Chapter 5 – Purchasing Integration

What is purchasing integration?
1. consolidation of several small orders into a single larger one
2. merging different purchasing specialisations into combined units
3. bringing together different groups to work on common problems
4. aligning strategies to give common aims
5. having one manager in charge of several departments
What is relationship management?
1. all the activities that enhance relations between parties
2. the control of strategic alliances with suppliers
3. HRM
4. work done by leaders of negotiation teams
5. protocols for e-purchasing
Which of the following is not a common way for purchasing to increase integration?
1. information sharing
2. cross-functional teams
3. co-location of staff
4. reduction of the supply base
5. agreed performance measures and targets
For internal integration, purchasing should work closely with which of the following?
1. quality management
2. product design
3. legal department
4. accounting and finance
5. all of the above
Which of the following is purchasing least likely to form close links with, for external integration?
1. local communities
2. competitors
3. suppliers
4. government
Which of the following is not a common feature of a collaborative buyer-seller relationship?
1. mutual benefits and shared rewards
2. a limited number of suppliers
3. long-term contracts
4. rigorous expediting procedures
5. open exchange of information
Which of the following is not an advantage of buyer-seller collaboration?
1. easier selection of new suppliers
2. shared information
3. more efficient operations
4. higher customer satisfaction
5. faster response
It is easy to increase collaboration, moving though phases of distrust, suspicion, co-operation and trust. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not a common barrier to buyer-seller collaboration?
1. legal barriers
2. limited interest of suppliers
3. confidentiality concerns
4. physical separation
5. resistance to change
Who might be a member of a cross-functional sourcing team?
1. only members of a purchasing department
2. only members of purchasing and specific other departments
3. any internal employee
4. only suppliers’ employees
5. anyone who can help achieve a specified task
Which of the following is not a typical benefit from a cross-functional sourcing team?
1. joint ownership of decisions
2. greater volume of purchases
3. more innovation
4. shorter time to complete a task
5. enhanced communications
Cross-functional sourcing teams are most useful for tackling tasks that are complex and large scale. Is this:
1. true?
2. neither true nor false?
3. false?
Which of the following is not normally included in cross-functional team planning?
1. selecting team members and leaders
2. selecting a task
3. designing an appropriate strategy
4. training
5. allocating resources
How can a senior manager exert subtle control over cross-functional teams?
1. conducting performance reviews
2. selecting the team’s tasks and permitted activities
3. selecting the team members and leaders
4. prohibiting certain activities
5. all of the above
It is easy to be the leader of a cross-functional team, as it requires the normal skills of management. Is this:
1. true?
2. partly true?
3. false?
Suppliers should always be involved early in product design decisions, as they eventually have to provide all the materials needed. Is this:
1. true?
2. neither true nor false?
3. false?
Which of the following is not, generally, a factor that leads to successful involvement of suppliers in new product development?
1. sharing of technology
2. co-location of buyer and supplier staff
3. supplier participation in new product development teams
4. early supplier selection
5. superior levels of profitability and financial performance
6. direct cross-functional and inter-company communications
Order fulfilment includes all the activities, from taking a customer’s order through to delivering the finished products. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not a common way for suppliers to improve customer order fulfilment?
1. on-site supplier representatives
2. buyer-seller improvement teams
3. supplier suggestion programmes
4. supplier relationship management