EC S6 After Quiz Flashcards
Purchasing, Logistics, and Support Activities: Explain:
- Purchasing activities
- Procurement
- Supply management
- Sourcing
- E-Procurement or E-Sourcing
¨Purchasing activities
Include identifying vendors, evaluating vendors, selecting specific products, placing orders
¨Procurement
Includes all purchasing activities, plus monitoring of all elements of purchase transactions
¨Supply management
Term used to describe procurement activities
¨Sourcing
Procurement activity devoted to identifying suppliers and determining their qualifications
¨E-procurement or e-sourcing
Use of Internet technologies in procurement and sourcing activities
Look at the picture of a typical purchasing process and tell about the disadvantages.
Disadvantages:
Very complex and it takes time.
Many steps included
Requires a number of human resource
Direct vs. Indirect Materials Purchasing:
Explain the terms:
- Direct Materials
- Replishment purchasing
- Indirect materials
-
Direct Materials
Materials that become part of the finished product in a manufacturing process -
Replishment purchasing
The company negotiates long-term contracts for most of the materials that it will need - **Indirect materials **
Other materials that the company purchases, including factory supplies
Logistics Activities:
Explain the terms:
- Including of Logistics Activities
- Objectives of logistics
- Logistics management
Include managing
¤Inbound movements of materials and supplies
¤Outbound movements of finished goods and services
Objective of logistics
¤To provide the right goods in the right quantities in the right place at the right time
Logistics management
¤Important support activity for both sales and purchasing activities
Support Activities:
Explain:
- Support Activites (reminding of the value chain analysis)
- Knowledge Management
Support activities
Include categories of finance and administration, human resources, and technology development
Knowledge management
Intentional collection, classification, and dissemination of information about
A company, its products, and its processes
Explain what EDI stands for and give a small definition:
EDI = Electronic Data Interchange
**¨Computer-to-computer transfer of business information between two businesses **
- ¤Firms exchange data in specific standard formats
- ¤Business information exchanged is often transaction data
- ¤An adaptation of EDI or based on EDI principles
History of Business Information Interchange Efforts:
What happened in dates 1950s, 1968 and what is the meaning of TDCC?
¨1950s
¤Companies began to use computers to store and process internal transaction records
¨In 1968
¤Number of freight and shipping companies formed the Transportation Data Coordinating Committee (TDCC)
¨TDCC
¤Created a standardized information set
Emergence of Broader EDI Standards
Explain the ANSI and its Definition:
American National Standards Institute (ANSI)
- Has been coordinating body for standards in the United States since 1918
- Does not set standards itself
- Has created a set of procedures for the development of national standards
- Accredits committees that follow set procedures
Explain the term
¨Accredited Standards Committee X12 (ASC X12) and Transaction sets.
¨Accredited Standards Committee X12 (ASC X12)
- Chartered by ANSI to develop uniform EDI standards
- Include information systems professionals from over 800 businesses and other organizations
¨Transaction sets
- Names of formats for specific business data interchanges
What happened back in 1987 with UN and EDI and also what happened in 2000 with ASC X12 organization and UN/EDIFACT?
- In 1987
- ¤United Nations published first standards under the title EDI for Administration, Commerce, and Transport (EDIFACT, or UN/EDIFACT)
- ¨Late 2000
- ASC X12 organization and UN/EDIFACT group agreed to develop one common set of international standards
Compare the Paper based purchasing Process with the EDI Purchasing Process. What do you think are the differences or advantages of the EDI purchasing process?
Differences:
- EDI has less processes and steps
- Less Human Resource is required
- The Post Office are redundant with EDI
- EDI operates on a much faster level.
- Connected with the bank electronically
Explain the VAN and give some statements. Also use the term Direct connection EDI and Indirect Connection EDI.
VAN = Value added Network
¨Direct connection EDI
- Requires each business in the network to operate its own on-site EDI translator computer
- EDI translator computers are connected directly to each other using
- Modems and dial-up telephone lines or dedicated leased lines
Indirect connection EDI
- To send an EDI transaction set to a trading partner:
- VAN customer connects to the VAN then forwards EDI formatted message to VAN
- VAN logs the message and delivers it to trading partner’s mailbox
- Trading partner then dials in to the VAN and retrieves its EDI-formatted messages
Please enumerate and give examples of the Advantages of using a VAN:
Users need to support only the VAN’s one communications protocol
The VAN
- Records message activity in an audit log
- Can provide translation between different transaction sets used by trading partners
- Can perform automatic compliance checking
Enumerate or give examples of the Disadvantages of using a VAN:
¨Cost
Most VANs require:
- An enrollment fee, a monthly maintenance fee, and a transaction fee
¨Using VANs can become cumbersome and expensive for companies that
- Want to do business with a number of trading partners, each using different VANs
EDI on the Internet:
**What were roadblocks conducting EDI over the Internet? **
What does Nonrepudiation mean in this concern?
¨Initial roadblocks to conducting EDI over the Internet
- Concerns about security
- Internet’s inability to provide audit logs and third-party verification of message transmission and delivery
Nonrepudiation
- Ability to establish that a particular transaction actually occurred
Explain Industry Marketplaces, independent exchanges and Public market places:
Industry marketplaces
Focused on a single industry
Independent exchanges
Not controlled by a company
Public marketplaces
