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P2P CYCLE

In which industry is this simulation focused?

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

What is a strategic commodity according to Kraljic?

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

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

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

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

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

What does a bottleneck commodity mean in Kraljic Matrix?

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

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

 Too many suppliers
 Approval delays
 Excess inventory
 Late payment discounts

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

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

What is the purpose of the leaderboard in this simulation?

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

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

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

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

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

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

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

Supplier lead time affects which part of the P2P cycle?

 PO creation
 Invoice processing
 Delivery time
 Payment release

What should participants bring for this simulation?

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

What role does the Kraljic Matrix play in procurement strategy?

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

What is the typical impact of negotiating better supplier terms?

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

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

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

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

 Leverage
 Non-Critical
 Strateghic
 Bottleneck

Which event can unexpectedly increase P2P cycle times?

 Smooth approvals
 Early deliveries
 Supplier strike
 Automated payment

What can help reduce approval delays?

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

Invoice processing time can be shortened by:

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