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P2P CYCLE

What should participants bring for this simulation?

 Random documents
 Historical procurement data of their commodity
 Their favorite book
 Company logo

What is the main goal of measuring KPIs in the P2P cycle?

 To identify bottlenecks and improve efficiency
 To increase purchase volume
 To punish suppliers
 To delay payments

Reducing the P2P cycle time primarily improves which of the following?

 Number of suppliers
 Supplier prices
 Cash flow and project delivery speed
 Employee satisfaction only

What can help reduce approval delays?

 Hiring more staff
 Ignoring approval processes
 Increasing paperwork
 Streamlining workflows and digital approvals

What does a bottleneck commodity mean in Kraljic Matrix?

 High risk, low impact
 Low risk, high volume
 Non-critical
 Easily replaced

Invoice processing time can be shortened by:

 Delaying payments
 Manual entry
 Automating invoice matching and approvals
 Increasing supplier numbers

What is the typical impact of negotiating better supplier terms?

 Longer lead times
 Improved delivery times and cost savings
 Poor quality
 Increased prices

Supplier lead time affects which part of the P2P cycle?

 Delivery time
 Payment release
 PO creation
 Invoice processing

What is a strategic commodity according to Kraljic?

 Low risk, low impact
 High value, high risk
 Low value, high volume
 Easily substitutable

Which event can unexpectedly increase P2P cycle times?

 Automated payment
 Early deliveries
 Supplier strike
 Smooth approvals

What is the typical sequence of the Procure-to-Pay cycle?

 PO Creation → Approval → Delivery → Invoice → Payment
 Delivery → PO Creation → Invoice → Approval → Payment
 Approval → PO Creation → Invoice → Delivery → Payment
 Invoice → PO Creation → Delivery → Approval → Payment

What role does the Kraljic Matrix play in procurement strategy?

 It classifies suppliers based on risk and impact
 It defines employee roles
 It schedules deliveries
 It determines company profit

Why is cross-functional collaboration important in reducing P2P cycle times?

 To hire more suppliers
 To align stakeholders and reduce delays
 To increase paperwork
 To increase approvals

What topic is best covered after this simulation on P2P Cycle?

 Logistics planning
 Basic Accounting
 Marketing strategies
 Supplier Relationship Management and Digital Procurement Tools

Which KPI measures the time taken from PO creation to invoice payment?

 Invoice cycle time
 Overall P2P cycle time
 Approval time
 Purchase order lead time

What is the purpose of the leaderboard in this simulation?

 To display sponsors
 To manage lunch breaks
 To track team performance on KPIs
 To show attendance

Which of the following is a common bottleneck in the P2P cycle?

 Excess inventory
 Too many suppliers
 Late payment discounts
 Approval delays

In which industry is this simulation focused?

 Retail
 Process Industry (PVC, Energy, Fertilizer, Mining)
 Software Development
 FMCG

Which quadrant of the Kraljic Matrix represents items with high supply risk and high purchase impact?

 Strateghic
 Non-Critical
 Bottleneck
 Leverage

What is one expected outcome after this simulation on P2P Cycle?

 Improved understanding of P2P cycle management
 Increased supplier complaints
 Higher cycle times
 Unclear roles