Exam 5: Purchasing and Supply Management Organization

If purchases are very different across business units, an argument could be made for decentralization.

Purchasing personnel cannot become experts in all categories of spend, especially as the purchasing function becomes more complex and sophisticated.

Transportation is a highly specialized activity with its own set of requirements.

_____ involves a systematic monitoring of the supply environment to assure a continual economic supply of goods and services.

The actual expediting process frequently provides new value within the purchasing process.

Separation of supply management duties into strategic and tactical job assignments means that strategic responsibilities are more important.

Decentralized purchasing personnel should gain a greater understanding and appreciation of local operating requirements.

_____ refers to the assumption that local personnel understand and support the objectives of the business unit or division and feel a personal commitment to a particular operation.

Organizations that rely on part-time teams typically do not maintain their existing functional structure while adding additional team-related duties.

Regional buying groups are most advantageous where geographic concentration exists within a company.

Which of the following is an example of a strategic activity?​

The supply chain organization of the future will rely much more on hierarchical and functional boundaries.

Increasingly, purchasing is becoming more involved with expediting and inventory control.

[A] _____ is similar to [a] _____ except that they tend to be more advisory in nature.

Which of the following is not one of the broad features of the ideal future procurement organizational model?

Detailed short- and long-term purchasing plans are required for items subject to technological, economic, or political change.

A reason for decentralization is a reduction in duplication of effort.

A _____ is a voluntary group where buyers are in the same industry and conduct business with many of the same suppliers.

The _____ group is responsible for developing the policies and procedures that purchasing personnel follow, administering and maintaining the purchasing information system and database, determining required staffing levels, developing department plans, organizing training and seminars for buyers, and developing measurement systems to evaluate purchasing performance.

The preparation and transfer of material releases to suppliers is part of the operational support process.