3.2 The role of procurement

• What are the four key actions involved in the procurement process?

  Selecting suppliers, negotiating prices, placing orders, ensuring delivery
• What is the primary goal of sourcing and purchasing in procurement?

  Identifying and procuring goods
• Weak supplier relationships can lead to unreliable deliveries and supply disruptions.


  True
• Delivery assurance is a key aspect of procurement to ensure goods arrive on time and accurately.


  True
• Supplier relationships are crucial in procurement because they can significantly impact a business's operations and performance
• Procurement is the process of sourcing and purchasing goods and services
• Unreliable deliveries are a characteristic of weak supplier relationships.


  True
• What are the benefits of integrating technology in procurement?

  1️⃣ Increased Efficiency and Cost-Savings

  2️⃣ Improved Visibility and Control

  3️⃣ Enhanced Collaboration with Suppliers

  4️⃣ Ability to Optimize Procurement Strategies
• What is the first key function of procurement?

  Sourcing and Purchasing
• Price negotiation in procurement aims to ensure cost-effectiveness for the business.

  True
• Match the characteristic with its description:

  Reliability ↔️ Fulfilling orders on time

  Flexibility ↔️ Accommodating changes in orders

  Cost-Effectiveness ↔️ Better prices and payment terms

  Innovation ↔️ Sharing new ideas and technologies
• Price negotiation in procurement ensures businesses achieve favorable terms with suppliers.


  True
• What does the term "e-procurement" refer to?

  Using digital tools to streamline procurement
• How does technology improve visibility in the supply chain?

  By providing real-time data
• What ethical principle requires businesses to hold suppliers accountable for their actions?

  Transparency
• Procurement is the process of sourcing and purchasing goods and services needed by a business from external suppliers
• Supplier selection involves choosing suppliers based on factors like price, quality, reliability, and ethical considerations
• What are three benefits of strong supplier relationships in procurement?

  Reliability, flexibility, innovation
• What are three factors to consider when selecting a supplier in procurement?

  Price, quality, reliability
• Why is price negotiation important in procurement?

  Ensures cost-effectiveness
• What is crucial for a business's overall success in procurement?

  Reliable supply chain
• What are the key benefits of strong supplier relationships in procurement?

  1️⃣ Reliability

  2️⃣ Flexibility

  3️⃣ Cost-Effectiveness

  4️⃣ Innovation
• What can businesses leverage data analytics for in procurement?

  Cost-saving opportunities
• Procurement involves sourcing and purchasing goods and services
• Choosing suppliers based on price, quality, reliability, and ethical considerations is part of the supplier selection process.
• Supplier relationships are crucial because they can significantly impact a business's operations and performance.
• What benefit do strong supplier relationships provide in terms of flexibility?

  Accommodating order changes
• The sourcing and purchasing function involves identifying and procuring goods and services from external suppliers.
• Match the procurement function with its purpose:

  Sourcing and Purchasing ↔️ Identifying and procuring goods

  Supplier Selection ↔️ Choosing the best suppliers

  Price Negotiation ↔️ Ensuring cost-effectiveness

  Order Placement ↔️ Managing order fulfillment

  Delivery Assurance ↔️ Ensuring timely delivery
• Automation in procurement reduces manual effort and minimizes errors.


  True
• Choosing ethical suppliers protects a business's brand reputation and public image.


  True
• Sourcing and purchasing is a key aspect of procurement.


  True
• Strong supplier relationships improve reliability by ensuring suppliers prioritize and fulfill orders on time
• Procurement involves sourcing and purchasing goods and services needed by a business from external suppliers
• Order the key functions of procurement in a logical sequence.

  1️⃣ Sourcing and Purchasing

  2️⃣ Supplier Selection

  3️⃣ Price Negotiation

  4️⃣ Order Placement

  5️⃣ Delivery Assurance
• Cultivating strong supplier relationships is essential for a reliable, cost-effective, and innovative supply chain.


  True
• Match the aspect of procurement with its description:

  Sourcing and Purchasing ↔️ Identifying and procuring goods and services

  Supplier Selection ↔️ Choosing suppliers based on factors like price

  Price Negotiation ↔️ Negotiating favorable terms with suppliers

  Order Placement ↔️ Managing the fulfillment process
• E-procurement uses digital platforms and tools to streamline the procurement
• Automation in procurement reduces manual effort and minimizes errors.

  True
• What does the sourcing and purchasing function of procurement involve?

  Identifying and procuring goods and services