Exam 2: The Purchasing Process

Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may try to negotiate contracts themselves (a practice known as _____).

_____ include(s) the materials required to pack and ship final products, such as pallets, boxes, master shipping containers, tape, bags, wrapping, inserts, and other packaging material.

_____ is a process associated with defining the contract, defining roles and responsibilities of both parties, and advising when to modify and ensure appropriate escalation.

The _____, which the supplier provides, details the contents of a shipment and contains the description and quantity of the items in a shipment.

Buyers use competitive bidding when price is a minor criteria and the required item (or service) has complex material specifications.

One of the most important objectives of the purchasing function is the selection, development, and maintenance of suppliers, a process that is sometimes described as _____.

When marketing wants to purchase an advertising media campaign, the _____ should specify the work that is to be completed, when it is needed, and what type of service provider is required.

Contract management should be used to trigger proactive sourcing events only after a contract expires.

Once a purchaser and a supplier reach agreement on a longer-term purchase contract, material releasing responsibility should shift to _____.

_____ is might be the best choice for standard items, where the requirements are well understood and there is common agreement between supply chain partners about what certain terms mean.

_____ can cover such characteristics as the materials used, the manufacturing or service steps required, and even the physical dimensions of the product.

Purchasing can directly affect (positively or negatively) the long-term growth, revenue, and operating outcomes and plans of stakeholders and business units.

When using negotiating a/an _____, it is necessary to include a/an _____ that allows a buyer to terminate the contract in the event of persistently poor quality, delivery problems, and so on.

When a situation arises when an internal customer has a need that comes up suddenly, which is not planned for and for which there is no preexisting supplier identified to provide the product or service required, purchasing should use a/an _____ approach.

A/An _____ has demonstrated its performance capabilities through previous purchase contracts and therefore receives preference during the supplier selection process.

The process that buyers use to select suppliers does not vary widely depending on the required item and the relationship that a buyer has with its suppliers.

_____ is the end-to-end process of managing a supplier through the entire sourcing life cycle, which includes first identifying the abilities of a particular company with regard to performing a service for the internal customer, completing a sourcing event, negotiating a contract, executing an order, and determining payment.

Almost all firms establish blanket purchase orders with their suppliers.

Which of the following is not an advantage of online ordering systems?

_____ is used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's products or services.