Vce CORE Questions Latest

When a supplier states that a product is covered by a government contract, implying that they cannot offer a lower price, it is essential for the supply manager to verify this claim. The supply manager should require the supplier to provide specifics on the government contract restrictions. This will help determine if the price is indeed fixed by the government or if there are other negotiable aspects. By understanding the exact restrictions, the supply manager can better navigate the negotiation process, ensuring compliance while potentially identifying areas for negotiation that are not restricted.

References:

Federal Acquisition Regulation (FAR) guidelines on government contracts.

"The Art of Negotiation" by Michael Wheeler.

Institute for Supply Management (ISM) guidelines on government contract negotiations.

In the Kraljic matrix, a product with high business impact and low supply market complexity is categorized as a leverage item. Leverage items have a significant impact on the business and are typically sourced from multiple suppliers, allowing the buyer to leverage their purchasing power to obtain favorable terms and conditions.

References

Purchasing Must Become Supply Management by Peter Kraljic, Harvard Business Review

Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra and Peter Meindl

The greatest benefit of a supplier day/forum is providing attendees with insight into the buying company's new initiatives and strategic imperatives. This transparency helps align the supplier's efforts with the company's goals, fostering better collaboration and innovation. While other benefits such as seeing product usage (A), benchmarking against competition (C), and meeting the supply management team (D) are valuable, understanding the strategic direction is paramount for long-term partnership and success. References: Supply chain collaboration and communication strategies, supplier relationship management best practices.

Developing a category management plan involves a thorough understanding of both the internal needs and external market conditions. Collecting spend data provides insight into purchasing patterns, volumes, and costs, which is crucial for effective category planning. Additionally, aligning with the business strategy from stakeholders ensures that the category plan supports the overall objectives and priorities of the organization. This comprehensive approach allows for more strategic sourcing and management of the category.References:

Category Management in Purchasing: A Strategic Approach to Maximize Business Profitability by Jonathan O'Brien.

CIPS Category Management guidelines.