CORE Exam Dumps : Supply Management Core Exam

The first step the supply manager should take in determining where savings can be found in indirect cost categories is to establish a baseline using current spend data. Understanding the current spending patterns provides a foundation for identifying opportunities for cost savings. It allows the supply manager to analyze spending trends, categorize expenses, and pinpoint areas where efficiencies can be improved or costs can be reduced. This data-driven approach ensures that any subsequent actions are based on accurate and comprehensive information.

References:

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management.

Institute for Supply Management (ISM). (2020). ISM Glossary of Key Supply Management Terms.

The best course of action is to determine with senior management and internal stakeholders the acceptable levels of risk for each product. This collaborative approach ensures that the organization has a clear understanding of its risk tolerance and can develop appropriate strategies to mitigate those risks. It involves assessing the potential impact of risks on the business and aligning risk management strategies with the company's overall objectives. This preparation is crucial for effective negotiations with suppliers, ensuring that all parties are on the same page regarding risk management.

References

Risk Management in Supply Chains by David L. Olson and Desheng Dash Wu

COSO (Committee of Sponsoring Organizations of the Treadway Commission) ERM (Enterprise Risk Management) Framework

ISO 31000 Risk Management Standards

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.