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ISM Leadership and Transformation in Supply Management Sample Questions (Q158-Q163):

NEW QUESTION # 158
A supply management department's resources have been stretched thin, and there are few opportunities for staff growth. To improve this situation, the supply manager plans to implement an e-sourcing system, which will streamline routine procurements and allow more time for supply professionals to concentrate on value-added tasks. The supply manager wants to introduce the system in a way that will help motivate the department staff. Which of the following will MOST likely bring about this result?

A. A shift from a transactional to a strategic approach
B. A greater flexibility in department staffing
C. A reduction in procurement process costs
D. A lower total cost of ownership

Answer: A

Explanation:
* Resource Optimization: Implementing an e-sourcing system will automate routine tasks, freeing up resources for more strategic activities. This shift allows supply professionals to focus on value-added tasks that can enhance the company's competitive advantage.
* Motivation Through Empowerment: Staff are more likely to be motivated when they see their roles evolving from mundane transactional activities to more impactful strategic tasks. This transition can lead to increased job satisfaction and professional growth.
* Strategic Impact: A strategic approach to supply management involves activities such as supplier relationship management, strategic sourcing, and risk management. These activities have a more significant impact on the company's overall performance.
* Long-Term Benefits: While cost reduction and efficiency are important, the long-term benefits of a strategic approach include improved supplier partnerships, innovation, and agility in responding to market changes.
* Reference: This approach aligns with best practices in supply chain management and strategic sourcing, as discussed in sources like the Supply Chain Management Review and the Chartered Institute of Procurement & Supply (CIPS) guidelines.

NEW QUESTION # 159
An organization wishes to implement principles of world-class logistics management. Which of the following is the MOST appropriate type of goal for integrating such activities?

A. Management
B. Divisional
C. Functional
D. Strategic

Answer: D

Explanation:
Goal Setting in World-Class Logistics Management:
Integrating world-class logistics involves aligning logistics activities with the overall strategic objectives of the organization.
Strategic goals ensure that logistics functions contribute to the broader long-term objectives and competitive positioning of the company.
Types of Goals:
Divisional Goals: Focus on specific divisions, might lack integration with overall company strategy.
Functional Goals: Concern specific functions within logistics, but may not align with broader company strategy.
Management Goals: Directed towards managerial performance and oversight.
Strategic Goals: Encompass company-wide objectives, ensuring all logistics activities support the long-term vision and competitive advantage.
Conclusion: Setting strategic goals ensures that logistics management aligns with the company's overall strategy, driving long-term success and competitiveness.
Reference:
"Strategic Logistics Management" by Donald Bowersox, David Closs, and M. Bixby Cooper Best practices in logistics management from the Council of Supply Chain Management Professionals (CSCMP)

NEW QUESTION # 160
DEF Inc. is a mid-sized manufacturing company. In recent years, the products DEF manufactures have depended on goods and services that are more complex than those in the past. As a result, the company needs to rely on suppliers located at longer distances, increasing the need for managing risks. In response, DEF's supply management team begins a comprehensive risk-planning effort. The team analyzes their current situation and gauges the impact of supply disruptions. Which of the following should the team do NEXT?

A. Train all affected departments on threat detection measures
B. Decide how often contingency plans are to be reviewed and revised in the future
C. Establish the firm's risk tolerance and ways to ensure against problems
D. Outline contingency plans and continuity measures

Answer: D

Explanation:
* Current Situation Analysis: The team has already analyzed their current situation and gauged the impact of supply disruptions. This is a crucial first step in risk management, as it identifies the potential vulnerabilities and the consequences of disruptions.
* Next Steps in Risk Management: Once the risks are identified, the next logical step is to outline contingency plans and continuity measures. This ensures that the company has a proactive approach to mitigate the identified risks.
* Contingency Planning: This involves developing specific actions and procedures that will be implemented in case of a supply disruption. These plans should be detailed and actionable to ensure quick response times.
* Continuity Measures: These are measures that ensure the company can continue operations with minimal disruption. This might include alternative sourcing strategies, safety stock levels, and flexible supply chain configurations.
* Reference: According to the risk management frameworks such as ISO 31000 and supply chain best practices, outlining contingency plans and continuity measures is a critical next step after risk identification and assessment.

NEW QUESTION # 161
BCD, Inc. is a worldwide household appliance maker that is distinguished in the marketplace by its reputation for customer service. In recent months, BCD has found its competitive position slipping due to increased order fulfillment time and slower response time to distributor requests for parts. Inquiries at the company's local facilities suggest that the problem is a combination of unreliable delivery and erratic production scheduling. Given this situation, which of the following should BCD do FIRST?

A. Create a special planning group to review and revise plant production schedules
B. Establish quantitative time-phased targets for ongoing performance improvement
C. Implement a corporation-wide software solution to improve communication between local plants and headquarters
D. Change procedures so that all material contracts are negotiated globally from headquarters

Answer: A

Explanation:
Given the issues of unreliable delivery and erratic production scheduling, the most effective first step for BCD, Inc. is to create a special planning group to review and revise plant production schedules.
Root Cause Analysis: By focusing on production schedules, BCD can address one of the root causes of increased order fulfillment time and slower response times.
Expert Focus: A dedicated planning group allows for a focused, expert-driven approach to identify and rectify scheduling issues, ensuring that production aligns better with demand.
Immediate Impact: Revising production schedules can provide a relatively quick improvement in operational efficiency and reliability, directly impacting order fulfillment and response times.
Reference:
Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson Education.
Stevenson, W.J. (2018). Operations Management. McGraw-Hill Education.

NEW QUESTION # 162
A supply manager is concerned that not all procurement employees are following the newly released policies and procedures. Which of the following would be MOST helpful in ensuring that the policies and procedures are being followed?

A. Develop metrics with a standard method for monitoring
B. Feature the policies and procedures in a monthly newsletter with a communication plan
C. Conduct general training so that employees are aware of the policies and procedures
D. Require that the head of procurement address the policies and procedures in an upcoming staff meeting

Answer: A

Explanation:
To ensure that procurement employees follow the newly released policies and procedures, developing metrics with a standard method for monitoring is the most helpful approach. Leadership and transformation management documents emphasize the importance of establishing clear, measurable standards and monitoring compliance. This approach provides objective data on adherence to policies and procedures, allowing for timely identification and correction of any deviations. Reference highlight that effective monitoring and metrics are critical for maintaining accountability and continuous improvement in organizational processes.

NEW QUESTION # 163
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ISM Leadership and Transformation in Supply Management Sample Questions (Q158-Q163):

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