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A supply manager for JKL, Inc., a high-tech services firm, is asked to expedite an order for training on new fire suppression equipment. The equipment Is due to arrive within the month and must be put into immediate use to comply with governmental regulations. A training company has already been found by JKL's human resources department and has committed to providing classes on a rush schedule. JKL has not done business with this training firm before, although they have received excellent evaluations from other clients.
In this situation, which of the following is the FIRST action the supply manager should take?

• A. Notify the training company that no contract exists because human resources did not have proper authority
• B. Review the training company's pricing
• C. Request an invoice from the training company
• D. Negotiate a master service agreement and SOW with the training company

DEF, Inc. is a multinational oil company expanding into a new geographic region. The firm's policy is to purchase locally for its operations whenever possible. Thus, DEF needs to find sources of materials, basic equipment, and standard bulk items within the new region. Which of the following should DEF do FIRST?

• A. Issue a Request for Information (RFI)
• B. Conduct a suppliers' conference
• C. Issue a Request for Proposal (RFP)
• D. Issue a Request for Quotation (RFQ)

A manufacturer develops a new product that will be more efficient and easier to use than previous versions.
Prototypes are created, evaluated, and approved, and the company begins large scale production.
Three months into production, costs rise beyond expectations, due to one of the raw materials not providing the economies of scale predicted by the design team. This results in a net loss at the recommended price point. Which of the following actions should the design team have taken to prevent this situation?

• A. Buy the raw material in bulk
• B. Create a larger number of prototypes for testing and evaluation before going to large scale production
• C. Collaborate with the supplier in the design process to understand the production method
• D. Renegotiate price and find other suppliers to offset the high costs

ABC, Inc. has a supply management department responsible for placing orders. In spite of this, a designer from ABC's engineering department places an order with Supplier X for several products.
When the shipment arrives, it is rejected by the receiving department, as they cannot verify the order with supply management. To avoid this situation, the designer should have

• A. coordinated product needs with supply management prior to order commitment
• B. requested supply management issue an "after the fact" purchase order
• C. notified the supervisor of the engineering department of the immediate need for the item
• D. delayed placing the order until after looking at comparable items from other suppliers

A software design firm has traditionally done most of its work in-house, including support services and distribution management. The firm is planning a large expansion, and is evaluating how the various departments can support It. The chief executive officer (CEO) recommends concentrating on core competencies to increase the firm's agility and emphasize what differentiates them from competitors. Which of the following is the BEST way supply management can support this recommendation?

• A. Identify opportunities to outsource non-core business functions
• B. Develop and implement an organization-wide strategic sourcing plan
• C. Conduct a spend analysis on strategic items
• D. Develop better e-procurement processes