Vendor Management Flashcards
7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Vendor Management flashcards as text
What is a 'preferred vendor' designation in ERP systems?
Answer: A vendor pre-selected by default for sourcing specific materials based on performance and agreements
A preferred vendor is designated as the default source for a specific material or service based on factors like negotiated pricing, quality, and reliability.
What is the role of an 'info record' in ERP vendor management?
Answer: A record linking a vendor to a material with pricing and delivery conditions
A purchasing info record links a specific vendor to a material and stores negotiated price, delivery time, and conditions used to auto-populate purchase orders.
In ERP vendor management, what does 'vendor consolidation' aim to achieve?
Answer: Reducing the total number of vendors to lower costs and simplify management
Vendor consolidation reduces the supplier base to concentrate spending, improve negotiating leverage, and simplify procurement administration.
Which ERP report helps management identify vendors that account for the majority of procurement spend?
Answer: ABC Analysis / Spend Analysis
ABC Analysis or Spend Analysis categorizes vendors by spend volume, helping management focus negotiation and relationship efforts on high-impact suppliers.
What action should be taken in ERP when a vendor is permanently decommissioned?
Answer: Set the vendor to 'blocked' or 'marked for deletion' to preserve audit history
Marking a vendor as blocked or flagged for deletion preserves transactional history for audit purposes while preventing new transactions from being created.
What is the primary benefit of integrating vendor management with an ERP's financial module?
Answer: It provides real-time visibility into accounts payable, accruals, and vendor liabilities
Integration between vendor management and financials enables real-time tracking of liabilities, cash flow forecasting, and accurate accrual postings without manual reconciliation.
In ERP vendor management, what is the purpose of a 'source list'?
Answer: A record specifying which vendors are authorized to supply a given material during a defined period
A source list defines the approved vendors and time periods for supplying a specific material, enabling the ERP system to enforce sourcing rules automatically.