Cognitive Sourcing Survey 2019 And Maturity Model V4 - Final

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Quizzes Created: 1 | Total Attempts: 100
Questions: 46 | Attempts: 100

Cognitive Sourcing Survey 2019 And Maturity Model V4 - Final - Quiz

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Questions and Answers
  • 1. 

    To what extent does your organization leverage artificial intelligence (AI) in its procurement and supply chain processes today?

    • A.

      I don't know

    • B.

      No use

    • C.

      Limited use in one area only

    • D.

      Moderate use

    • E.

      Broad use in multiple areas

    Rate this question:

  • 2. 

    What are your plans for incremental investment in AI technologies in a procurement context?

    • A.

      I don't know

    • B.

      No plans

    • C.

      Minor investment to test ROI

    • D.

      Major investment within the next 24 months

    • E.

      Major investment within the next 12 months

    Rate this question:

  • 3. 

    Sources of insight can include internal information, generated from enterprise systems, as well as external information sources. About what % of your Direct Materials spend is captured in your Spend Analysis systems or tools?

    • A.

      We extract data from our ERP to analyze Spend

    • B.

      Less than 50%

    • C.

      50-75%

    • D.

      75-95%

    • E.

      More than 95%

    Rate this question:

  • 4. 

    How often are your spend analysis and related sources of insights refreshed?

    • A.

      Annually (or less frequent)

    • B.

      Semi-annually

    • C.

      Quarterly

    • D.

      Monthly

    • E.

      Continuously

    Rate this question:

  • 5. 

    How are your sources of insights integrated with your sourcing and RFQ systems?

    • A.

      Manual

    • B.

      Semi-Automated

    • C.

      Fully Automated (little or no manual operations)

    Rate this question:

  • 6. 

    How do you use external sources of insight?

    • A.

      Track market indices for only our most strategic categories.

    • B.

      Track market indices for most or all relevant categories.

    • C.

      Market indices are analyzed by BI tools and supplemented by third party reports.

    • D.

      Market indices, analyst reports, and other sources are automatically fed into category-specific applications.

    • E.

      Category-specific applications are enabled by AI to provide and execute recommendations.

    Rate this question:

  • 7. 

    How does your organization track current events in your market?

    • A.

      Informally through traditional media and publications.

    • B.

      Some automated alerts monitor our most strategic suppliers

    • C.

      Automated alerts setup for all suppliers.

    • D.

      Artificial Intelligence agents monitor alerts to provide and execute recommendations.

    Rate this question:

  • 8. 

    What visibility do you get beyond Tier 1?

    • A.

      Virtually None

    • B.

      Limited Visibility

    • C.

      Good Transparency

    • D.

      Full Transparency

    Rate this question:

  • 9. 

    How many suppliers (direct materials) are being actively managed by your organization?

    • A.

      Less than 150

    • B.

      151 - 400

    • C.

      401 - 1000

    • D.

      1001 - 1500

    • E.

      More than 1500

    Rate this question:

  • 10. 

    What percentage of these suppliers actively participate in a sourcing event / competitive bid at least one time per year?

    • A.

      Less than 20%

    • B.

      21% to 30%

    • C.

      31% to 50%

    • D.

      51% to 70%

    • E.

      More than 70%

    Rate this question:

  • 11. 

    What percentage of total direct materials spend is strategically sourced or managed vs. the "tail spend"? (Strategically sourced means a defined category strategy communicated to management and sourcing teams have a strong relationship with the suppliers.)

    • A.

      Less than 30%

    • B.

      30 - 50%

    • C.

      50 - 75%

    • D.

      75 - 90%

    • E.

      More than 90%

    Rate this question:

  • 12. 

    What is the frequency of scheduled sourcing events or RFQs per year?

    • A.

      Primarily ad hoc, not executed on a regular pre-defined schedule

    • B.

      Primarily Annual events with most suppliers

    • C.

      Quarterly events for key sub commodities or groups of suppliers.

    • D.

      Weekly events executed for key sub commodities or suppliers.

    • E.

      Continuous sourcing with suppliers or sub commodities as needed based on market conditions.

    Rate this question:

  • 13. 

    What percentage of your total suppliers participate in a sourcing event or competitive bid process at least once a year?

    • A.

      Less than 30%

    • B.

      30 - 50%

    • C.

      50 - 75%

    • D.

      75 - 90%

    • E.

      More than 90%

    Rate this question:

  • 14. 

    How does your organization typically negotiate with suppliers? Please check all that apply.

    • A.

      Primarily price or cost-focused negotiations

    • B.

      Focus on long-term partnerships

    • C.

      Competitive situations are leveraged whenever possible (e.g. 2 or more suppliers compete for awards)

    • D.

      Target costs or external benchmarks are shared with suppliers

    • E.

      Cross-functional considerations (technology, risk, quality) are considered

    • F.

      Artificial Intelligence provides negotiation recommendations

    Rate this question:

  • 15. 

    On average, how many calendar days does it take to conduct a strategic sourcing event from baseline collection to contract execution?

    • A.

      Less than 10 Days: We're integrated with suppliers and utilize an AI- enabled platform to automate many of the event tasks

    • B.

      10 - 30 Days: Most events are "two bids and a buy"

    • C.

      30 - 60 Days: We keep events small and digestible and utilize tools to ease baseline collection and analysis

    • D.

      More than 60 Days: Tools and techniques allow us to consolidate into fewer, much larger events that take more time to collect bids and obtain internal approvals

    Rate this question:

  • 16. 

    On average, how much time is spent collecting and preparing baseline data for a sourcing event?

    • A.

      Less than 2 days: Our systems are all integrated with data cleansed and maintained on a near continual basis, and our AI platform processes baseline preparation automatically.

    • B.

      2 - 5 days: Our systems are all integrated with data cleansed and maintained on a continual basis

    • C.

      5 - 15 days: Our events are very small and suppliers help provide the data

    • D.

      15 - 30 days: Data is extracted from a Spend cube and/or purpose-built category management tools, so a majority of the time is fine-tuning and getting stakeholder approval.

    • E.

      More than 30 days: Need to pull data from multiple sources, requires manual manipulation, then push into a reporting tool to gain stakeholder approval.

    Rate this question:

  • 17. 

    On average, how much time is spent designing and building an RFx?

    • A.

      Less than 1 day: We are on stand-by to run an event on any given day given market conditions.

    • B.

      1 - 5 days: Our events are simple and we typically start from what was done previously.

    • C.

      5 - 14 days: We typically start from previous events / templates, but review for updates.

    • D.

      More than 14 days: We reference previous events / templates, but given the large scope of events we revisit and potentially redesign events.

    Rate this question:

  • 18. 

    On average, how much time is spent evaluating bids and providing feedback to suppliers?

    • A.

      Less than 1 day: Our AI tools provide insights and analysis for Category Manager review, and distribute feedback.

    • B.

      1 - 5 days: Our events are limited in scope so we can typically churn through analysis and feedback quickly, albeit manually.

    • C.

      3 - 5 days: Our sourcing tools provide nice reports and collaboration tools to analyze bids, then make feedback fairly easy to distribute.

    • D.

      5-10 days: Our sourcing tools help aggregate bid information, but we analyze in a separate BI tool then distribute feedback.

    • E.

      More than 10 days: We run large events and although our category-specific tools help aggregate bid data and analysis, it takes time to interpret the results then distribute internally to prepare feedback.

    Rate this question:

  • 19. 

    On average, how much time is spent preparing for and conducting negotiations?

    • A.

      Less than 1 day: Our AI tools identify negotiation opportunities which are communicated to suppliers who we share an open-book relationship with.

    • B.

      1-3 days: Although we manually prepare for negotiations, the scope is limited so we're able to complete it quickly.

    • C.

      3-5 days: We extract the data from our sourcing tools to feed our BI tool and/or create our negotiation materials.

    • D.

      5-7 days: Our sourcing tools help identify negotiation opportunities.

    • E.

      More than days 7: We run large events and although our category- specific tools identify negotiation opportunities, it takes time to align internally and prepare for large-scale negotiations.

    Rate this question:

  • 20. 

    Who typically leads preparation for the overall commodity/category strategy?

    • A.

      The Category/Commodity Manager

    • B.

      The Category/Commodity Manager + supporting business analysts

    • C.

      Cross-functional alignment with input from manufacturing partners, engineering, supply chain, and finance

    • D.

      Automated commodity/category strategy digital playbooks sourced from an AI/cognitive platform?

    Rate this question:

  • 21. 

    On average, how much time is spent making award decisions and gaining internal approvals?

    • A.

      Less than 2 days: Our AI tools aggregate bid data, provide data insights, and present those insights and recommendations to Category Managers to approve.

    • B.

      2 - 6 days: Although we manually analyze and award it goes fairly quickly because our events are limited in scope

    • C.

      6 - 10 days: Our final analysis is executed outside our sourcing system, then distributed to decision makers, and awards are made.

    • D.

      10 - 14 days: Our sourcing tools allow us to analyze and award quickly, so most of time is spent reviewing with stakeholders and gaining internal approvals.

    • E.

      More than 14 days: We run large events and although our category- specific tools help, it takes time to conduct final analysis to make award decisions, distribute those to stakeholders, and announce award decisions.

    Rate this question:

  • 22. 

    What Sources of Insight are typically utilized for negotiations?  Please check all that apply.

    • A.

      Historic Data from enterprise systems (ERP, Business Intelligence, Spend Analytics)

    • B.

      Benchmark pricing for standard parts from distributors or third parties.

    • C.

      Contextual insights around supplier financial health, raw material input costs, foreign exchange, news sources.

    • D.

      Market intelligence from third-party research, analysts, published indices

    • E.

      Community insights from peer companies engaged with similar commodity groups or strategic suppliers

    • F.

      Data or research collected from company's supplier network

    • G.

      Attribute-based, bottoms up "should cost" models

    • H.

      AI-generated risks and opportunities

    Rate this question:

  • 23. 

    What are the key challenges in your negotiation preparation and execution today?

    • A.

      Relevant benchmark/market trned data, poor supplier relationships

    • B.

      RFX solution to efficiently execute and manage bids, lack of negotiation skill/guidance

    • C.

      Unachievable targets

    • D.

      Challenging commodity market environments

    • E.

      Underlying business externalities (e.g. forex, tariffs/trade, cutstomer markets, global economy)

    Rate this question:

  • 24. 

    How would you evaluate the effectiveness of the procurement function as a partner in your organization?

    • A.

      Excellent - Procurement is well-regarded and is seen as a key business partner

    • B.

      Fair - Procurement has more influence with some functions than others

    • C.

      Poor - Procurement operates is silos and has difficulty collaborating

    Rate this question:

  • 25. 

    How involved is Supply Chain & Procurement in NPI?

    • A.

      1 (Limited or no input during design phase, operating in a silo)

    • B.

      2

    • C.

      3 (Visibility and input into development decisions and timelines)

    • D.

      4

    • E.

      5 (Full data consistency and visibility across all functions), supply chain participates in trade-off decisions

    Rate this question:

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 13, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 02, 2019
    Quiz Created by
    Webadmin
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