CORE Exam Dumps : Supply Management Core Exam

Supplier B's terms of 4%/5, Net 30 are more advantageous. This means a 4% discount is available if the invoice is paid within 5 days, whereas Supplier A offers a 2% discount for payment within 15 days. Paying early (5 days) to get a 4% discount is more beneficial in terms of cost savings compared to a 2% discount for paying within 15 days. The greater discount percentage within a shorter period represents better cash flow management and cost savings.

References:

Financial Terms in Procurement

Cash Flow Management Techniques in Supply Chain

Initial Steps in Policy Creation: The supply manager needs to ensure the policy is successfully adopted across the organization.

Engaging Internal Stakeholders: Hosting a meeting with key internal stakeholders is the first step to gather input, address concerns, and ensure the policy aligns with organizational needs.

Stakeholder Buy-in: This approach helps in gaining the support and buy-in from those who will be directly affected by the policy, making its implementation smoother.

Policy Review and Feedback: Reviewing the proposed policy with internal stakeholders allows for adjustments based on practical insights and encourages a sense of ownership among stakeholders.

References

CIPS. (n.d.). How to Develop and Implement a Procurement Policy.

Supply Chain Management Review. (2017). Effective Procurement Policy Development and Implementation.

In a situation where internal stakeholders are not in agreement with the CEO’s directive, creating a steering committee is the best course of action for supply management. This committee can facilitate discussion, ensure all perspectives are considered, and guide the project’s direction in a structured manner. Polling external stakeholders, selecting the best source of supply, and performing cost regression analysis are useful actions but do not address the need for internal alignment and strategic guidance. References: Change management principles, stakeholder management strategies, project management frameworks.