ERP Vendor Management 3

Question 1

What is a 'preferred vendor' designation in ERP systems?

Accepted Answer

A vendor pre-selected by default for sourcing specific materials based on performance and agreements

Answer

A preferred vendor is designated as the default source for a specific material or service based on factors like negotiated pricing, quality, and reliability.

Question 2

What is the role of an 'info record' in ERP vendor management?

Accepted Answer

A record linking a vendor to a material with pricing and delivery conditions

Answer

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.

Question 3

In ERP vendor management, what does 'vendor consolidation' aim to achieve?

Accepted Answer

Reducing the total number of vendors to lower costs and simplify management

Answer

Vendor consolidation reduces the supplier base to concentrate spending, improve negotiating leverage, and simplify procurement administration.

Question 4

Which ERP report helps management identify vendors that account for the majority of procurement spend?

Accepted Answer

ABC Analysis / Spend Analysis

Answer

ABC Analysis or Spend Analysis categorizes vendors by spend volume, helping management focus negotiation and relationship efforts on high-impact suppliers.

Question 5

What action should be taken in ERP when a vendor is permanently decommissioned?

Accepted Answer

Set the vendor to 'blocked' or 'marked for deletion' to preserve audit history

Answer

Marking a vendor as blocked or flagged for deletion preserves transactional history for audit purposes while preventing new transactions from being created.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Vendor Management 3