Quiz Chapter 3

"Refer to buying materials or components from suppliers instead of making them in-house. Raw material
that supplier or vendor are to supply to the firms and have closer relationship between suppliers/vendors
and buying organizations towards JIT buying."

The statements above is refers to definition of what ?

• Sourcing

• Procurement

• Purchasing

The following are the characteristics of a good supplier except :

• Just in time delivery

• Sharing information

• Good in communication

• Total cost increase

Single sourcing in procurement logistics involves relying on a single supplier for a particular product or service.

• True

• False

List out the pros and cons of the sourcing agent .

Rearrange the sourcing process

• Contract discussion

• Market Assessment

• Specification development

• Negotiation

What does vertical integration in procurement logistics involve?

• Outsourcing all procurement activities

• Bringing all procurement activities in-house

• Expanding the product range

• Reducing inventory levels

What strategies or improvements do you think could enhance the efficiency of our distribution processes and help us better meet our procurement goals?

A ​ (a)   is a person or a registered company which finished products form raw materials to

make a profits.

• manufacturer
• distirbutor
• broker
• local sourcing

What are the advantages of single sourcing in procurement logistics?

• Cost savings, improved supplier relationships, reduced complexity, increased leverage

• Decreased leverage, strained supplier relationships, higher costs

• Higher prices, limited supplier options, increased complexity

• Faster delivery times, increased product quality, reduced risk

What is the role of vertical integration in procurement logistics?

• Vertical integration in procurement logistics allows companies to have greater control over their supply chain, reduce costs, improve efficiency, and ensure quality.

• Vertical integration in procurement logistics is only beneficial for small companies, not large corporations.

• Vertical integration in procurement logistics only increases costs and decreases efficiency.

• Vertical integration in procurement logistics has no impact on supply chain control, cost reduction, efficiency improvement, or quality assurance.