SCM 450

FINAL assignment
SERIAL NO.
Name : Saadman Sakib Obak

ID : 1812234630 SCORE

Written -
Section : 1

Total -

Date : By 11:59 PM on 22 May, 2021

❖ Suppose you are in a job interview for a post in supply chain department. The interviewer is saying that the
company’s supply chain department is filled by people who are highly experienced. Those people joined the
company with a business major degree from a reputed university most with finance background. The company
has never hired someone with supply chain major yet. Now the interviewer is asking you to say what
difference will be added there if the company hires you who is a supply chain major graduate? (Give two
points to answer within the given space on this page) [Bonus Question]

If the company hires me as a supply chain major graduate they will get many benefits like

1. As a supply chain graduates I have proper knowledge of every aspects of supply chain which
can help then to improve their supply chain system and profit maximization

2. Forecast, procurement and transportation are the 3 major thing of the supply chain
department, as a supply chain graduate I know the system of how to perform better in these
and enhance the supply chain system, also can give them a number by doing some
mathematical approach on these 3 sectors so that the company can get a marginal advantage

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 SCM 450
FINAL assignment

Essay Questions: Answer all six questions given below.

1. What are the advantages of GPO? (Mention any two benefits) [5 points]

1. GPO can give a small company to a ‘Big company pricing’ as it is created to manage sourcing and
aggregated contracts on behalf of a group of company so with collective buying power every member
receives considerable discount on product and services

2. GPO can provide an ally where every member can be benefited because when different professionals
come together for a common goal then surely there will be exchange of information and share some of
the best practice

2. Why should we do source to settle? (Mention any two reasons) [5 points]

1. Source to settle enables an effective approach to fulfilling customer demand

2. Source to settle moves the organization toward the full scope of managing the entire supply chain by
cost avoidance, increased spend visibility and better regulatory compliance

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 SCM 450
FINAL assignment

3. What are the types of specifications that you can write? [5 points]

i) Performance specification- This specification targets operating characteristics such as

availability of a service. It focuses on outcomes rather than how to achieve them

ii)Design specification- A design specification outlines exactly how we want to perform

the supplier to make the product. There is no option of innovation in this specification

iii) Technological Specification- Technological specification used when required to

determine performance and design specification. They are typically used for engineering
and information technology requirement

4. What is Solicitation in Procurement? Answer in one full sentence. [5 points]

Solicitation is verbal or written request to the potential supplier for information, proposal or
quotation.

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 SCM 450
FINAL assignment

5. “Negotiation can be both collaborative and competitive” - explain this statement. [10 points]

(Briefly explain in two paragraphs)

Collaborative negotiation is a process where both parties come up with a common goal and
focusing on the issues that can be easily agreed on. Collaborative negotiation is a fair process
that derives a win-win outcome. In a win-win outcome, both the parties after negotiating a
deal leave the table after gaining something of value. It is also known as inclusive, interest-
oriented or problem-solving negotiations. Collaborative negotiation build trust between the
parties and make them work together in a single problem. This build trust on the parties which
makes the exchange of information.

On the other hand, there is competitive negotiation where the negotiators come up with the
intention of maximizing their own gains over the gains of whom they are negotiating with and
this create a I win-you lose situation. It is totally opposite of collaborative negotiation. Rather
finding a solution for a mutual benefit the parties try to benefit themselves, so it goes a rough
and hard bargaining for the negotiators

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 SCM 450
FINAL assignment

6. “Procurement department serves the organization”- briefly explain the statement? [10 points]

(Briefly explain in one small paragraph)

Procurement Department establishes a organization’s purchasing policies and

procedures. Procurement department helps to maintain the organizations financial well-
being. They procure goods and services designed to satisfy operational needs in the very
best possible value. They established procurement policies and procedures to make sure
their organization operates with integrity and therefore the marketplace. Procurement
department keeps operations moving smoothly because they monitor Supply chains and
take care of tedious objectives like negotiating contracts with vendors, so the
department has can focus on other things. By monitoring internal and external Supply
markets, purchasing agents prevent a shortage in vital materials, over purchasing, and
waste and maximize the profit of an organization. Ensuring quality goods and services at
the least possible value to continue the income and making profit

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