Strategic Sourcing Quiz

What is the main goal of strategic sourcing?

• To reduce operational costs in the short term

• To maximize long-term value through supplier relationships

• To focus only on product quality

• To eliminate competition in the supply chain

Which of the following is NOT a typical benefit of strategic sourcing?

• Increased supplier competition

• Improved supplier collaboration

• Increased procurement costs

• Streamlined procurement processes

Which of the following steps is the first in the strategic sourcing process?

• Supplier evaluation

• Market analysis

• Defining requirements

• Contract negotiation

Which sourcing strategy involves purchasing items based on their criticality to the business and the supply market's characteristics?

• Global sourcing

• Leverage sourcing

• Single-supplier sourcing

• Strategic sourcing

In strategic sourcing, what is typically the most important factor to consider when selecting a supplier?

• Price alone

• Geographic location

• Supplier's ability to innovate and meet future needs

• Supplier's marketing and advertising strategies

What does a 'Total Cost of Ownership' (TCO) analysis include in the context of strategic sourcing?

• Only the purchase price of the product

• Costs incurred during the product lifecycle, including acquisition, maintenance, and disposal costs

• Costs of employee training

• Only transportation and shipping costs

Which of the following is a key feature of global sourcing in strategic sourcing?

• Sourcing products from a single local supplier

• Sourcing from multiple countries to leverage cost advantages and specialized expertise

• Focusing on environmental sustainability

• Prioritizing suppliers based solely on proximity to the production plant

The practice of evaluating and selecting suppliers based on their sustainability practices is known as:

• Green sourcing

• Ethical sourcing

• Lean sourcing

• Risk-based sourcing

Which of the following is a risk typically associated with strategic sourcing?

• Loss of control over product quality

• Increased supply chain flexibility

• Reduced lead times

• Stronger supplier relationships

What does a supplier performance scorecard measure in strategic sourcing?

• The financial stability of the supplier

• The supplier's operational efficiency, delivery times, and quality

• The supplier's number of employees

• The supplier's brand image