Docsity
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Docsity AI
Docsity AI
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search for your university

Find the specific documents for your university's exams

Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

Purchasing Services: Indirect Spending and Transportation Management, Exams of Supply Management

Western Governors University (WGU)Supply Management

A comprehensive overview of purchasing services, focusing on indirect spending and transportation management. It delves into the definition of indirect spending, its significance in organizational budgets, and the role of logistics in managing the flow of goods and services. The document also explores transportation management strategies, including inbound, outbound, and reverse logistics, as well as the impact of deregulation on the transportation industry. It further examines key transportation modes, carrier selection, and the importance of supply chain security. The document concludes with a discussion on outsourcing logistics services and the benefits of partnering with third-party logistics providers (3pls).

Typology: Exams

2024/2025

Available from 03/08/2025

WORLD-NURSE
WORLD-NURSE 🇺🇸

1.6K documents

1 / 10

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
PURCHASING SERVICES: CHAPTER
17(100% ACCURATE)
Indirect Spending - ANSWERSSum of all purchased goods and services that are not a
direct part of products or services delivered to customers
May be > 50% of organization's total purchases
Logistics Defined - ANSWERSThat part of SCM that plans, implements, and controls
efficient, effective forward and reverse flow and storage of goods, services, and related
information between point of origin and point of consumption in order to meet
customers' requirements
Transportation Management - ANSWERSInbound logistics
Intra-organizational movements
Outbound logistics
Recovery and recycling
a.k.a. reverse logistics
Inbound Logistics - ANSWERSAll inbound shipments moving from supplier to buyer
facilities
Often included in sourcing negotiations
Can be substantial part of contractual terms
Intraorganizational Movement - ANSWERSMovement of materials between production
facilities
Movement in and out of intermediary storage facilities
May be moved via private fleet
Increasingly reduced using JIT and lean production techniques
Outbound Logistics - ANSWERSLink between organization and its customers
Historically called physical distribution
Since deregulation, increasing involvement by supply management
Reverse Logistics - ANSWERSDesigning and operating sustainable supply chains
May also include shipment of repairable items for refurbishment
Often not a priority
Role of Core Competencies - ANSWERSOutsource non-core competencies to expert
third-party logistics providers (3PLs)
Transportation
Logistics services
Warehousing
pf3
pf4
pf5
pf8
pf9
pfa

Partial preview of the text

Download Purchasing Services: Indirect Spending and Transportation Management and more Exams Supply Management in PDF only on Docsity!

PURCHASING SERVICES: CHAPTER

17(100% ACCURATE)

Indirect Spending - ANSWERSSum of all purchased goods and services that are not a direct part of products or services delivered to customers May be > 50% of organization's total purchases Logistics Defined - ANSWERSThat part of SCM that plans, implements, and controls efficient, effective forward and reverse flow and storage of goods, services, and related information between point of origin and point of consumption in order to meet customers' requirements Transportation Management - ANSWERSInbound logistics Intra-organizational movements Outbound logistics Recovery and recycling a.k.a. reverse logistics Inbound Logistics - ANSWERSAll inbound shipments moving from supplier to buyer facilities Often included in sourcing negotiations Can be substantial part of contractual terms Intraorganizational Movement - ANSWERSMovement of materials between production facilities Movement in and out of intermediary storage facilities May be moved via private fleet Increasingly reduced using JIT and lean production techniques Outbound Logistics - ANSWERSLink between organization and its customers Historically called physical distribution Since deregulation, increasing involvement by supply management Reverse Logistics - ANSWERSDesigning and operating sustainable supply chains May also include shipment of repairable items for refurbishment Often not a priority Role of Core Competencies - ANSWERSOutsource non-core competencies to expert third-party logistics providers (3PLs) Transportation Logistics services Warehousing

Transportation Deregulation - ANSWERSDesigned to open up markets to greater economic competition Encouraged increased supply management role in procurement and management of transportation services Major U.S. Deregulation Legislation - ANSWERSAir Cargo Deregulation Act (1977) Air Passenger Deregulation Act (1978) Negotiated Rates Act (1993) Motor Carrier Act (1980) Effects of Deregulation - ANSWERSReduced economic regulation Allowed negotiation of lower transportation rates and higher service levels with individual carriers Significantly reduced carrier profit margins New sense of carrier competition Managing Transportation Services - ANSWERSTransportation affects ... Production and scheduling systems Inventory levels and carrying costs Warehousing Material handling A New Role for Supply Management - ANSWERSMore active in sourcing most, if not all, transportation services, not just inbound Carrier selection 3PL provider selection Negotiate long-term freight agreements Potential Candidates for Outsourcing - ANSWERSSupplier and carrier management Reverse logistics Loss and damage claims management Service level reporting Carrier and 3PL performance management When and Where to Control Transportation - ANSWERSFOB delivered (destination) FOB shipping point (origin) Use preapproved or otherwise acceptable carrier list Third party broker or intermediary Consolidation with other small shipments Domestic Shipping Terms - ANSWERSFOB delivered (destination) Seller is required to transport goods at own risk and expense Seller retains title to goods and risk of loss until satisfactory offloading and delivery at consignee's facility Total Cost - ANSWERSCost is only one of several variables

Can handle very quantities of product Pipeline Carrier Disadvantages - ANSWERSExtremely slow High fixed cost Fixed routes and rights-of-way Intermodal Transportation - ANSWERSOften uses containers Can be complex with multiple carriers involved Carrier Selection - ANSWERSCommon carrier Contract carrier Private carrier Common Carrier - ANSWERSMust serve general public without discrimination based on published rates for specific goods Contract Carrier - ANSWERSDoes not hold itself out to serve general public Private Carrier - ANSWERSManufacturer or distributor that operates own transportation equipment May be either owned or leased Exempt Carrier - ANSWERSIs free from any type of economic regulation by Surface Transportation Board (STB) Topics in Transportation Negotiation - ANSWERSShipper's commitment to minimum amount of freight volume Frequency and timing of shipments Establishment of information-sharing systems Current Transportation Issues - ANSWERSSupply chain security Infrastructure condition Traffic congestion Supply Chain Security - ANSWERSGovernment rules Certified Cargo Screening Program "10 + 2" rule Certified Cargo Screening Program - ANSWERSCertified Cargo Screening Facilities activities standards from TSA Physical access controls Personnel security Procedural security CCSP Chain of Custody Standards for Certified Air Cargo - ANSWERSDocumentation

Application Authentication 10 + 2" Rule - ANSWERSOriginated from Security and Accountability for Every Port Act of 2006 (SAFE) Rule requires that ... Importers electronically transmit their 10 data elements to CBP at least 24 hours before loading any container onto ship bound for U.S. Infrastructure Condition and Traffic Congestion - ANSWERSAbility of ports to handle mega-container ships and mega-tankers Deeper draft and increased width Performance-Based Logistics - ANSWERSCollaborative business model based on meeting mutual interests of both buyer and logistics service provider Both parties must agree on explicit outcomes, goals, and objectives and how service provider can help achieve them Effective PBL Systems - ANSWERSCommitment to mutual collaboration and alignment of interests Development of sound sourcing strategy Outsourcing Logistics Services - ANSWERSGain access to critical and timely data Develop systems visibility to material shipments Develop closer relationships with fewer providers Select Providers - ANSWERSCustoms brokers Freight brokers (air and surface) Warehousing and DC operations Packaging and export documentation Delivery services An Effective Approach to 3PL Selection - ANSWERSPlan Select Implement Improve Partner Plan - ANSWERSDefine specific logistics service requirements and how they will be measured and evaluated Select - ANSWERSTarget best-in-class logistics service providers Implement - ANSWERSShare supply chain information to deliver superior value

Internal Methods of Managing Indirect Spend - ANSWERSRestructuring to establish accountability Automating requisition/sourcing process External Methods of Managing - ANSWERSReverse auctions Purchasing consortia Supply management outsourcing Reverse Auctions - ANSWERSAllows buyers and suppliers to communicate in real time from anywhere in the world via Internet Can easily generate savings of 10 - 20% Purchasing Consortia - ANSWERSNow source of revenue by companies offering these services Challenge is determining what purchases can be leveraged Supply Management Outsourcing - ANSWERSAllow other firms to manage an organization's indirect spend Need for high levels of trust Enabling Tactics and Strategies - ANSWERSZero-based budgeting Pre-budget savings Organizational structure Data Collection and Consolidation - ANSWERSDifferent units purchasing same goods from same suppliers at widely different prices Restructuring to Establish Accountability - ANSWERSDesigned to prevent maverick spend Purchases from unauthorized sources Clearly defined chain of command and oversight Automating the Requisition/ Sourcing Process - ANSWERSAutomated routing, approval, and purchase order or release creation Standardization - ANSWERSAllows aggregation of indirect spend across the organization Volume discounts Commodity Coding - ANSWERSNeed for accurate data coding to identify actual spend levels May be coded into different expense categories Sourcing Professional Services - ANSWERSWorking closely with key suppliers Leveraging volume across business units

Implementing better control systems Clearly Defined Scope - ANSWERSAvoids misunderstandings Provides detailed guidance to provider Deliverables Milestones Deadlines Budget Optimize the Supply Base - ANSWERSInterview potential sources of supply Use preferred supplier list Price discount or volume-leveraging Develop Standardized Contracts - ANSWERSUse of contract template to ensure that all major legal issues are addressed May be online Scope must be clearly defined Incentive systems Clearly Defined Scope 1 - ANSWERSHow will scope changes be handled? Renegotiate if changes are too significant Includes nondisclosure agreement Inserts language as to whom is supposed to accomplish the work Move to a Centralized Procurement Structure - ANSWERSAllows buyer to leverage volume Provides oversight to expenditures Increases accountability of consultants Greater objectivity Improved negotiation Professional Services Database - ANSWERSCumulative knowledge database Prevents duplication of effort or redundancy by different units Allows review of past projects Preferred supplier list database Consultant Evaluation and Selection - ANSWERSSupplier quality Cost competitiveness Potential delivery performance Technological capability Monitor Results - ANSWERSParameters Quality Cost management Delivery Technical support Wavelength

...rail carrier