Module B1

Questions marked with a * are required

Please write down your personal details in the space provided below

* First Name :
* Last Name :
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* Please select your SBA from the drop down list below

* Please write down your SBU in the space provided below

* Procurement can be a driver of value by reducing Operating Costs, Spend and Net Working Capital.

True

False

* Which of the following procurement measures could you use to increase sales through new product development?

Process optimisation and automation

Optimise payment terms

Unlock supplier innovations

Reduction of product complexity

* After awarding a contract to a supplier, what are 2 possible savings drivers you may use to create further savings?

Supplier relationship management and Compliance management

Supplier relationship management and Process Improvement

Demand management and Process improvement

Demand management and Compliance management

* Select the 2 objectives of conducting spend analysis.

Identify opportunities for savings and expenses reductions

Understand what you are buying

Understand existing relationships with suppliers

* Which of the following is part of conducting a typical spend analysis?

Conducting market research on a commonly procured item

Collecting and normalising spend data

Identifying self-imposed constraints

* Which of the following is a demand lever which you may leverage to manage demand?

Encouraging re-use

Implementing inventory and logistics concepts

Outsourcing

Supplier relationship management

* Identifying synergies between products and services & cost savings opportunities fully describe the main purpose of having a standardised categorisation of groups of spend.

True

False

* Which of the following is a self-imposed procurement constraint?

Government-approved suppliers

Customer-selected suppliers

Supplier technology capabilities

Supplier quality certification

* Instead of restricting computer hard-disk drive buys to specifically 320 gb, procuring hard-disk drives with a minimum of 320 gb is a good example of how simplifying and/or standardising specifications can be used as a demand lever.

True

False

* How would you best describe the purpose of contract analysis?
1) A contract analysis should provide a clear understanding of key business terms, unit price list and scope of products & services
2) A contract analysis gives you a view of future contract expirations
3) A contract analysis provides an overview of spend under contract

Only statement 1 is correct

Only statement 2 is correct

Only statement 3 is correct

All statements are correct

* Which of the following categorisation sequence is correct?
1) Building maintenance and repair -> Aircon installation/servicing -> Facilities -> Facilities mgmt.
2) Building maintenance and repair -> Aircon installation/servicing -> Facilities mgmt. -> Facilities
3) Facilities mgmt. -> Facilities -> Building maintenance and repair -> Aircon installation/servicing
4) Facilities -> Facilities mgmt. -> Building maintenance and repair -> Aircon installation/servicing

Sequence 1 is correct

Sequence 2 is correct

Sequence 3 is correct

Sequence 4 is correct

* Which of the below statements on procurement constraints are correct?
1) Internal constraints are under an organization’s control and should be taken into account when conducting a spend analysis
2) Internal constraints are out of an organization’s control and should not be taken into account when conducting a spend analysis
3) External constraints are under an organization’s control and should be taken into account when conducting a spend analysis
4) External constraints are out of an organization’s control but should be taken into account to complete the sourcing profile

Only statement 1 is correct

Only statement 2 is correct

Both statement 1 and 4 are correct

Both statement 2 and 3 are correct

None of the above statements is correct

* How does understanding the unit price list in a contract helps in spend analysis?

* Having unclassified spend categories is one of the various hurdles that can obstruct an effective spend analysis. Explain how you can overcome this particular hurdle.

* A typical spend tree gives an overview of (sub) category spend and distinguishes addressable from non-addressable spend.

True

False