INCOTERMS
What does “Incoterms” stand for?
International Commercial Terms
Which supply chain model uses demand signals to trigger all activities, aiming to minimize inventory?
the pull-based supply chain model
What does ABC analysis help with in inventory management?
is classifying inventory to prioritize controls, typically by value or usage?
What is intermodal transportation and a key benefit
using multiple modes (e.g., truck, rail, ship) to move goods; reduces costs and increases flexibility
What is “total cost of ownership” in supplier selection?
evaluating not just price, but all lifecycle costs (maintenance, logistics, delays, etc.)
Which Incoterm starts with the letters "F" and is often used for shipping goods by sea?
FOB (Free On Board)
What is the “bullwhip effect” and why is it problematic?
the amplification of demand variability up the supply chain, causing inefficiency and excess inventory
In VMI (Vendor Managed Inventory), who makes the replenishment decisions and what’s a key benefit?
is the supplier, and it improves stock availability and reduces stockouts for the buyer?
Name a key document required for international ocean shipments to comply with export regulations.
the Export Declaration (or Shipper’s Export Declaration, Bill of Lading)
Describe dual sourcing and one benefit.
using two suppliers for the same input; it reduces supply risk and increases negotiation leverage?
Who creates and updates the official Incoterms rules?
International Chamber of Commerce (ICC)
How does S&OP (Sales & Operations Planning) contribute to supply chain resilience?
it aligns cross-functional plans to balance supply and demand, improving responsiveness to disruptions?
Which metric measures how efficiently a company replaces inventory sold during a period?
inventory turnover ratio
What is “reverse logistics” and give one example?
managing the return flow of goods, e.g., product returns, recycling, or repairs
Name one advanced digital tool used in strategic sourcing and a core advantage.
e-sourcing platforms (like Ariba); they enable faster, more competitive bidding and supplier management?
Which Incoterm means the seller is only responsible for making the goods available at their own premises?
EXW (Ex Works)
Which certification framework is widely adopted for supply chain sustainability reporting?
the GRI (Global Reporting Initiative)
Describe one advantage and one risk of JIT (Just-In-Time) inventory.
it minimizes inventory holding costs, but increases vulnerability to supply disruptions
What logistics strategy leverages pooling inventory at regional hubs to serve multiple markets efficiently?
centralized distribution or hub-and-spoke mode
What role do ESG (Environmental, Social, and Governance) criteria play in procurement?
ensuring ethical, legal, and sustainable supplier practices, reducing brand and compliance risk
Incoterms help buyers and sellers decide which party is responsible for what in a transaction. Name one responsibility clarified by Incoterms.
The responsibility for delivery, insurance, or customs clearance
Name a global disruption (other than COVID-19) that reshaped supply chain risk management in the last decade.
the Ever Given Suez Canal blockage (or the 2011 Japan earthquake/tsunami)
What is a multi-echelon inventory system and why is it valuable?
is inventory management across several stages/locations for optimization throughout the network
How do Incoterms affect risk and cost allocation in global logistics contracts?
they clarify which party is responsible for risks, costs, and tasks at each stage, preventing disputes
In supplier relationship management, what is “collaborative innovation” and its importance?
working with suppliers to co-develop new products or processes, enabling mutual growth and advantage