1. (TCO 1) In an integrated approach to sourcing, we now see procurement more widely accepted as a profession. How will this function evolve over the next decade? What approaches will we see and in which areas of business and interaction? What will the objectives be, other than reducing price of materials and services?(Points : 30)
2. (TCO 2) Procurement teams help organizations advance social issues and trends. Over time, procurement has required the supply base to conform and align initiatives. In the 1990’s recycling was new (now widely expected), and in the 2000’s going paperless was established. New technologies in computers and software allowed for email and PDF’s and electronic data interchange, including invoicing and payments. Now in the 20-teens, we have environmental issues and pressures being applied in the areas of energy and health. What are the two strategies and their tools that purchasing would apply to use or align the supply base to meet customer and social objectives? What is the impact now and over time? How can you be successful, even if there is resistance from your supply base? (Points : 30)
3. (TCO 3) A centralized structure faces different challenges than a decentralized structure. This is usually the difference between large and medium sized organizations. What are the nine objectives of supply management, and how can it be organized to achieve its desired objectives of effectiveness and efficiency? (Points : 35)
4. (TCO 4) Please describe in detail the considerations and benefits when switching from EDI to a web-based platform for electronic procurement. What is impacted? How is it impacted? Name some benefits, and to what and to whom? (Points : 35)
5. (TCO 5) Read the following scenario and then determine whether the firm should make-or-buy
in this situation. Use the lecture and the book to determine the answer.
Your organization plans to introduce a new product in the next 16-18 months. The product will rely on technology about which your organization already has some know-how and equipment for. Although this product could open up new markets for your firm, you suspect that competitors are also making plans to enter this market. In fact, they are likely to have competing products out in the marketplace around the same time you expect to. Rather than compete on price, you feel that your firm’s key to a strong market share will be how well you differentiate your new product from your competitor’s.
Why would you make the item? Explain and discuss the reasons.
Why would you buy the item? Explain and discuss the reasons.
Make a recommendation in favor of make-or-buy, and explain why your chosen alternative is superior to the other. (Points : 35)
6. (TCO 6) Procurement is responsible for sourcing goods and services for the organization. While doing so, their obligation to the company is to make the best decision. Quality becomes an order qualifier so pricing is only second to quality. So what is a buyer looking for in terms of “quality” when they are making a sourcing decision? (Points : 35)