Module B2

Questions marked with a * are required

Module B2 Assessment

Please Answer All Questions Before Submitting.

It Is a requirement, to pass this Module, for you to attempt and submit each assessment.

This quiz will close at 11.59 PM on Thursday 30th of March.

Enjoy and Good Luck!

- EY

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* Q1. What are the main purposes of conducting a PESTLEE analysis? Please select the correct answers

PESTLEE allows you to focus on changing and important macroeconomic factors impacting any industry

PESTLEE allows you to identify the competitive rivalry within the supplier market

PESTLEE makes sure that you do not leave any factors out when conducting a supply market analysis

PESTLEE helps you to identify threats and opportunities per macroeconomic factor

PESTLEE helps to determine how easy or how difficult it is to be profitable

* Q2. How can a SWOT analysis help procurement? Please select the correct answers

Look out for new suppliers if there is opportunity (e.g. for growth)

Improve forecasts; establish long term contracts if appropriate

Strengthen relationships with strategic suppliers in case of strength/opportunity combination

* Q3. Why is a clear understanding of cost drivers important? Please select the correct answers

Develop insight in prices and maintain prices

Helps in developing a negotiation strategy

To identify dying and emerging market segments

* Q4. When having good understanding of your suppliers’ cost drivers, a potential cost savings opportunity can be in the form of offering shorter payment terms to your suppliers, allowing them to unlock working capital and consequently save costs.

True

False

* Q5. If the spend with a certain supplier is high, analysing the product mix is a key first step to identify cost savings opportunities. Why is that?

* Q6. If supplier market has slow growth (e.g. computer hardware), then there is an opportunity, as a buyer, you have more bargaining power.

True

False

* Q7. In case you have limited spend on a supplier that operates in a commoditized supply market, your sourcing aim is to simplify sourcing as this is a non-critical spend category.

True

False

* Q8. Which of the following statements about Porter’s 5 forces are true? Please select the correct answers

Threat of new entrants is high if economies of scale are essential

Threat of substitutes is low if switching costs for customers are low

Suppliers have significant power if buyer’s spend is fragmented and uncoordinated

Buyer power is high if purchase volumes represent a significant part of the suppliers’ sales

Rivalry among suppliers is strong if industry growth is small

* Q9. A buyer’s market is defined by the fact that buyers have an advantage. Depending on the sourcing complexity their sourcing aim is to minimise risk or simplify sourcing.

True

False

* Q10. Strategic spend categories are characterised by high sourcing complexity and high supply market complexity

True

False

* Q11. In order to get better insights into the macro-environment of a certain industry, you would need to conduct a..

SWOT analysis

Porter 5 forces analysis

PESTLEE analysis

* Q12. Apart from analysing internal and external factors that can affect your buiness, state how a SWOT analysis can help procurement in strategic sourcing?

Understand the supplier competitive landscape and any gaps to identify opportunities for negotiation

Understand regulatory requirements which will cause a product to be in a state of constraint

Better understand bargaining power

* Q13. Which of the following statements about frameworks is correct? Please select the correct answers.

Frameworks identify the appropriate sourcing strategy based on the right data inputs

Frameworks help to consolidate and structure information that help guide you in strategic decision making, e.g. develop the right sourcing strategy

Frameworks such as PESTLEE, SWOT and Porter 5 forces are commonly used frameworks in advanced procurement organisations

* Q14. The supply market analysis should result in a shortlist of suppliers that are able to fulfil your requirements to buy and for which you can initiate RFX documentation.

True

False

* Q15. Which of the following statements are true?

Detailed financial information of publicly listed companies can be found in company annual reports or analyst reports (e.g. JP Morgan, Deutsche Bank)

The supply market analysis is a market intelligence report based on facts and should cover both regional and global suppliers

The supply market analysis should be conducted for your entire supplier base regardless of high or low spend