CORE Exam Dumps : Supply Management Core Exam

Current Situation: Supplier A has provided reliable and high-quality components to FGH, Inc. for many years.

Price Increase Notification: Supplier A informs FGH of a significant anticipated price increase due to building a new production facility.

Negotiation Directive: FGH's supply manager is directed to negotiate a new contract only if Supplier A agrees to maintain current pricing.

Preparation for Negotiation: Determining if the parts can be produced elsewhere provides the supply manager with leverage in negotiations. This research will show whether FGH has alternative sources or if Supplier A holds a monopoly on the components.

Negotiation Leverage: Knowing that there are alternative suppliers can strengthen FGH's negotiating position, possibly leading to more favorable terms or at least a better understanding of the market.

References

ISM. (n.d.). Strategic Sourcing and Supplier Selection.

CIPS. (n.d.). Effective Negotiation Strategies in Procurement.

A supplier's willingness to deal with rejected materials, fill surges in orders, and provide technical support is most influenced by maintaining good supplier relationships.

Creating teaming agreements with suppliers: This can formalize collaboration but does not inherently foster goodwill and responsiveness.

Negotiating inclusive terms and conditions: Important, but it sets the framework rather than influencing day-to-day willingness and responsiveness.

Maintaining good supplier relationships: This builds trust, encourages cooperation, and ensures that the supplier is willing to go beyond the contractual terms to support the buying organization.

Including such conditions in the statement of work: Ensures these terms are contractually agreed but may not impact the supplier’s willingness as much as a strong relationship would.

Therefore, maintaining good supplier relationships will most affect the supplier's willingness to address these issues.

References:

Supplier relationship management strategies.

Institute for Supply Management (ISM) guidelines on supplier collaboration.

Once the project has been approved by senior management and the team has been selected, the next logical step for the supply manager is to conduct market research to identify possible suppliers. This involves gathering and analyzing data about the market to understand the availability of suppliers, their capabilities, and their potential fit with the organization's needs. Market research helps to identify potential suppliers that can meet the raw material requirements, ensuring a robust supply base is developed to support the category management plan. References:

"Purchasing and Supply Chain Management" by Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, and James L. Patterson

Institute for Supply Management (ISM) guidelines on supplier selection and market research