11. Companies
that experience late deliveries or low product quality from their supplier may
resort to insourcing.

12. Companies
that lack internal expertise in a specific functional area would likely
consider insourcing.

13. Product
parts, processes, and product assembly should all be designed by the
manufacturing firm to assure a single-minded approach that the suppliers can
follow. Supplier involvement in these design phases is considered
counterproductive.

14. Manufacturers
typically have very little influence over second and third tier suppliers when
compared to the influence they hold over first tier suppliers.

15. Some
strategic supplier agreements reward the highest performing suppliers with a
share of the cost reductions resulting from supplier improvements, additional
purchasing contracts, or contract extensions on existing contracts.

16. According
to the text, driving your suppliers to offer the lowest possible prices, which
in turn will lower your cost of goods sold, could prove to be harmful to
buyer-supplier relationships and may also decrease the quality levels of the
items produced using your suppliers’ low cost components.

17. Developing
a collaborative negotiation infrastructure include four steps: building a
preparation process, develop a negotiation database. Design a negotiation
launch process, and institute a feedback mechanism.

18. Benchmarking
is the practice of copying what other businesses do best.

19. A
4PL, commonly referred to as a lead logistics provider, is a trucking company
that also provides tracking services.