Procurement and Sourcing Flashcards
6 cards from real Supply Chain and Logistics practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Procurement and Sourcing flashcards as text
What is nearshoring in sourcing strategy?
Answer: Relocating production or sourcing to nearby countries rather than distant ones
Nearshoring moves operations or sourcing to geographically close countries to reduce lead times, logistics costs, and time zone differences.
What is a Kraljic matrix used for?
Answer: Classifying purchased items by supply risk and profit impact to guide sourcing strategy
The Kraljic matrix plots items on axes of supply risk and profit impact to classify them as routine, leverage, bottleneck, or strategic.
What is the primary goal of early supplier involvement (ESI)?
Answer: Incorporate supplier knowledge into product design to improve cost and manufacturability
ESI brings suppliers into the product design phase to leverage their technical expertise, improving quality, cost, and time-to-market.
What does 'supply risk' refer to in procurement?
Answer: Probability of supply disruption affecting the ability to obtain required goods or services
Supply risk encompasses factors like supplier financial instability, geopolitical events, natural disasters, and single-source dependency.
What is a supplier scorecard?
Answer: A structured tool for evaluating supplier performance across key metrics
A supplier scorecard tracks KPIs like on-time delivery, quality, responsiveness, and cost to provide objective performance ratings.
What is the purpose of a Request for Quotation (RFQ)?
Answer: Request pricing from suppliers for a defined quantity of specified goods or services
An RFQ asks suppliers to provide specific pricing for clearly defined products or services, enabling direct price comparison.