The following statements below are either TRUE or FALSE; decide which of the following are true or false. Write down your answer on your answer page, for example, $6.$ True

$5.$ Run a credit check on a supplier before doing business with him. $($True $/$ False$)(1)$

$6.$ One of the aims of the procurement management reform process is to help create a more informed company. $($True $/$ False$)(1)$

Supply Chain Management Assignment Guide $32|$ P a g e

$7.$ Outsourcing is not a good strategy for a supply chain. $($True $/$ False$)(1)$

$8.$ The first price is always the best price $$ accept the first offer that the supplier puts on the table. $($True $/$ False$)(1)$

$9.$ Honesty is an important quality of ineffective buyer$-$supplier relationships. $($True$/$ False$)(1)$

Answer the following questions

$10.$ List the three $(3)$ key components to Total Cost of Ownership $($TCO$)$ calculations. $(3)$

$11.$ Market Intelligence is a term currently experiencing rapid growth and broader acceptance within professional supply chain management firms. Define market intelligence in a supply chain management context. $(1)$

$12.$ The primary objective of conducting a supply market analysis is$\_\_\_\_\_\_.(1)$

$13.$ The primary goal for strategic sourcing is to lower the cost of the goods and services while maintaining or increasing the total value delivered from suppliers. There are seven stages in the development of a sourcing strategy. List the seven $(7)$ steps in developing a sourcing strategy. $(7)$

$14.$ Discuss each of the four $(4)$ common mistakes made when negotiating with suppliers. $(8)$

$15.$ With reference to centralised purchasing structures, one major decision that has to be made when building the purchasing firm is the degree of centralisation. In a paragraph, explain the concept centralised purchasing firm. $(2)$

$16.$ Name all eleven $(11)$ benefits of centralised procurement $($purchasing$).(11)$

$17.$ Several types of participants make up a distribution channel for example industrial distributors, distribution service firms and buying offices. Name the other four $(4)$ participants in the distribution channel. $(4)$

Total: $46$