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MNP2601-25-EX06
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Market forms, for example oligopolistic markets, are used by economists to analyse national and international economic cycles and are of lesser, if any, value to purchasing and supply managers.
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If buyers can understand suppliers’ cost structures, they can help suppliers identify areas which could potentially improve costs.
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Once a contract is signed with an organisation, the service provider is not allowed to sign contracts with other organisations for the duration of the contract.
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Tenders and quotes are usually used to choose a supplier of leverage items.
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The lower the inventory levels, the fewer total assets employed and the higher its turnover.
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Maverick spending means that employees make unauthorised purchases.
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The multiple parties involved in global supply chains increase the probability of supply disruptions.
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Standard items are more readily available.
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A spend analysis conducted during the strategic sourcing process refers to analysing suppliers’ financial statements to evaluate their financial situation.
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Backward integration refers to activities on the supply side of the supply chain and forward integration refers to activities on the demand side of the supply chain.
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