Chpt 11 Flashcards
What is procurement?
The purchase of goods and services from suppliers
What are the 3 categories of goods and services?
- Direct (OEM original equipment manufacturer) - go into production of a product
- Indirect (MRO maintenance, repair, and operation) - support goods/operating inputs
- Services - support the supply chain
What is the just-in-time inventory system?
Aligns raw-material orders from suppliers directly with production schedules
What is on-demand (direct-response) delivery?
Requires suppliers to deliver goods when demanded by the customer
What is spend analysis?
A formal process usually incorporating software for analyzing spend data to lower procurement costs
What is a reverse auction?
A type of auction in which a company posts orders on the Internet for suppliers to bid on
What are logistics?
Transportation and distribution of goods and services
What is postponement?
A strategy that moves some manufacturing steps into the distribution centre
What is a warehouse management system?
An automated system that runs the day-to-day operations of a distribution centre
What is EDI or “Electronic Data Interchange”?
a system that allows businesses to electronically exchange standardized business documents like purchase orders, invoices, and shipping notices with their trading partners, automating communication and streamlining critical processes
What is the role of procurement in supply chain management?
Provides companies with resources from suppliers to create goods and services.
What is e-procurement?
(B2B) commerce allows buyers to purchase directly from suppliers through various online platforms.
What are the benefits of e-procurement?
lower transaction costs, lower prices for goods and services, reduced clerical costs, and faster ordering and delivery times.
What does distribution encompass?
All channels, processes, and functions that a product passes through on its way to the final customer.
What is the most important factor in transportation and distribution?
SPEED.
What are some recent trends in distribution management?
Increased reliance on the Internet, warehouse management systems, vendor-managed inventory, collaborative logistics, and distribution outsourcing.
What are the principal modes of transportation in Canada?
Railroads, air, truck, intermodal, water, and pipeline.
What are the advantages of railroads in transportation?
Low-value, high-density, bulk products over long distances.
What are the advantages of trucks in transportation?
Flexible point-to-point service and are generally more reliable and less damage-prone than railroads.
What is the fastest mode of freight transportation?
Air freight
What is water transport used for?
Slow but low-cost form of shipping, primarily used for heavy, bulk items such as raw materials.
What factors have created a global marketplace?
Factors include fallen international trade barriers, new trade agreements, and technology advances enabling middle-tier companies to establish a global presence.
What are some obstacles to global supply chain management?
Ever-changing regulations, tariffs and duties, and limited shipping modes.
What is continuous replenishment?
Supplies orders in a short period of time according to a predetermined schedule.
What are core competencies for a company?
What a company does best.
What is cross-docking?
Cross-docking is a system where goods ‘cross’ from one loading dock to another in 48 hours or less.
What are e-marketplaces?
Websites for B2B companies and suppliers
What is intermodal transportation?
Intermodal transportation is the use of several modes of transportation to move shipments.
What is landed cost?
Landed cost is the total cost of producing, storing, and transporting a product to its destination.
What is logistics?
Transportation and distribution of goods and services.
What are tariffs?
Tariffs are taxes on IMPORTED goods.
What is vendor-managed inventory (VMI)?
Replenishment model where manufacturers generate orders instead of vendors/retailers (for vendors, using data of vendor’s supply)
What is a warehouse management system (WMS)?
Automated system that runs the day-to-day operations of a distribution center.
