The use of procurement cards to simplify purchases of low cost/low complexity items is BEST suited for which of the following categories of spend?

• A. Leverage
• B. Tactical
• C. Critical
• D. Strategic

The price of raw materials for a critical product is highly volatile. The supplier will not commit to long-term pricing due to the dramatic swings of raw material price. In this situation, the buying organization should

• A. allow the supplier to change pricing on a fixed schedule based on a price index with a maximum allowable change
• B. demand that the supplier maintain pricing for a longer period of time to mitigate the raw material price swings
• C. find another supplier for the product who can propose a method to manage volatility
• D. source the material itself to get better pricing directly from the raw material manufacturer

A procurement specialist reviews a report from a financial agency about a potential supplier. The report reveals that the supplier had a lien against some of its assets a few years ago, that the supplier has had several delayed payments over the last few months, and that the supplier's debt-to-equity ratio equals 2.0. Which of the following is the BEST course of action for the procurement specialist to take?

• A. Inform senior management of the potential supplier's financial status
• B. Exclude the supplier from the bidding process
• C. Inform current suppliers about the potential supplier's financial status
• D. Use the information in considering whether to qualify the supplier

A business unit conducts discussions with key management members that Include category overviews, contracting executive summaries, local content spending plans, sourcing timelines, and cost management/value creation. These presentations can BEST be described as which of the following?

• A. Spend analysis
• B. Commodity segmentation
• C. Category action plan
• D. Contracting plan

A manufacturing firm has a product that has been experiencing shrinking profits. The product requires several high-tech parts with strict specification tolerances. The contract for these parts was recently renegotiated with favorable terms, including lower costs. The firm's supply manager has been asked to reduce the product's costs and improve margins. Given this situation, which of the following is the BES1 course of action that the supply manager can recommend?

• A. Issue a request for information (RFI) to other suppliers
• B. Conduct a quality function deployment (QFD) analysis
• C. Renegotiate pricing with the current supplier
• D. Review the part requirements and design with engineering