CORE Exam Dumps : Supply Management Core Exam

Cost Savings Reporting: Accurate cost savings reporting is essential for demonstrating the value that supply management brings to the organization.

Alignment on Definitions: When the executive team and internal stakeholders are aligned on the definitions of cost savings, it ensures that the reported savings are understood and accepted across the organization.

Value Demonstration: This alignment shows that supply management is effectively contributing to the company’s financial performance and strategic goals.

Other Considerations: While auditability, baseline adjustments, and risk management are important, the primary reason for alignment is to clearly demonstrate the value added by supply management.

References

ISM Professional Series: Cost Management

CIPS Knowledge on Financial Management in Procurement

Identify Stakeholder Needs: Understanding the specific performance issues as identified by the stakeholder.

Collaborative Measurement Development: Working with the stakeholder to develop specific, measurable, achievable, relevant, and time-bound (SMART) performance metrics.

Contract Amendment: Including these agreed-upon performance metrics in the contract ensures that the supplier is contractually obligated to meet these standards.

Monitor and Review: Regularly reviewing these performance metrics to ensure continuous improvement and compliance by the supplier.

References

Supplier Performance Management Literature

Contract Management Best Practices

Service Level Agreement Guidelines

Understand the Acquisition Impact: Recognize the potential risks associated with Supplier A acquiring a smaller firm and possibly transferring contracts.

Protect Quality Standards: Ensuring that EFG's stringent quality requirements are met is crucial.

Consent of Assignment Clause: Adding this clause ensures that Supplier A cannot transfer the contract to another entity without EFG’s consent, maintaining control over the quality.

Negotiate Terms: Discuss and agree upon the specifics of this clause with Supplier A to safeguard EFG’s interests.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

Gattorna, J. (2015). Dynamic Supply Chains: Delivering Value Through People. Pearson.