Term
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Definition
| ____ is when unused capacity or advertising space is auctioned off (eg: airline capacity, bill boards) |
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Term
| Describe the difference between Public and Private Exchanges |
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Definition
| ____ exchanges: need to be invited; ____ exchanges: anyone can do business |
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Term
| Describe the difference between Buyer-centric and Seller-centric Exchanges |
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Definition
| ____ exchanges: organized by buyers; ____ exchanges: organized by sellers |
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Term
| Describe the difference between Consortium and Independent Exchanges |
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Definition
| ____ exchanges: companies have the same needs; ____ exchanges: companies approach it individually |
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Term
| Describe the difference between Vertical and Horizontal Exchanges |
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Definition
| ____ exchanges: narrow, but deep, with full-service in one industry; ____ exchanges: anyone can do business |
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Term
| What does the Y-axis represent in a Reverse Auction? |
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Definition
| The ____-axis in a Reverse Auction represents the dollar amount that the supplier is willing to charge the buyer for the RFQ |
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Term
| What does the X-axis represent in a Reverse Auction? |
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Definition
| The ____-axis in a Reverse Auction represents time |
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Term
| Explain the Winner's Curse |
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Definition
| Suppliers prepare months and see that their lowest bid is not the best, and just submit bids to get the business; they "win" the auction, but they then have no margin/profit |
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Term
| List some characteristics of good items for which to run a Reverse Auction |
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Definition
Some characteristics of a ____ are:
1) basic or commodity goods
2) high-cost jobs
3) industries with lots of suppliers |
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Term
| What are the benefits for the Buyer in a Reverse Auction? |
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Definition
The benefits for the ____ in a Reverse Auction are:
1) Lower cost
2) Find the true market price
3) quicker negotiations |
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Term
| What are the benefits for the Suppliers in a Reverse Auction? |
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Definition
The benefits for the ____ in a Reverse Auction are:
1) Finding out where they stand based on competitors
2) Gaining market insight |
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Term
| What is the primary benefit for suppliers of using a 3rd Party during Reverse Auctions? |
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Definition
| The main benefit for ____ during a Reverse Auction is that it can alleviate concerns that the ____ will submit fake/dummy bids |
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Term
| Define Champion, in relation to reverse auctions |
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Definition
| The ____ is the person to lead and coordinate the initiative/reverse auction |
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Term
| What are the 5 Common Myths about Reverse Auctions? |
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Definition
The 5 ____ about _____ are:
1) They are always only about the price
2) They damage the buyer-supplier relationship
3) They are a passing fad
4) Over time, the savings will decrease
5) They are only suitable for commodities |
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Term
| Define Intermediated Exchange |
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Definition
| A ____ is an exchange between buyers and suppliers where there is a 3rd party (auction provider) that intermediates or facilitates the exchange |
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Term
| Define Demand Side Collaborative Planning |
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Definition
| In ____ Planning, the customer and supplier communicate, and decisions are made based off of future demand |
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Term
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Definition
| A ____ is a formal communication where two or more people come together to seek a mutual agreement |
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Term
| When are Face-to-Face Negotiations more likely to occur than Automatic/Electronic Negotiations? |
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Definition
| When the value and risk are high, ____ negotiations are more common than ____ |
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Term
| What is the most critical component of a successful negotiation? |
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Definition
| The most critical component of a successful ____ is preparation (90%!) |
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Term
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Definition
| ***Best Alternative To a Negotiated Agreement*** |
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Term
| What is the difference between Positions and Interests? |
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Definition
| The ____ is the needs and wants, the manifestations of these desires, the upfront alignment shown; the ____ is the underlying motivation |
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Term
| What are the 3 components of Triangle Talk |
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Definition
The 3 components of ____ are:
1) Know exactly what you need
2) Know exactly what they want
3) Propose action in a way that they can accept |
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Term
| What are the 5 Steps of a Negotiation? |
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Definition
The 5 steps of a ____ are:
1) Identify or anticipate a purchase requirement
2) Determine if it is required
3) Plan for it
4) Conduct it
5) Execute the agreement |
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Term
| Who should participate in a purchase negotiation? |
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Definition
| While the purchaser should be the primary point of contact in an ____, anyone that can add value should be present |
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Term
| ***How does a Negotiator know what is important to the organization?*** |
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Definition
| ***A negotiator knows what is important to the ____ by making sure the goals and the objectives of the negotiation are strategically aligned with the overall goals and strategies of the ____*** |
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Term
| Ranges have to do what in order for a negotiation to occur? |
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Definition
| ____ have to overlap some for a negotiation to occur (this is the area open for negotiation!) |
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Term
| List 5 Common Weaknesses of Planning |
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Definition
5 ____ of Planning are:
1) Failing to commit sufficient time
2) Failing to establish clear objectives
3) Failing to formulate convincing arguments
4) Failing to consider a counterpart's needs
5) Believing quick and clever is enough |
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Term
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Definition
| ____ is the ability to influence other people or organizations |
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Term
| What are usually the 3 Most Effective Sources of Power? |
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Definition
The 3 Most Effective Sources of ____ are:
1) Informational
2) Legitimate
3) Expert |
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Term
| What are the 6 Sources of Negotiating Power? |
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Definition
The 6 Sources of ____ are:
1) Information
2) Reward
3) Coercive
4) Legitimate
5) Expert
6) Referent |
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Term
| Define Informational Power |
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Definition
| ____ Power is: having information and using that in a negotiation |
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Term
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Definition
| ____ Power is: basically, bribes |
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Term
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Definition
| ____ Power is: threatening the other party; punishing them for not signing a contract |
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Term
|
Definition
| ____ Power is: Deriving power from one's level of responsibility, based on one's title or level in an organization (IE: VPs have high ____ power) |
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Term
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Definition
| ____ Power is: relying on the opinion of someone very knowledgeable in an area |
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Term
|
Definition
| ____ Power is: Wanting to appear nice (EG: you are negotiating with your superior for a raise, but are less aggressive than you would be because the VP is there) |
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Term
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Definition
| A ____ is a movement away from a position by offering something of value to the other party |
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Term
| What are the 11 Tactics of Negotiation? |
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Definition
The 11 ____ of Negotiation are:
1) Lowball
2) Highball
3) Honesty and openness
4) Silence
5) Trial balloon
6) Questions
7) Caucus
8) Price increase
9) Best and final offer
10) Planned concessions
11) Venue |
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Term
| Explain the High/Lowball Tactic |
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Definition
| The ____ tactic is when you offer way below the asking price; the ____ tactic is when you ask for way above the price |
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Term
| When is the Honesty and Openness Tactic effective? |
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Definition
| The ____ tactic is only effective when your counterpart uses it as well, else you might get taken advantage of |
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Term
| What does the Silence Tactic hope to do? |
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Definition
| The ____ Tactic hopes to create ambiguity and nervousness for your counterpart, thus making them concede |
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Term
| Define the Trial Balloon Tactic |
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Definition
| The ____ Tactic is a test of opinion; float an idea out to see how your counterpart reacts |
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Term
| When are Win-Win Negotiations most likely to occur? |
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Definition
____ Negotiations are most likely to occur when:
1) The items are strategic or important
2) Trust between parties exists
3) Both parties endorse this approach |
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Term
| What are the 3 Win-Win Methods? |
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Definition
The 3 ____ Methods are:
1) Expanding the pie
2) Logrolling
3) Cutting the costs for compliance |
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Term
| What are some examples of how to Expand the Pie? |
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Definition
| Some examples of ____ are offering JIT and VMI |
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Term
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Definition
| ____ is when both parties identify an important issue, and both give up something equal importance; quid pro quo |
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Term
| What is an example of Cutting the Costs for Compliance |
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Definition
| An example of ____ is keeping the price the same, but guaranteeing 100% defect-free (Adds value, but don't have to inspect items for quality) |
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Term
| What are some of the added complexities and challenges of International Negotiations? |
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Definition
Some of the added complexities and challenges of ____ are:
1) Substantial extra time and effort required
2) Culture shock
3) Barriers and obstacles
4) Need for translators |
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Term
| ***What are the 4 main points from Getting to Yes?*** |
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Definition
***The 4 main points from ____ are:
1) Focus on interests, not positions
2) Invent options for mutual gains
3) Objective criteria in evaluating solutions
4) Separate people from positions*** |
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Term
| What are the 6 Steps in the Contracting Process? |
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Definition
The 6 Steps in the ____ Process are:
1) Request for quote (RFQ)
2) Suppliers' proposals
3) Negotiation
4) Contract building
5) Contract award purchase order
6) Contract administration |
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Term
| What are the 3 components of the Law of Agency |
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Definition
The 3 components of the ____ are:
1) Principle (company)
2) Agent
3) 3rd party seller (supplier) |
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Term
| Define the Principal in the Agency Concept |
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Definition
| The ____ in the Agency Concept is the buying organization |
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Term
| Define the Agent in the Agency Concept |
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Definition
| The ____ in the Agency Concept acts on behalf of the buying organization (EG: the employee) |
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Term
| Define the Third Party in the Agency Concept |
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Definition
| The ____ in the Agency Concept is the person with whom you would like to do business; the seller |
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Term
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Definition
| A ____ is made after rejecting the suppliers' offer; supplier must decide whether or not to accept |
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Term
| What are the 4 Outcomes of an Offer? |
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Definition
The 4 ____ of an Offer are:
1) The offer time may lapse
2) The offer may be rejected
3) The offer may be revoked
4) The offer may be accepted |
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Term
| In the USA, the Uniform Commercial Code (UCC) Can be relied on to cover all but what 3 important terms? |
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Definition
The 3 important terms not covered by the ____ are:
1) A description of the parties involved
2) A description of the basic subject of the contract, and statement of work (including dates)
3) A clearly definable or determinable quantity |
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Term
| What are the 4 Elements of a Contract? |
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Definition
The 4 Elements of a ____ are:
1) Mutual agreement
2) Consideration
3) Capacity of the parties
4) Legality |
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Term
|
Definition
| ____ states that something of value needs to be exchanged for a contract to be valid |
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Term
| Explain the requirement of Capacity of the Parties |
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Definition
| The requirement of ____ states that both need authority to make a decision for the company; willing and able |
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Term
| Does the buyer or supplier benefit more from Fixed Price Contracts? |
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Definition
| The buyer benefits more from ____ Contracts |
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Term
| Does the buyer or supplier benefit more from Cost Based Contacts |
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Definition
| The supplier benefits more from ____ Contracts |
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Term
| What are the benefits of Long-Term Contracts? |
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Definition
| The benefits of ____ are: better cost; better buyer-supplier relationships; economies of scale; more negotiating power; less time exploring other suppliers |
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Term
| What are the Risks of Long-term Contracts? |
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Definition
| Some of the risks of ____ are: quality; laziness/complacency; bankruptcy |
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Term
| What are the 3 Essential Elements of a Contract? |
|
Definition
The 3 ____ of a contract are:
1) Offer
2) Acceptance
3) Consideration |
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Term
| What are the 3 Reasons for Cancellation of Orders? |
|
Definition
The 3 Reasons for ____ are:
1) For default
2) For convenience of the purchaser (anticipatory breach)
3) By mutual consent |
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Term
| Define Green Procurement (Mitsubishi definition) |
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Definition
| ____ is striving to acquire materials characterized by low levels of environmental stress |
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Term
|
Definition
| ____ is the act of misleading purchases regarding the environmental practices of a company, or the environmental benefits of a product |
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Term
| What are the 6 Sins of Greenwashing? |
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Definition
The 6 ____ of Greenwashing are:
1) Fibbing
2) Unsubstantiated claims
3) Irrelevance
4) Hidden trade-off
5) Vagueness
6) Relativism |
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|
Term
| Define the Sin of Fibbing |
|
Definition
| The Sin of ___ is: blatant misrepresentation |
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Term
| Define the Sin of Unsubstantiated Claim/Vagueness |
|
Definition
| The Sin of ____/____ is: when the label doesn't tell much or is hard to prove |
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Term
| Define the Sin of Irrelevance |
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Definition
| The Sin of ____ is: advertising something that should have been done anyway |
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Term
| Define the Sin of Hidden Trade-off |
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Definition
| The Sin of ____ is: (example) saying the manufacturing plant is LEED certified, but that doesn't say anything about the product being green |
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Term
| Define the Sin of Relativism |
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Definition
| The Sin of ____ is: (example) claiming the "most fuel-efficient SUV in class", if the consumer cared about fuel efficiency, they wouldn't buy an SUV |
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Term
|
Definition
| ____ is a the standard for environmental behavior and practices for companies |
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Term
| What are the 6 Myths of Being Green? |
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Definition
The 6 Myths of ____ are:
1) Buying and being green always cost more
2) Buying and being green comes with a loss of quality
3) You need to be perfect
4) You need to be a "green expert" to buy green
5) Green issues are "too big" for one person to have an impact
6) You need to do "all or nothing" |
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Term
| Define a Complete Chain of Custody |
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Definition
| A ____ is taking responsibility for the entire supply chain, example: ensuring the entire supply chain is green |
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Term
| What are some examples of External Forces? |
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Definition
| Examples of ____ are: global competition; mergers, acquisitions, and consolidations; government regulation; technology; increased product variety/shorter life cycles; social responsibilities |
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|
Term
| What are some examples of External Forces? |
|
Definition
| Examples of ____ are: global competition; mergers, acquisitions, and consolidations; government regulation; technology; increased product variety/shorter life cycles; social responsiblities |
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|
Term
| What are 4 Examples of Social Responsibilities? |
|
Definition
4 Examples of ____ are:
1) Green
2) Sustainable
3) Fair trade
4) Ethics |
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Term
| What is the main concept in the article "Who Really Does the Buying?" |
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Definition
| The main concept in the article ____ is: the buying center, and 6 different roles in the buying center |
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Term
| ***Define Buying Center*** |
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Definition
| ***The ____ is the purchasing department, plus all other stakeholders in the result of a decision*** |
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Term
| ***What are the 4 Questions to Ask when Approaching a Sale?*** |
|
Definition
***The 4 Questions to Ask when ____ are:
1) Who is in the buying center (6 roles)
2) Who are the powerful buyers (what kind of power exists, and who has it?)
3) What do they want, what is their motivation?
4) How do they perceive us?*** |
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Term
| ***What are the 6 Different Roles in a Buying Center?*** |
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Definition
| ***The 6 Different Roles in a ____ are: Initiator; Decider; Influencer; Buyer; End user; Gatekeeper*** |
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Term
|
Definition
| The ____ recognizes that a company problem can be solved or avoided by acquiring a product or service |
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Term
|
Definition
| The ____ says yes or no to a contemplated purchase |
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|
Term
|
Definition
| The ____ has a say in whether a purchase is made and what is bought |
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Term
|
Definition
| The ____ obtains the purchased product or service |
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|
Term
|
Definition
| The ____ consumes the purchased product or service |
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Term
|
Definition
| The ____ controls information and vendor access to corporate decision makers; determines which vendors get the chance to sell |
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Term
| What are the Pros of Dynamic Bidding, from the Sun Microsystems case? |
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Definition
| The ____ of Dynamic Bidding, from the ____ case are: cost savings; convenience; efficiency; speed; leverage over competitors |
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Term
| What are the Cons of Dynamic Bidding, from the Sun Microsystems case? |
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Definition
| The ____ of Dynamic Bidding, from the ____ case are: relationships with suppliers; loss of suppliers |
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