Chapter 1.1 Flashcards
Describe the categories of spend that an organisation may purchase
Strategic
High level planning including setting direction and long term goals
Inventory
The stock of goods, materials or products
Expediting
The process involved in the progress of an order to ensure stock is received as quickly as possible
Specification
A detailed description of what is required
Economies of scale
The trend of cost per unit being reduced as output increases die to factors such as bargaining power, and the cost of tooling being shared amongst larger number of units
Operations expenditure
Coats associated with the running of an organisation, such as electricity, labour or waste collection
The five rights of procurement
The right quantity The right quality The right time The right place The right price
Stakeholder
Anyone with an interest or stake in the organisation or project
ISO 9000
A set of international quality management and quality assurance standards that help companies effectively document and maintain an efficient quality system.
They are not specified to any one industry and can be applied to organisations of any size
On cost
A cost in addition to the quoted price
Total cost of ownership
The total cost incurred by owning a product throughout its useful life, including acquisition, use, maintenance and disposal
Total cost of acquisition
The total cost incurred in acquiring a product from sourcing to receiving and installing
What 3 things does a contract need
Intention
Consideration
Agreement
Individual with capacity
A person who is legally able to enter to enter into a contract because of their appropriate age and state of mind
Corporate social responsibility
A business approach that contributes to sustainable development by delivering social, environmental and economic benefits for all stakeholders.
The CSR policy may cover fundraising for charity, ethical behaviour, social and environmental policies etc
