CORE Exam Dumps : Supply Management Core Exam

To improve the situation where stakeholders request more items despite achieving lower per-item costs, the best long-term approach is to work with leadership to implement a more effective demand management program. This program would help in managing and controlling the demand for items, ensuring that the total expenditures do not increase unnecessarily. It involves planning, monitoring, and controlling the usage and requisition of goods and services to align with organizational goals and budgets.

References

CIPS (Chartered Institute of Procurement & Supply). Demand Management in Procurement.

ISM (Institute for Supply Management). Strategies for Effective Demand Management.

Company’s Situation: The oil & gas exploration company needs to update its fleet of offshore vessels but is unsure about the best combination of vessel types and quantities.

RFP Purpose: An RFP is used when the buyer knows the results it requires but needs detailed proposals from suppliers to determine the best solution.

Comprehensive Proposals: RFPs allow suppliers to propose various solutions, including different combinations of vessel types and quantities, and explain how their proposals will meet the company's needs.

Evaluating Solutions: The RFP process provides the company with the information needed to evaluate the most efficient and effective options for updating its fleet.

Conclusion: Issuing an RFP is most appropriate to obtain detailed and varied proposals that will help the company make an informed decision.

References

CIPS. (n.d.). The Use of Requests for Proposals (RFPs) in Procurement.

ISM. (n.d.). Best Practices for RFP Development and Evaluation.

Context: The firm is expanding and looking to concentrate on core competencies to increase agility and differentiate from competitors.

Core Competencies: These are the unique capabilities that give a firm a competitive advantage.

Supply Management’s Role: To support the CEO’s recommendation, supply management should focus on outsourcing non-core activities. This allows the firm to allocate more resources and focus on what they do best.

Outsourcing: By identifying non-core functions that can be outsourced, the firm can become more agile, reduce costs, and improve efficiency.

Evaluation: Conducting a spend analysis or developing better e-procurement processes are useful, but they don't directly address the CEO's strategy of focusing on core competencies. An organization-wide strategic sourcing plan is broader and less focused on core vs. non-core activities.

Conclusion: The best way for supply management to support the recommendation is by identifying and outsourcing non-core business functions.

References

Core Competency Theory by Prahalad and Hamel.

Strategic Management of Supply Chains by David Simchi-Levi.

Supply Chain Management: Strategy, Planning, and Operation by Sunil Chopra.