Rebates are considered part of which of the following types of cost management?
During negotiations, each side adopts a point of view, and then both parties work to close the gap by exchanging concessions. Which of the following tactics is being used?
A company has a large upcoming project. While the company has a current list of qualified suppliers capable of participating in this project, the chief procurement officer (CPO) wants supply management to conduct site visits with the suppliers under consideration. A senior supply manager is given the assignment of planning and scheduling the visits. Which of the following is the BEST way to begin this project?
The supply manager for a community college is contacted by the college's chief financial officer (CFO), who describes a meeting with Supplier X, a food service contractor interested in providing cafeteria services. The supply manager reminds the CFO that services must be procured via a competitive request for proposal (RFP), with solicitations issued only to suppliers who have completed a pre-qualification review.
The procurement process goes forward, and a contract is awarded to another bidder. Supplier X then sues the college. It claims that it never received an RFP, even though the CFO promised it an opportunity to submit a proposal. Which of the following aspects of the CFO's conversation with Supplier X is MOST likely to be an issue?
Which of the following refers to the process of generating information about the types of items sourced and their cumulative dollar value, to use for strategic and operational purchase planning?
A supply manager solicits bids for janitorial services. The incumbent cost is $20,000 per month to perform Scope A. After working with internal stakeholders, obtaining bids, and performing negotiations, a new supplier is awarded the agreement. The new supplier's cost is $19,000 per month to perform Scope A as well as Scope B, which was previously performed by another supplier at a cost of $2,000 per month.
What is the annual cost reduction?
XYZ Inc. is a chemical manufacturing company. XYZ requires high levels of consistency and precision from certain suppliers in their machining work. In order to drive continuous improvement with these suppliers, XYZ should develop KPIs to track performance in which of the following areas?
A commodity manager at company headquarters is given responsibility for consolidating spend among all the company's locations, with the goal of leveraging larger volumes. The manager collects data on spend categories, analyzes the information by supplier and type of material, and sends out goals for combining spend and reducing the number of suppliers. Several locations express reluctance to participate, saying that their needs for quality and delivery of critical parts have not been taken into consideration. Based on this situation, which of the following errors was MOST likely made by the commodity manager?
An exploration firm's supply manager meets with the fleet operations team to plan for the acquisition of vehicles to be used in company operations on a remote Pacific island. As removing the old vehicles from the island has proven to be a significant problem, the team requests the inclusion of a "take-back" requirement in the contract. Which of the following is the BEST way for the supply manager to respond to this request?
A company has recently moved to outsourcing and low-cost country sourcing for two key product lines, and the supply manager has seen some of the cost savings erode as the supply chain and related distances increase. However, the supply manager is certain that by working with the new supply base, many of the savings previously earned could be regained, especially since raw material lead times have actually decreased in the marketplace, and cycle time in most offshore assembly plants has been reduced by 35%. Which of the following should be employed?
