Exam 17: Purchasing Services

Inland water carriers typically transport finished or semifinished products because of the lengthy in-transit time.

The greatest competition between domestic transportation modes involves rail and motor carriers.

Whenever a supplier ships FOB destination, the buyer often loses the ability to track or control its inbound transportation expenses which also artificially increases the value of the buyer's inventory.

A _____ is a key individual or unit that controls substantial indirect spending and typically has a position of great responsibility within the organization.

The parameters on which a professional services supplier is evaluated should include, but not be limited to, quality, cost management, delivery, technical support, and wavelength.

A/An _____ serves the transportation requirements of the party with which it has a legal agreement and provides only those services that have been negotiated with the shipper at a mutually agreed upon price.

Because of widespread industry differences, one company's indirect spend may be considered direct spend for another.

Virtually all of indirect spend is normally purchased throughthe organization's formal sourcing function or using well-established supply management processes.

Shipping a high-priced component via air is never a cost-effective option.

_____ can be defined as the sum of all purchased goods and services that are not a direct part of products or services delivered to the customer.

Which of the following is not an advantage of using a 3PL?​

A/An _____ system provides status alerts, via e-mail, fax, pager, and so on, to a buyer or salesperson that a particular shipment has been delayed and that this may affect other entities in the supply chain.

Suppliers of multiple indirect items can often have multiple ship-to and bill-to addresses, resulting in numerous codes being assigned to the same supplier for each item.

_____ can be defined as how easy the professional service provider is to do business with.

Which of the following is not one of the advantages of air carrier over other modes of transportation?

A major disadvantage of a rail carrier is its relatively higher cost.

A savvy buyer will want to control transportation costs internally instead of simply allowing the shipper to pass them along in the form of a delivered price.

Which of the following is not an advantage of centralizing professional service procurement?

_____ includes movement and handling of materials between production facilities within the same organization as well as movement into and out of intermediary storage facilities.

In general, supply management should provide and manage suppliers' e-catalogs.