Chapter 9 – Supplier Management and Development

Supplier management and development includes all the activities that measure, and improve, supplier performance. Is this:
1. true?
2. partly true?
3. false?
Which, of the following, is not commonly measured to assess supplier performance?
1. quality
2. reliability
3. cost
4. turnover
5. lead time
Many aspects of performance cannot be directly measured, so they cannot be included in performance measures. Is this:
1. true?
2. partly true?
3. false?
Which of the following is not a common technique for evaluating supplier performance?
1. categorical techniques
2. ordinal techniques
3. scoring models
4. cost-based techniques
Which, of the following, is not a step in building a scoring mode for supplier performance?
1. decide the most important performance factors
2. give each factor a weight to show its importance
3. give each factor a score to show actual performance
4. calculate an overall weighted score for each supplier
5. normalise these scores to allow comparisons
A supplier performance index is the ratio of non-performance costs, over total purchase costs. Is this:
1. true?
2. partly true?
3. false?
SPI is useful, as it is both reliable and easy to calculate. Is this:
1. true?
2. partly true?
3. false?
What is the essential purpose of supply base optimisation?
1. to identify the best supplier for an item
2. to use only a specified number of the best, available suppliers
3. to reduce the number of suppliers to a minimum
4. to remove suppliers that are unable to meet performance targets
5. to minimise the time needed to place an order
Which of the following is not a common advantage of an optimised supply base?
1. lower total cost
2. reduction of risk
3. easier administration
4. use of full-service suppliers
5. absence of competition
Which of the following is not a risk associated with a smaller supply base?
1. supply disruption
2. supplier dependency
3. overaggressive supply base reduction
4. extended supply chains
5. none of the above
Which of the following is not a common approach to rationalising a supply base?
1. SPL analysis
2. competency staircase
3. ‘improve or else’
4. triage
5. 80-20 rule
Supplier development includes any activity, by a buyer, to improve a supplier’s performance and capabilities. Is this:
1. true?
2. partly true?
3. false?
Which, of the following, is not a step in the process of supplier development?
1. identify critical commodities
2. identify critical suppliers for these commodities
3. analyse supply chain risk factors
4. identify opportunities for improvement
5. define key metrics and mechanisms for sharing benefits
6. agree key projects and joint resources
Which of the following can help supplier development?
1. warnings and penalties
2. incentives and rewards
3. direct involvement in activities
4. all of the above
5. none of the above
What are the types of barrier to supplier development?
1. buyer-specific and supplier specific
2. avoidance and reluctance to change
3. operational, financial and marketing
4. buyer-specific, buyer-supplier interface and supplier-specific
5. operational, tactical and strategic
Which of the following is not a common buyer-specific barrier?
1. there are no immediate benefits to the buyer
2. supplier lacks resources to implement solutions
3. purchase volumes do not justify the necessary investment
4. lack of executive support in the buying organisation
5. an item is not important enough to justify the development effort
Which of the following is not a common buyer-supplier interface barrier?
1. supplier’s management agrees to improvements but fails to implement the proposals
2. organisational cultures are poorly aligned
3. suppliers do not give enough inducements to participate
4. confidentiality inhibits information sharing
5. suppliers do not trust the buying organisation
Which of the following is not a common supplier-specific barrier?
1. lack of commitment from the supplier’s management
2. supplier lacks employee skills to implement solutions
3. there are problems with buyer-supplier relations
4. supplier lacks resource to implement solutions
5. suppliers are not convinced that they will benefit from developments