It increases the distance that components and inputs must be moved.

Question

BlackTom AI · Accepted Answer

The question presents a statement and asks you to evaluate which option aligns with it. The key phrase is that it increases the distance that components and inputs must be moved.
Option 1: E-Procurement. This refers to purchasing activities conducted electronically, often within an organization’s internal system or via online catalogs. While it can streamline ordering and reduce processing time, it doesn't inherently increase or decrease the physical distance goods travel; its impact is primarily on the workflow and administrative efficiency rather than transportation distance.
Option 2: Global Sourcing. This involves obtaining goods or services from suppliers located in different countries or far regions. The core implication is greater geographic and logistical distance, which typically translates into longer lead times, more complex shipping arrangements, potential customs hurdles, and increased reliance on international logistics. This directly matches the idea of "increases the distance" goods must move.
Option 3: Maverick Spending. This term describes purchases made outside approved procurement processes or without proper governance. While it reflects governance and control issues, it does not inherently affect the physical or logistical distance goods travel. The concept is about compliance, governance, and cost control, not distance.
Option 4: Reverse Auction. A reverse auction is a procurement method where suppliers compete to offer the lowest price for a contract, often conducted online over a limited time. It can affect cost and supplier competition, and may influence speed of procurement, but it does not inherently increase the physical distance inputs must be moved. Its primary effect is on price discovery, not geography-related transportation distance.
In summary, among the options, only Global Sourcing intrinsically implies engaging suppliers across long geographic distances, thereby increasing the distance goods must travel. The other choices focus on procurement processes, governance, or cost dynamics rather than the transport distance.

2025 Win BUSM 381 Sec01 Chapter 11A Quiz

It increases the distance that components and inputs must be moved.

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