Knowledge quiz

It’s time to put what you’ve learned to the test, get 7 questions right to pass this unit.

Choose the correct answer.

Direct purchases are related to facility management, while indirect purchases are essential for the final product.

Direct purchases include items like office supplies, while indirect purchases consist of raw materials.

Direct purchases are necessary for the final product, while indirect purchases support the business but are not part of the final product.

Direct purchases are usually larger in scale compared to indirect purchases.

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True

False

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Category management is not necessary for companies with diverse purchasing needs.

Category management helps companies manage purchases in a systematic and strategic way to achieve better business outcomes.

All companies should manage their purchases in the same way to ensure efficiency.

Category management primarily focuses on increasing profits and ignoring other business objectives.

There are three correct answers.

Cost Savings

Fast Invoicing

Reduced Risk

Marketing Success

Sustainability

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To group items, components, raw materials, and services based on their cost.

To create a hierarchical structure consisting of main and sub-categories.

To create separate categories for direct and indirect purchases.

To manage suppliers more efficiently within the organization.

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Purchasing spend represents a small fraction of the company's total spend.

All purchases can be managed in a similar way.

A key objective in purchasing is to ensure that purchased commodities and services match the requirements of the business.

The changes in the business environment have little impact on how companies manage purchasing.

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Managing individual unit-specific contracts with suppliers

Ensuring each unit handles its purchases separately

Consolidating demand across the units and creating market competition

Implementing risk management strategies

There are two correct answers.

Reduced purchasing spend, uniform supplier management, and better stakeholder satisfaction.

Cost savings, improved risk management, harmonized supplier relationship management, and increased efficiency.

Decreased supplier diversity, streamlined buy-side processes, and continuous learning opportunities.

Enhanced supply market complexity, category taxonomy development, and strategic supplier management.