

value chain

Although there have been many technological advances in supply chains, there are still many opportunities for new product development, better internal and external collaboration, and

waste elimination.

Match the standard steps of the procurement process.

1: Recognition of need. 2: Translation of need into commercially equivalent description. 3: Search for potential suppliers. 4: Selection of a suitable source. 5: Agreement on the contract details. 6: Delivery of the products or services 7: Payment of suppliers.

Service organizations spend between ___ % and ___ % on costs for outside suppliers.

25 to 35

Who defines logistics management as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements?

Council of Supply Chain Management Professionals (CSCMP)

Allowing managers to make decisions under pressure while training supply functions carries which benefits?

Evaluation of the individual's ability to make sound decisions. The individual's capacity to take responsibility for decisions that are made. Evaluation of the managers willingness to make sound decisions.

Logistics includes which types of movements of goods, services, and related information?

Inbound, outbound, internal, and external.

Which of the following is true of supply management?

It is challenging because the of the complexity and because the process is dynamic. It is both interesting and challenging.

Which supply management techniques have increased over the traditional ideals?

Long-term contracts opposed to short-term buying. Close supplier relationships in place of arm's-length dealings. Negotiation instead of competitive bidding.

Decide if an organization is a manufacture, service provider, or a combination:

Manufacturer: an organization that produces a cellphone and keeps it in stock, prior to the customer purchasing. Service provider: A facility that repairs television products at a consumers request Combination: An electronics producer who service their products after sales as required by customers.

ISM launched the Certified Professional in Supply Management (CPSM) program in

May 2008

Match the stages of supply chain involvement.

None: The lowest level of involvement. Documentary: Transactionary involvement only. Professional: Personnel use expertise to assess acquisition decisions. Meaningful: True team member status.

Contributions from supply can be viewed from which contexts?

Operational Strategic

__________ supply decisions are the day-to-day decisions that allow management to focus on their strategic contribution. _________ choices, however, focus on new and innovative solutions and supply challenges.

Operational; Strategic

Which of the following supply decisions can lead to poor operational efficiency.

Parts that arrive to the facility that do not meet quality standards. Raw materials that arrive late from the supplier.

Which term(s) are used to describe related functions within an organization that provides effective and efficient materials and services management?

Procurement Supply management Purchasing

Which of the following can affect how organizations apply the concepts of purchasing, procurement, supply, and supply chain management?

Product stage of development. The industry the organization operates in. The organizations competitive position.

___ is measured by the increase in profit obtained by a decrease in purchase spend.

Profit-leverage effect

______________ is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources.

ROA

What are some opportunities to explore when integrating supply management with business processes?

Reduce costs throughout business processes. Increase a products speed to market. Increase quality of products.

Supply functions that are mismanaged can lead to which types of organizational risks?

Reputation Financial

Valuable contributors that give supply managers leverage when selecting quality suppliers are

a strong corporate image. reputation.

Strict regulatory requirements regarding _______ processes and policies are one way public organizations differ from private organizations.

acquisition

Sustainability efforts of supply managers involve effective capture and disposition of products ___ customers have used them

after

Suppliers and supply function are vital to

an organization's success. customer satisfaction. competitive advantage.

Confidence in an organization's ability can be improved by

applying sound and ethical policies.

Supply managers have room for growth and influence by being more involved in areas they have not traditionally been such as

benefit programs. consulting. real estate purchases.

Supply function growth and influence is represented in four areas including total spend of the organization, the span of supply chain activities, supply chain responsibilities including acquisitions, and

corporate activity involvement.

A manufacturers largest expenditure is ___ requirements while a service provider spends more on ___ requirements

direct and resale

Lean supply management refers to using techniques of just-in-time to

ensuring every step in a process adds value. remove delays between process as much as possible. keep inventories at a minimum.

Corporate image is the responsibility of ___ employee

every

True or false: The supply function often contributes directly to the organization through information exchanges with suppliers and consumers.

false

True or false: The supply industry uses the same types of measurements throughout every industry to measure supply contribution.

false

An organization with strong financial strength has ___ buying power

higher

Return on assets (ROA) is an indicator of

how profitable a company is relative to its total assets.

In order to be effective supply management includes the acquisition of materials, services, and equipment:

in the right quantities. at the right prices. at the right time.

Supply managers have to focus on strategies when making supply decisions, these include

innovation. transparency. social responsibility. the environment.

f supplier fails to deliver parts that are of poor quality, it can negatively impact production by

leading to issues that necessitate higher direct labor costs.

Private organizations have___ restrictions with supplier selection compared to public organizations

less

Two major supply chain performance measures are inventory turnover and ___

level

Small organization supply chains do not have the same ___ as larger organizations.

luxury or opportunity

The Institute for Supply Management releases the monthly "ISM Report on Business" for the ___ sector

manufacturing

Inventory reduction and purchasing savings are direct contributions that are ___ and tangible

measurable

Organizations with multiple sites face additional concerns with regards to

transportation and storage issues.