exam 3 Flashcards
1
Q
the process of obtaining goods or services to meet the needs of the organization
A
Acquistion
2
Q
the cost of keeping inventory on hand, including: the opportunity cost of invested funds; storage and handling costs, and taxes, insurance, shrinkage, damage and obsolescence. organizations usually state an item’s holding cost per time period as a percentage of the item’s value
A
Carrying Cost
3
Q
(1) an agreement with a supplier to stock goods at a customer’s location with the goods remaining the property of the supplier until used or sold; (2) a shipment that is handed over to a common carrier for transport and delivery
A
Consignment
4
Q
calculation used to determine profitability at a product level by looking at product variable costs in relationship to product revenue. also called contribution margin
A
Contribution to Profit
5
Q
an accounting classification that accumulates the monetary value of direct materials, direct labor and allocated overhead in products sold during a given time period. it is used to calculate earnings for the period, typically a year
A
Cost of Goods Sold (COGS)
6
Q
derived from or contingent upon the demand for another component or a finished product
A
Dependent Demand
7
Q
a practice that brings together one or more selected suppliers with a buyer’s product or service design team early in the product development process. the objective is to utilize the supplier’s expertise and experience in developing a product specification that is designed for effective and efficient product roll-out
A
Early Supplier Involvement (ESI)
8
Q
a measure of an organization’s earning power from ongoing operations, equal to earnings (revenue minus cost of sales, operating expenses and taxes) before deduction of interest payment and income taxes; also called operating profit
A
Earnings Before Interest and Taxes (EBIT)
9
Q
model that can be used to determine the quantity of an item to be ordered or manufactured that minimizes total acquisition and inventory carrying costs. although the EOQ concept can be used in a variety of applications, its most common use today is for independent demand items managed in an order-point inventory management system
A
Economic Order Quantity (EOQ)
10
Q
(1) charge payable in the short-term, including depreciation, that is not for items to be resold; (2) cost associated with running a business
A
Expense
11
Q
a material replenishment system in which the size of the order remain fixed, while the time interval between them changes, depending on how quickly the items are consumed
A
Fixed-Order Quantity (FOQ)
12
Q
containing little excess. a ___ organization is one where ___ thinking is applied to identify value-creating activities and eliminate all others which represent waste in systems, processes, procedures and practices
A
Lean
13
Q
demand not directly related to the demand for other items or end items produced by the organization
A
Independent Demand
14
Q
(1) as a business measure, the ratio of operating profit to revenue; (2) for individual products, the difference between cost and selling price of an item or service; (3) the minimum return below which products or activities are not profitable
A
Margin
15
Q
a guideline for decision making
A
Policy
16
Q
predetermined inventory level that triggers an order. this level provides adequate inventory to meet anticipated demand during the time it takes to receive the order
A
Reorder Point
17
Q
setting the long-term direction of an organization. to be successful, an organization must approach ___ on three levels: (1) corporate: decisions and plans that answer the questions of “what business are we in?” and “how will we allocate our resources among these businesses?”; (2) Unit: the decisions mold the plans of a particular business unit, as necessary to contribute to the corporate strategy; (3) Function: these plans concern the “how” of each functional area’s contribution to the business strategy and involve the allocation of internal resources
A
Strategic Planning
18
Q
inventory management system that holds a supplier responsible for ensuring that stock is maintained at appropriate levels in the purchaser’s facility and for replenishing items when these levels drop.
A
Supplier-Managed Inventory (SMI)
19
Q
something of economic value. a tangible ___, such as real estate, a building, equipment or cash. can be touched. an intangible ___, such as a brand, trademark, copyright or patent, cannot be touched
A
Asset
20
Q
the transfer by one contracting party (assignor) of his/her rights or obligations under a contract to another person (assignee). sometimes also referred to as delegation of duties
A
Assignment
21
Q
a contractual provision giving the parties the right to approve or disapprove any requested assignment
A
Assignment Consent
22
Q
a legal document, approved and issued by a judge, formalizing an agreement between two parties
A
Consent Decree
23
Q
the ratio of current assets to current liabilities
A
Current Ratio
24
Q
the amount of money owed to creditors
A
Debt
25
total liabilities divided by total assets. when calculating this ratio, it is conventional to consider both current and non-current debt and assets. the debt-to-asset ratio shows the proportion of an organization's assets which are financed through debt. if the ratio is less than one, most of the organization's assets are financed through equity. if the ratio is greater than one, most of the organization's assets are financed through debt. organizations with high debt-to-asset ratios are said to be "highly leveraged" and could be in danger if creditors start to demand repayment of debt
Debt-to-Assets Ratio
26
disposal or reduction of an asset or investment by sale, liquidation or other means for either financial or social goals
Divestiture
27
an appreciating or income producing asset; the accumulation of some kind of asset in hope of getting a future return from it
Economies of Scale
28
business strategy that adds new entities with similar or competitive products or services, often to gain economies of scale and/or scope, enter a new geographic marketplace, or reduce market competition and integrate it into the existing company or as a subsidiary
Horizontal Integration
29
any obligation incurred as a result of law, rule or agreement; being legally obliged and responsible; a debt or an obligation to another party
Liability
30
a person or organization that makes goods by hand or by machinery often on a large scale and with divisions of labor
Manufacturer
31
any various methods of combining two or more business concern, such as absorption by a corporation of one or more others
Merger
32
a close relationship between a buyer and seller in order to attain some advantages from each other in a positive way. a ___ in this context does not imply a legal relationship. Buyer-seller ___s may be of operational importance, such as a long-term, sing-source with an office supplier or of strategic importance, such as a long-term, single-source relationship with a supplier of a good or service of strategic importance
Partnership
33
information that has an inherent value to an organization and its business interests such as trade secrets, customer lists, marketing plans and so on; often protected by means of NDA
Proprietary Information
34
commercial information, usually a plan, process or mechanism, known only to the owner and a limited number of others to whom it is necessary to confide it; commonly protected by use of a confidentiality agreement
Trade Secret
35
insightful initiatives undertaken to enhance the worth, relevance or importance of a product, service or system
Value Creation
36
an organization that extensively outsources most of its activities and manages the relationships through key outsourced providers
Virtual Corporation
37
US agency created in 1914 that has the power to determine the meaning of restraint of trade. the ___ is charged with uncovering unfair methods of competition and unfair or deceptive practices in commerce. all proposed corporate mergers must undergo the __ test for unfair competition
Federal Trade Commission (FTC)
38
right granted to an agent to act (engage in legally binding transactions) on behalf of a principal
Authority
39
the amount of overhead
Burden
40
the process of overseeing and maximizing the financial and operational value of a group of related commodities, products or services by identifying and monitoring total spend and consumption, keeping abreast of market shifts, new alternatives or inventions, forecasting market supply and demand, and continuously evaluating supplier performance in order to drive down cost, improve supplier performance, and respond to changing business requirements and/or enhance stakeholder satisfaction
Category Management
41
the management of various facets of a contract to ensure that the contractor's total performance is in accordance with the contractual commitments and that obligations to the purchaser are fulfilled
Contract Administration
42
the commercial activity of providing funds and capital; the branch of economics that studies the management of money and other assets; to obtain and provide money for; to sell or provide on credit; the management of money and credit and banking and investments
Finance
43
a newly introduced idea, system of thinking, method, product or process with attributes that do not currently exist
Innovation
44
an individual or organizational unit with whom purchasing has a working relationship and on whose behalf it obtains specified goods or services from external sources. as opposed to the more traditional term "user", the term "___" reflects an attitude of mutual respect, open and frequent exchange of questions, ideas and suggestions, and close cooperation in bringing value to the organization. may also be referred to as an internal business partner to reflect the equality of the supply management process with other core business processes and process owners
Internal Customer
45
a statement about the nature and purpose of an organization. ___s are used to focus energies and decision-making within the organization, as well as to indicate to customers and suppliers those values that are important to the organization
Mission Statement
46
a comparison of actual performance to a planned level or standard to determine the degree of achievement as well as opportunities for improvement. may be applied to individuals, departments, processes or organizations such as suppliers
Performance Evaluation
47
a management technique for evaluating the performance of a particular function, person or organization such as a supplier. for suppliers, key performance metrics may include on-time delivery, flexibility, quality, basic competitive pricing and after-sales services
Performance Measurement
48
a series of integrated processes in new ___ chronicling steps from idea conception to commercialization
Product Development
49
a framework of measurable corporate policies and procedures and resulting behavior designed to benefit the workplace and, by extension, the individual, the organization and the community as they relate to diversity and inclusiveness of the supply base, workforce, environment, ethics, financial responsibility, human rights, health and safety, and sustainability
Social Responsibility
50
a description of the technical requirements for a material, product, or service. a ___ for service to be performed is called a statement of work
Specification
51
a performance measurement and management document that records the ratings from a performance evaluation process
Scorecard
52
the process of agreeing on a common specification. this process can take place at different levels: (1) across an organization; (2) throughout an industry; (3) across a nation; (4) around the world
Standardization
53
action of one party pursuant to specific contract language to end a contract for some reason other than breach by the other party
Termination
54
a systematic and objective evaluation of the value of a good or service, focusing on an analysis of function relative to the cost of manufacturing or providing the item or service. ___ provides insight into the inherent worth of the final good or service, possibly altering specification and quality requirements that could reduce costs without impairing functional suitability
Value Analysis
55
the process of gathering information on customers, competitors, suppliers, economics and other areas of the market, and then analyzing and formatting the data to assist in decision-making
Market Research
56
equipment used by an organization for its production potential that costs more than a predetermined threshold value and whose costs will be depreciated over time
Captial Equipment
57
building, or forming, an agreement regarding decisions through informed discussion, negotiation and participation
Consensus building
58
groups of individuals from various organizational functions who are brought together to achieve clear, worthwhile and compelling goals that could not be reached without a team. teaming leverages organizational resources while utilizing the expertise of team members. purchasers typically participate on teams dealing with sourcing, commodities, quality and new product/service development
Cross-Functional Teams
59
the process of minimizing the total time required for a designated process; for example, the time required for production and delivery. efforts to shorten cycle time often focus on reducing wait time and/or eliminating unnecessary steps
Cycle Time Reduction
60
a decision-making process in which group members do not critically evaluate each other's ideas and proposals. the result is a poor decision reached through a faulty consensus-building process
Groupthink
61
the process and the result of gathering and analyzing information about the aggregate forces (including economics) at work in trade and commerce in a specific service or commodity
Market Intelligence
62
the process of coordinating the organization, planning, scheduling, controlling, monitoring and evaluating of activities so that the objectives of a project are met
Project Management
63
Operational or other improvements to increase the difference between revenue and cost
Revenue Enhancement
64
a group of individuals from several departments or functions (such as purchasing, operations, engineering and finance) who pool their expertise to make sourcing analyses and purchasing decisions jointly
Sourcing Team
65
deciding in advance when work will be performed, where it will be performed, what kind of resources will be used and how much they will be used. the ___ process is usually connected with ___ systems, policies, techniques and/or devices
Scheduling
66
a systematic effort to create and maintain a network of competent suppliers, and to improve various supplier capabilities that are necessary for the purchasing organization to meet its competitive challenges
Supplier Development
67
the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. the development and integration of people and technological resources are critical to successful supply chain integration
Supply Chain Management
68
the phenomenon that occurs when multiple entities are able to achieve more than the sum of all individual efforts
Synergy
69
an number of persons brought together in work or activity
Team
70
made popular by Peter Senge, the idea of a company's support of continuous learning over time
Learning Organization
71
an organization's observance of laws, regulations and specifications applicable to the business
Regulatory Compliance
72
a key performance indicator representing a supplier's level of performance against the buyer's definition of ___
Responsiveness
73
the act, process or power of producing an effect without apparent exertion of tangible force or direct exercise of command
Influence
74
a pictorial representation of a car dashboard that includes a small, defined set of key metrics. the position on the dashboard indicates the degree of success in attaining the desired performance target. typically, dashboards are prominently displayed frequently updated and use to provide a quick evaluation of a project or process status
Dashboard
75
describes the different methods that will be used to communicate the strategic and operating supply management plans to everyone in the organization
Communication Plan
76
includes items such as deployment schedule, required resources, personnel and training requirements, and a budget
Rollout Plan
77
total assets minus total liabilities. ___ is an important determinant of the value of an organization, considering it is comprised primarily of all the money that has been invested since its inception. as well as the retained earnings for the duration of its operation/ ___ can be used to determine creditworthiness because it gives a snapshot of the organization's investment history. also called owner's equity or shareholder's equity or net assets
Net Worth
78
that which one is required to do as part of contract performance. contracts and purchase orders represent monetary ___s of a purchasing organization to a supplier
Obligation
79
a monopoly created by law that gives the ___ holder the sole right to make, use and/or sell the ___ed articles and to prevent others from doing so without the holder's permission (license) for a set amount of time
Patent
80
the personal or organizational responsibility and authority to provide direction, answers and insight to all interested parties on a topic or within a given area
Accountability
81
an individual whose duties combine the production planning and procurement functions into a single position, who is in charge of a specific line of inventory. the concept is based on the idea that the same person should have the authority and responsibility for both the production planning and the purchasing decisions for specified items
Buyer/Planner
82
a group of individuals from several departments or functions (such as purchasing, operations, engineering and finance) who pool their expertise to make sourcing analyses and purchasing decisions jointly
Buying Team
83
goods or services with similar characteristics or attributes that are grouped together for planning and management purposes and are bought and sold in any trading arena
Category
84
one type of hybrid supply structure in which strategic direction is centralized and execution is decentralized
Center-Led Purchasing
85
an organizational policy and structure in which the authority and responsibility for most supply related functions and decisions are assigned to a central organization. this term refers to the locus of decision-making, not necessarily that purchasing staff are all physically located in one place. there are numerous advantages including: the ease of standardizing products; reduction of administrative duplication; increase leverage from larger volume; limited interdepartmental competition in times of short supply; more control over purchase commitments; greater administrative efficiency for suppliers; and the development of specialized expertise in purchasing activities
Centralized Purchasing
86
the process of managing a commodity including the identification and monitoring of total spend and market forces by commodity to control elements such as increasing leverage, managing cost, increasing quality, ensuring continuity of supply and/or focusing on the supplier relationship
Commodity Management
87
an organizational structure in which decision-making authority is dispersed close to the point of service or action rather than being concentrated in a central group or location
Decentralized
88
an organizational policy and structure in which the authority and responsibility for most supply related functions and decisions are assigned to individual functions or managers. there is no central locus for purchasing decision-making and no specialized buying expertise
Decentralized Purchasing
89
a process in which a purchaser pre-qualifies multiple suppliers and invites them to participate in a fixed-duration Web-based bidding or sourcing event
Electronic Auction
90
purchasing authority and responsibility is shared between a central supply organization and business units, divisions, or operating plants.
Hybrid Purchasing Organization
91
a management-level process to develop an operating plan based on input from sales (sales plan or forecast), manufacturing (capacity), materials management (inventory levels and material availability), finance and other stakeholders. demand is compared to production capability, and a strategy is developed including a production plan, materials plan, budget and workforce requirements. a primary goal is establishment of production rates that satisfy demand (by maintaining, raising or lowering inventory or backlog) while keeping the workforce relatively stable
Production Planning
92
a section of an organization that has authority to affect both revenue and costs incurred by and allocated to that section. performance is measured by the profit generated
Profit Center
93
a legally binding document prepared by a purchaser to describe the terms and conditions of a purchase. in contracting process the ___ may function as an offer, an acceptance, a confirmation of an oral agreement or a trigger for periodic performance (release) under an established contract
Purchase Order (PO)
94
term used to refer to the formal structure and reporting relationships of the members of a purchasing team
Purchasing Organization
95
supply is the amount of goods or services available at a given price at any time. demand is how many customers or consumers desire the goods or services that are in supply
Supply and Demand
96
the process of collecting and analyzing job-related information. it is the cornerstone of all human resource management processes. job-related data allow the organization to make hiring decisions, determine types of training employees should receive, identify performance-related successes and problems, and make compensation decisions. the job analysis is composed of the job description, job specification, and job evaluation
Job Analysis
97
this is composed of all job-related items, and states the essential functions of a job. this should be written by direct examination of the job itself
Job Description
98
defining knowledge requirements as well as disseminating information to ensure that it is effectively applied in key impacted business sectors
Stakeholders Requirements
99
the way interrelated people, processes, and activities are arranged. organizatinoal structure reflects decisions about who should do which tasks, who reports to whom, and how decisions are made. structure addresses the complexity, formalization, and centralization between and among the interrelated people, processes, and activities
Organizational Structure
100
the indication of an offeree to be bound by the terms of an offer; may be by communication or behavior
Acceptance
101
a performance management system developed by Kaplan and Norton which links performance measures to each other and to the organizations vision and strategy. the key performance categories are financial performance, customer knowledge, internal business, and learning and growth
Balanced Scorecard
102
a quantitative expression of planned costs, schedule and technical requirements for a defined project; a known value or quantity with which an unknown is compared when measured or assessed; information gathered at the beginning of a study from which variations found in the study
Baseline
103
controls that are put in place before activities are executed. they include budget, plans, forecasts and procedures
Before the fact controls
104
an ongoing and comprehensive process for ensuring the continuity or uninterrupted provision of operations and service, including risk or contingency planning, disaster planning, disaster recovery, business recovery, business resumption and contingency plan
Business Continuity Planning
105
preparation to deal with unforeseen events, such as supply disruptions from single sources or natural disasters
Contingency Planning
106
graphs or diagrams used in statistical process control (SPC) to record, measure, analyze variations in processes to determine whether or not outside influences are causing a process to go "out of control". the objective is to identify and correct such influences to keep the process "in control"
Control Chart
107
in numerical data sets, the difference or distance of individual observations or data value from the center point (often the mean) of the set distribution
Deviation
108
developing a contingent plans in the event of a man-made or naturally disruptive event such as a strike, earthquake, hurricane or fire
Disaster Planning
109
methods used to monitor and manage quality during the production process
During the Fact Controls
110
measurements considered critical to the performance of a business or process, usually calculated and reviewed on a regular basis
Key Performance Indicator (KPI)
111
a measure of economic activity that tends to change after the state of the general economy has changed, for example unemployment rate
Lagging Indicator
112
that percentage of total market demand which an organization or product fulfills
Market Share
113
a technique utilizing the application of statistical control charts in measuring and analyzing the variation in processing operations. the methodology monitors the process to determine whether outside influences are causing the process to go out of control
Statistical Process Control (SPC)
114
application of a set of statistical techniques to control quality. ___ includes both statistical process control and acceptance sampling
Statistical Quality Control
115
a measure of the velocity of total inventory movement through the organization, found by dividing annual sales (at cost) by the average aggregate inventory value maintained during the year. the higher the ___, generally, the more favorable the measure
Turnover
116
all processes and activities that transform raw materials into an end product or service for the customer
Value Stream
117
creating an innovative and effective function that retains the best people within the business through succession planning, upskilling their abilities, and creating a progressive and evolving environment
Talent Management
118
an improvement process used by an organization to define requirements, map current processes, identify gaps between requirements and current processes, and develop and implement solutions to fill those gaps
Gap Analysis
119
orientation method where a new employee is rotated through a series of brief assignments, both within purchasing and in a number of other functions, to gain a broad understanding of the organization as a whole
Functional Rotation
120
the process in which an experienced collague is assigned to an inexperienced individual and assists in a training or general support role as part of employee development.
Mentoring
121
a group of physically connected computers (or work stations) that are attached to a file server. it allows users to share software and some hardware, thus, reducing costs while providing the user with more applications
Network
122
a process in which a purchaser pre-qualifies multiple suppliers and invite them to participate in a fixed-duration web-based bidding or sourcing event
Online Auction
123
a ratio created by dividing EBIT (earnings before interest and tax) by total net assets that is used to determine how effectively assets are utilized to generate income within the organization
Return on Total Assets ( ROTA)
124
a broad category of applications and technologies for gathering, providing access to and analyzing data for the purpose of helping enterprise users make better business decisions
Business Intelligence
125
an organization's reporting and decision-making structure
Chain of Command
126
making changes in a planned or systematic fashion through the use of methods, models and practices common to the multi-disciplinary body of knowledge surrounding the task of managing planned or unplanned change
Change Management
127
data about the business environment, such as the markets, the industry, competitors and/or customers, that an organization collects, reviews and uses to enable it to make sound decisions regarding current and future plans and operations. For example, an organization may use ____ to compare itself to other organizations, to identify risk and opportunities and/or test plans against market response in order to gain a competitive edge
Competitive Intelligence
128
any type of transaction that requires, as a condition of the original sale, that goods be bought either as a trade-balancing mechanism or as full or partial payment for the goods sold. some form of ___ frequently is used in international business
Countertrade
129
the time required to complete a process, such as replenishing inventory
Cycle Time
130
involves assigning tasks to subordinates, granting authority to them, and them responsible for results
Delegation of Authority
131
an entire business organization, from front-line employees to top management, and all functions in-between
Enterprise
132
an authorization given to a supplier to ship a specified quantity of material against an established contract
Release
133
the physical relationship between an organization's output and input
Productivity
134
the extent to which people interact with and influence others outside their span of control both within and outside the organization. mechanisms such as dual reporting and matrix structures serve to encourage an increased ___
Span of Influence
135
the process where one or more successors are identified for critical supply management positions
Succession Planning
136
training employees to be able to perform different types of work in the supply management function, such as training a commodity manager to understand the process of acquiring capital equipment in addition to the regular commodity assignment
Cross-Training
137
projects or tasks that are above and beyond an employees current knowledge, skill, or ability level
Stretch Assignments
138
formal process in which an experienced college is assigned to an inexperienced individual, and assists in a training or general support role as part of employee development
Mentoring
139
businesses pair newer employees who have knowledge of newer trends and technologies, such as social media and the perspectives of Gen Y, millennials, Gen Z, with more senior employees
Reverse Mentoring
140
the ability of the individual to increase skills and knowledge of current and future job responsibilities to attain career objectives through both training and work assignments
Professional Development
141
provide key tasks to subordinates allowing the opportunity to make and execute decisions that are important to the success of the organization and critical to developing talent depth in the managerial ranks
Delegation of Authority
142
designed to give the employee experience in as many of the areas of supply management for which the employee is being prepared for should the need for succession arise
Job Rotation
143
the ability to respond rapidly to changes in the physical or business environment
Agility
144
the use of business data to discover statistics, metrics, patterns and measures that might otherwise not be found or understood
Analytics
145
massive data sets that often include both structured and unstructured data that requires special processing methods for extraction of information
Big Data
146
a broad term applying to the use of IT resources that are external to the business for purposes of storage and computing
Cloud
147
in a business context, usually refers to something that is easily known or understood at an interpersonal or market level
Transparency
148
a general term for computing using external resources, software and information via outside computers rather than in-house assets. cloud services are metered and paid for by use
Cloud Computing
149
processes that are used to maximize value by ensuring that a contract is initiated, utilized, fulfilled, modified and completed in a systemic fashion that ensures stakeholder value is maximized and risk is minimized. may also be called contract administration or contract life-cycle management
Contract Management
150
a pictorial representation of a car ____ that includes a small, defined set of key metrics. the position on the ___ indicates the degree of success in attaining the desired performance target. typically, ___s are prominently displayed, frequently updated and used to provide a quick evaluation of a project or process status
Dashboard
151
the concept of organizations intensively searching increasing large and complex amounts of data to find trends, identify customer and supplier behaviors, manage risk, enhance market intelligence, and so on. the data may come from one proprietary source or may come from aggregating multiple data capture points
Data Mining
152
the computer-to-computer exchange of business information in a standard format. transaction documents, such as purchase orders, invoices and shipping notices, are transmitted electronically and entered directly into a supplier's (or purchaser's) computer or into a third-party network for processing
Electronic Data Interchange (EDI)
153
a variable that affects a dependent variable and is assumed not to be affected by the other variables in the analysis
Independent Variable
154
a method for the effective planning of all resources used in a manufacturing organization. ideally, it addresses operational planning in units and financial planning in dollars, and has a simulation capacity to answer "what if" questions. it is comprised of a variety of functions, each linked together; business planning, sales and operations planning, production planning, master production scheduling, material requirements planning, capacity requirements planning and the execution support systems for capacity and materials. ____ is a direct outgrowth and extension of closed-loop material requirements planning
Manufacturing Resource Planning (MRP II)
155
a standalone portion of an enterprise system that performs specific functions such as payroll, e-mail or warehouse management. these ___s can be linked together with an integrated system like ERP
Module
156
(1) a key site on the internet that numerous people visit; (2) a communication entrance or area for an organization
Portal
157
an analysis of expected demand, the supply market, specific suppliers and the items in question, as well as development of a budget. these activities culminate in the development of purchasing plan objectives and specific purchasing strategies. subsequent purchasing actions during the year are based on this plan. many organizations develop an annual ____ for each major category of materials and services purchased
Purchase Plan
158
an organization that provides software applications over the internet for use by its customers for a fee. ___ has become the industry-preferred term, generally replacing the earlier term application service provider (ASP)
Software as a Service (SaaS)
159
analysis of the historical spending patterns in an organization, usually by commodity or category. this analysis provides information about the types of items purchased and their cumulative dollar value, which becomes the substance for future strategic and operational purchase planning
Spend Analysis
160
the ability to expand or decrease/contract based on demand
Scalability
161
media used for both the long- and short-term ___ of data including mass ___ devices, tape and discs
Storage
162
the act of following the path along which something moves, such as a shipment form its departure to its destination. ___ capability is important for all modes of transportation
Tracking
163
a subset of ANSI X.12 EDI standards for warehousing and distribution
Warehouse Information Network Standards (WINS)
164
any name, term, symbol or design that an organization uses to differentiate its offering from those of others
Brand
165
a form of intellectual property in which legal protection is provided by a country or governmental entity granting the authors and creators or original literary, dramatic, musical, artistic and other intellectual property, published or unpublished, the exclusive right to publish, reproduce, display, sell, perform, transmit or prepare derivative works form the original work
Copyright
166
a variety of technologies and business processes designed to prevent unauthorized access to technology systems and networks. also called computer or IT security
Cybersecurity
167
a country with a relatively low standard of living, undeveloped industrial base and moderate to low human development index (HDI). the term has tended to edge out earlier ones, including the Cold Ware- defined "third world countries
Developing Countries
168
an agency of the US Department of Commerce that grants patents for invention protection and for trademark registration
US Patent and Trademark Office (USPTO)
169
deceit, trickery, breach of confidence or other illegal act used to gain unfair or dishonest advantage. may be the basis for a tort (personal injury) lawsuit
Fraud
170
unauthorized use or encroachment upon personal property or rights. the term is often used in association with intellectual property rights, such as patent ___
Infringement
171
an agreement between a company, or person, in which the insured makes payments to the insuring company, usually based on terms of an ___ policy, covering a specified period of time. the insuring company promises to pay money or other compensation to the insured for a loss covered by the ___ policy. often used to reduce business risk, many types of ___ are available
Insurance
172
Various types of intangible personal property that have an inherent commercial value and are protected by the government in different ways. they include copyrights, patents and trademarks
Intellectual Property (IP)
173
Permission granted by one party (licensor) allowing another (___e) to use property or exercise rights of the licensor; often used in connection with intellectual property rights
License
174
a market characterized by having only one seller. illegal in the US under antitrust laws
Monopoly
175
(1) the probability that a product will perform as specified (under normal conditions) without failure for a specified period of time; (2) a requirement in a specification that is part of the design criteria defining dependability
Reliability
176
Identifying label, symbol or word (s) for exclusive use with a particular product (trademark) or service. marks may be protected by registration at the US federal or state level or by common law
Service Mark
177
a process of evaluating the likelihood and impact of various uncertainties an entity faces
Risk Assessment
178
responsibility for damage or other casualty. commonly used in association with goods ___ transfers from the seller to the buyer in accordance with the delivery term used or other provisions of the contract
Risk of Loss
179
____ may include infrastructure security, risk to systems, process disruptions and data-access disruptions. risk to data include theft, alteration, destruction and loss of availability
Technical Risk
180
Wrong committed under civil law (rather than criminal) other than breach of contract
Tort
181
a provision of the US Equal Opportunity Act of 1972 that requires organizations to take action to move toward achieving a workforce that accurately reflects the composition of the local labor pool
Affirmative Action
182
a non profit, non partisan, educational membership organization which fosters the study of international law and promotes the establishment and maintenance of international relations on the basis of law and justice
American Society of International Law
183
US federal law adopted in 2002 in an attempt to restore public confidence in corporate governance; regulates the accounting profession and imposes extensive reporting requirements on all publicly-traded corporations in the US. the law requires internal financial controls to provide assurance of the reliability of financial reporting and preparation of financial statements
Sarbanes-Oxley Act (SOX)
184
elapsed time from placement to receipt of order
Delivery Cycle
185
the need for a specific item in a specific quantity
Demand
186
the proactive compilation of requirements information regarding demand and the firms capabilities from the supply side; (2) the development of a consensus regarding the ability to match the requirements and capabilities; (3) the agreement upon a synthesized plan that can most effectively meet the customer requirements within the constraints imposed by supply chain capabilities
Demand Management
187
Using two suppliers for the same item
Dual Sourcing
188
an entity established to provide the management of both inbound and outbound materials, parts, supplies, and finished goods for other organizations
Logistics Service Provider (LSP)
189
a statistical term referring to the likelihood of occurrence of an event, action or item
Probability
190
the process of identifying elements or factors, and their probability of occurrence, that could lead to injury, damage, loss or failure
Risk Analysis
191
the process of anticipating risk, determining its root causes, and identifying and taking the necessary actions to eliminate the risk
Risk Avoidance
192
the ability of an organization to survive the losses associated with a particular risk; how much risk an organization is willing to accept
Risk Tolerance
193
breach of contract occurring prior to actual time for contract performance, usually by means of repudiation
Anticipatory Breach
194
a failure to perform any obligations included in contract terms. Failure of material or product to meet quality or other specification warranted by the supplier
Breach
195
failure of mateiral or product to meet quality or other specification warranted by the supplier
Breach of Warranty
196
action of one party to end a contract due to breach by the other party. the right to cancel may be provided by law or in specific contract language
Cancellation
197
the right asserted by a plaintiff to payment or an equitable remedy, such as the specific performance of a contract
Claim
198
Financial remedy award to a plaintiff to compensate it for actual loss, injury or damage
Compensatory Damages
199
Named port of destination.
An incoterms rule under which goods are considered to be "delivered" (and buyer assumes risk of loss) when they pass the ship's rail in the port of shipment. the seller is responsible for clearing the goods for export and for ___ to bring the goods to the destination port this term can onyl be used for waterway transportation.
Cost and Freight (CFR)
200
compensation for loss or injury suffered by one party as a result of another party's actions or inactions. in breach of contract situations only compensatory, not punitive or exemplary, ___ are generally allowed
Damages
201
one accused of wrong-doing in a civil lawsuit (seeking damages or other remedy) or criminal action (seeking criminal sanctions)
Defendant
202
damages awarded when defendant's wrongdoing was deliberate or intentional to make an example of defendant and thus serve as deterrence
Exemplart Damages
203
is a set of related records. for example, a supplier ___ would contain records with information on each supplier
File
204
a sum agreed upon during the formation of a contract which will be paid by the breaching party in the event of a defined breach of contract
Liquidated Damages
205
one who initiates a civil lawsuit seeking damages or other remedy for alleged wrongdoing by a defendant
Plaintiff
206
that which relieves or corrects a legal wrong. in contract actions, available ___s are money damages or an order of the court for specific performance
Remedy
207
Damages awarded when defendant's wrongdoing was deliberate or intentional to serve as punishment and deterrence; not typically allowed in contract disputes
Punitive Damages
208
special remedy for breach of contract available to a purchaser where a court orders the seller to perform the contract as agreed rather than awarding money damages
Specific Performance
209
the process of gathering the requirements and ideas of those who will be impacted by a certain decision or organizational change, prior to making said decision or change
Stakeholder Engagement
210
a legally enforceable promise or representation as to quality or performance of goods or services made by a seller
Warranty
211
the legal relationship that exists between two parties by which one (the agent) is authorized to perform or transact specified business activities for the other (the principal)
Agency
212
a forecasting tool composed of autoregressive and moving-average concepts used for understanding and predicting values in time series data
Autoregressive Moving Average (ARMA)
213
the use of computers in interactive engineering drawing and storage of designs. programs complete the layout, geometric transformations, projections, rotations, magnifications and interval (cross-section) views of a part and its relationship with other parts
Computer-Aided Design (CAD)
214
an annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the consumer price index. the consumer price index is used rather than the producer price index because the purpose is to offset inflation as experienced by the consumer, not producer
Cost-of-Living Adjustment (COLA)
215
A collection of data received from various transaction systems, which are accessible to many people at varying levels within an enterprise
Data Warehouse
216
a collection of data in an organized, accessible form
Database
217
a software system that creates, accesses and controls a database. the interface between the programs and users needing to access the data
Database Management System (DBMS)
218
Process provided for in civil lawsuits that allows the litigants to learn as much as possible about the facts of the case prior to trial
Discovery
219
The act of moving goods out of one's internal organization to another organization due to loss of value, obsolescence, excess inventory or product change
Disposition
220
electronic discovery, or ___, refers to discovery in civil litigation that deals with information in electronic form such as e-mails, CAD/CAM files, Microsoft, accounting databases, websites and any other electronically stored information that could be relevant evidence in a lawsuit
E-Discovery
221
a set of processes or rules designed to optimize desired results and limit (optimally eliminate) undesired results, typically embedded within management practices
Governance
222
the power of a court to hear a particular dispute and/or to exercise control over particular parties to a dispute
Jurisdiction
223
legal action in which one party initiates suit against the other party in a court of law
Litigation
224
data that describes data
Metadata
225
alleviation, suppression, mitigation or termination
Abatement
226
an objective, systematic and periodic process for identifying and documenting environmental compliance and associated management systems, including gaps and potential remediation
Environmental Audit
227
a routine activity to monitor the status of a purchase order to ensure that specified service or product delivery schedules are met
Follow-Up
228
materials determined to be a risk to health, safety and property. the term includes such items as explosives, flammables, poisons, corrosives and radioactive materials. these materials must be packaged, labeled, handled and transported according to stringent regulations.
Hazardous Materials
229
Waste that poses substantial or potential threats to public health or the environment or that has the potential to cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible or incapacitating reversible illness; or pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of or otherwise managed.
Hazardous Waste
230
an itemization of the items included in a particular shipment, plus related details
Manifest
231
Using waste or recycled materials to manufacture a different product
Open-Loop Recycling
232
Contract clause often inserted to motivate supplier to perform on time by imposing a financial obligation in the event of late performance
Penalty
233
changing or adapting resources to be used again in some form that adds value
Recycling
234
a written or computerized request from an internal user/customer to purchasing for the procurement of goods or services from suppliers
Requisition
235
utilizing something again either for its originally intended purpose or in another application
Reuse
236
a comprehensive, systematic, independent, and periodic examination of an organization's supply management environment, objectives, strategies, and activities. it is used to identify strengths and weaknesses, and to develop a plan to improve performance
Supply Managment Audit
237
are reviews that measure what actually happened so actual performance can be compared with planned benchmarks. this type of gap analysis can provide information that will lead to improvements in processes, products, and/or services
After-the-Fact Controls
238
an assessment of supplier's capabilities against a set of established criteria to verify the economics, ease of use, and functional feasibility of the product or service to be purchased
Supplier Audit
239
process deficiency is found through established audits or reviews, a process improvement plan should be established to correct the defect, establish solutions, and define actions to be taken. often a written action plan is necessary that includes a monitoring plan. typically these action plans are due back to the auditor or reviewer
Remediation
240
a cost management method for attributing indirect costs to the activities that drive cost. this approach is in contrast to more traditional accounting methods which pool and allocate indirect costs on a formulaic basis that does not necessarily reflect the true cost structure
Activity-Based Costing (ABC)
241
Completing the sale process by obtaining a customer's commitment to buy
Closing
242
an examination of both the costs and benefits of alternative courses of action to aid in determining whether a course of action should be pursued
Cost-Benefit Analysis
243
A written order drawn by one party (drawer) ordering a second party (drawee) to pay a specified sum of money to a third party (payee)
Draft
244
development of economic information within an organization and communication of that information to decision-makers. information prepared by ___ generally is issued in the form of financial statements
Financial Accounting
245
a widely accepted set of rules, conventions, standards and procedures for reporting financial information as established by the US Financial Accounting Standards Board and other bodies. country-specific principles may co-exist side-by-side with principles developed and published by internationally recognized bodies
Generally Accepted Accounting Principles (GAAP)
246
the act of checking the quality of products and services to determine whether they meet specifications. under the Uniform Commerical Code, purchasers have the right to inspect goods before acceptance
Inspection
247
Global accounting standards adopted by many countries. however, as of 2012 the US had not yet adopted the standards
International Financial Reporting Standards
248
a worldwide federation established in 1947 that promotes the development of global standards to enhance international business interactions. the ___ is comprised of standards organization from more than 140 countries
International Organization for Standardization (ISO)
249
families of standards and guidelines. the ____ family is primarily concerned with quality management or what the organization does to fulfill the customer's quality requirements and applicable regulatory requirements while aiming to enhance customer satisfaction and achieve continual improvement of its performance in pursuit of these objectives
ISO 9000
250
a type of supplier audit that checks internal documentation of complaince audits
Systems Audit
251
the rule-making body of the accounting procession in the US. other countires have similar organizations
Financial Accounting Standards Board (FASB)
252
an independent, private-sector body that develops and approves international financial reporting standards
International Accounting Standards Board (IASB)
253
an upward movement. in supply management, often used to indicate an upward movement of price, also known as economic price adjustment
escalation
254
one of the seven tools of quality management, a ____ is a diagram of the step of a process. each step is identified in sequence along with its key characteristics, such as time involved
Flow Chart
255
a ratio, usually expressed as percentages, indicating average changes in values, quantities or prices. typically, the changes are measured over time, each item being compared with a corresponding figure from some selected base period which is set as 100%
Index
256
a method of drawing a pictorial representation of a process that breaks the process into key activities, transfers, decisions and approvals. process maps enable analysis of the inputs, outputs and interrelationships of each process to understand how processes interact in a system, locate process flaws that are creating systemic problems, evaluate which activities add value for the customer, mobilize teams to streamline and improve processes and identify processes that need to be reengineered. other commonly used terms are flow charting, flow diagrams, process diagrams, and work flows
Process Mapping
257
both an entity's willingness to take risks as well as the hazards that entity is subject to, based on a variety of factors, including business model, purpose of business, and geopolitical and other risks
Risk Profile
258
machine-reading of bar codes upon receipt of goods and withdrawal from inventory enables an organization to keep perpetual (real time) inventory records
Scanning
259
the strategic analysis of each supplier to determine the extent to which the supplier contributes to the core competence and competitive advantage of the buying organization. suppliers can then be segmented according to the strategic value of the relationship, and the investment of resources can be aligned with that value
Supplier Segmentation
260
Outsourcing term; services performed by any person or organization other than the buyer and supplier. examples include transportation, public warehousing, brokerage services, rate auditing, and third-party network services in data transmission
Third-Party Service
261
a legally binding offer to sell or to buy
Bid
262
shipping classification term used for consolidated shipments of multiple commodities. individual commodities are still listed, but consolidation mitigates need for less than container load (LCL) fees and may be used as a way of reducing costs
Freight All Kinds (FAK)
263
a non-governmental group of business people with a shared goal to support business, often including activities such as networking and lobbying. groups range from local, regional, national, or international
Chamber of Commerce
264
Publicly-made, false and malicious statement, either oral or written, that inures another's character, fame or reputation
Defamation
265
Making malicious or false statements of fact as to the quality or performance of an organization's products
Disparagement
266
Tort claim based on making defamatory statements about others in writing
Libel
267
adopted in 1977 and amended in 1988, this US federal law prohibits corrupt payments to foreign officials for the purpose of obtaining or keeping business
Foreign Corrupt Practices Act (FCPA)
268
An international organization founded in 1945 whose purposes, as set forth in the Charter, are: to maintain international peace and security; to develop friendly relations among nations; to cooperate in solving international economic, social, cultural and humanitarian problems and in promoting respect for human rights and fundamental freedoms; and to be a center for harmonizing the actions of nations in attaining these ends
United Nations (UN)
269
an international initiative that brings business together voluntarily to promote socially and environmentally responsible practices
Inited Nations Global Compact
270
sets forth the principle that workers should be protected from sickness, disease and injury arising from their employment
Supply Chain International Labour Standards (ILO) Constitution
271
must be on file for toxic materials, must be posted in the area where the employees are working with the material, and must identify the product, its hazardous ingredients, its chemical and physical properties, its hazards, its expiration date, emergency telephone numbers, and the last date when the ___ was revised
Safety Data Sheets (SDS)
272
a close relationship between a buyer and seller in order to attain some advantages from each other in a positive way. a partnership in this contact does not imply a legal relationship. buyer-seller partnerships may be of operational importance, such as long-term, single source with an office supplier or of strategic importance, such as a long-term, single source relationship with a supplier of a good or service of strategic importance
Alliance
273
material produced as a side effect of a production process. a ___ has value and may be recycled, sold or used in other operations
Byproduct
274
process in which recycled or waste material is utilized in making a new product
Closed-Loop Recycling
275
responsibility or ownership from the creation of an item to its ultimate disposal
Cradle-to-Grave
276
reduction of materials used in creation of products or services, typically accomplished through physical reduction (weight or size), utilization or recycled or alternative materials, or creation of alternative processes to meet the need
Dematerialization
277
the process of removing something from a location, typically the removal of scrap, surplus, excess, obsolete and waste items from an organization's premises
Disposal
278
(1) in product management, the interval from design of a new product through introduction, growth, maturity and decline until its end of life in the marketplace; (2) for capital equipment the time interval during which a piece of equipment is intended to provide useful service
Life Cycle
279
analysis used to help determine the lifetime effects of a product, process or service by assessing the environmental impact, including energy, materials and releases
Life-Cycle Assessment
280
the practice of returning useable materials cast off from a process into a production stream for another use. this is particularly true in primary manufacturing, where clean process scrap can become part of a new cast of material. segregated, clean material can have considerable value
Recycling
281
upgrading or repairing goods and distributing them in the market for resale
Remanufacturing
282
first coined by John Elkington, it is a concept designed and implemented to report the impact of an enterprise's activities on social, environmental and financial factors. also referred to as "people, planet, profit"
Triple Bottom Line (TBL)
283
a goal of ensuring at all materials are reused in some manner, either as like products or transformed into an alternative product. this concept is often considered within product life cycle design
Zero Waste
284
a US-based act that authorizes the EPA oversight of air pollution control, including the responsibility to set limites on pollutants discharged into the air that endanger the health or welfare of humans, as well as the responsibility of working with state and other entities to ensure that plans are in place to meet these standards
Clean Air Act
285
___ created a tax on the chemical and petroleum industries and provided broad US Federal authority to respond directly to releases or threatened releases of hazardous substances that may endanger public health or environment
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
286
response offered by a defendant in a lawsuit in opposition to claims made by the plaintiff as a reason why the plaintiff should not preveil
Defense
287
document providing information about physical dangers, safety procedures and emergency response techniques related to hazardous materials contained in purchased products
Material Safety Data Sheet (MSDS)
288
provides the legislative framework for chemical disclosure within the EU member states and several other non-EU coutnries
European, Registration, Evaluation, Authorization and Restriction of Chemicals Act (REACH)
289
agency under the US department of labor which administers the occupational safety and health act of 1970 to prevent injuries, save lives and protect the health of workers int he US
Occupational Safety and Health Administration (OSHA)
290
an EU directive, the purpose of which is to place restrictions on the use of certain hazardous substances in electrical or electronic equipment sold or used in the EU after July 1 2006
Restriction of Hazardous Substances (RoHS)
291
typically include good governance, ethical behavior, transparency and actions that support the concept that the corporation has a role in the well-being of society, including community involvement and environmental concerns
Corporate Citizenship
292
law governing dealings and communications between different countries
International Law
293
unwelcome physical or verbal sexual conduct that is perceived as a condition of employment; that creates a workplace environment that limits or interferes with an individual's performance; or that makes the workplace intimidating, hostile or offensive
Sexual Harassment
294
a PC based setup that integrates personal processing application with a network of PCs or with a mainframe computer. a ___ allows a user access to very large mainframe databases otherwise inaccessible
Workstation
295
US federal law prohibiting discrimination against people aged 40 or over
Age Discrimination Employment Act (ADEA)
296
a US federal law passed in 1990 that requires organizations with at least 25 employees to make reasonable accommodations for qualified workers and applicants with disabilities and to avoid discriminating against them. compliance includes removing physical workplace barriers
Americans with Disabilities Act (ADA)
297
the body of law, initiated by the US civil rights act of 1964, that aims to ensure that employment-related decisions are based only on an individual's ability to perform the job, not on irrelevant criteria
Equal Employment Opportunity (EEO)
298
US federal law providing a series of amendments to Title VII, expanding its coverage and strengthening its enforcement. coverage was extended to virtually all organizations with 15 or more employees. the EEOC was given the power to file lawsuits against offending organizations
Equal Employment Opportunity Act of 1972
299
US federal law requiring that individuals who perform the same work and are substantially equal in skill and responsibility receive equal compensation
Equal Pay Act
300
US federal law prohibiting discrimination among employees on the basis of race, religion, color, sex, or national origin. the act also bars sexual harassment, prohibiting unwelcome physical or verbal sexual conduct that is perceived as a condition of employment, or that creates a workplace environment that limits or interferes with an individuals performance
Federal Civil Rights Act of 1964 (Specifically Title VII)
301
US federal law passed in 1935 establishing rights of employees to engage in collective bargaining and to strike. also defines unfair employer practices related to union organizing
National Labor Relations Act
302
Title II of this act prohibits employment discrimination based on genetic information about an applicant, employee, or former employee
US Genetic Information Nondiscrimination Act of 2008 (GINA)
303
describes the future nature and purpose of an organization
Vision statement
304
explains the purpose of an organization and its values. describes who organization is, defines key customers, and explains how it will meet their needs
Mission statement
305
what are the 5 E's?
example
educate
environment
experiences
evaluate
306
a mutually advantageous conjunction of business participants or elements so that the outcome is greater than combined effect of what each could have achieved by acting alone
Synergy
307
subordinates lazy, uncreative, undisciplined, and generally uninterested
Theory X
308
work is a natural activity, under approraite conditions most tend to accept and seek responsibility, creativity and imagination are possessed to a reasonable extent by a large number of people but are not fully utilized in most jobs, most people take pride in what they do
Theory Y
309
long term employment, slow but steady advancement to higher level positions, shared/consensus based decision making at all levels of the organization
Theory Z
310
a financial plan that spells out intended actions and the funding levels required for their completion. examples, direct/indirect materials, capital expenditure, operating
Budget
311
process that does not use past experience to determine future needs. must justify all proposed expenditures
Zero-based budgeting
312
links budgeted expenditures to revenue in each budgetary period
Cash Flow Budget
313
formatted to show individual expenses during the budgetary period without tying those expenses into broad programs or goals
Line-item Budget
314
show the number of employees in an organization by their position and their salary
Headcount Budget
315
often used by not-for-profit and government agencies . tie the organizations goals and objectives to the programs or sections responsible for meeting those goals or objectives
Program or Project Budget
316
budget for buildings, equipment and other long-term assets that are used for the operation of the organization
Capital Budget
317
a roadmap detailing the plan of action necessary to assemble and focus resources toward organizational goals
Strategy
318
outline the activities needed to attain the goals and objectives in the organization's strategic plan including specific resources needed such as facilities, equipment, mateirals, and talent
Operational Plan
319
the relationship within the supply management organization as well as groups within the larger organization and community. often used in conjunction with shared goals or objectives
Alignment
320
a keen awareness and ability to judge business situations informed by analysis. an understanding of formal and informal organization structure with agility to navigate politics
Business Acumen
321
the maximum output or producing ability of a machine, a person, an organization, a product or service
Capacity
322
expenses that can be identified with individual units of output, typically direct materials and direct labor. These cost are usually treated as variables and do not include general overhead or common cost allocation
Direct Costs
323
the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements
Logistics
324
the difference between an item's standard costs and the actual price paid
Purchase Price Variance (PPV)
325
the predetermined or planned cost of manufacturing a single unit or of providing a single unit of service. it represents a goal or baseline that is used to project cost, based on experience and/or analysis
Standard Cost
326
Cost categories that change proportionally with the volume of production of goods or the performance of services. major ____ categories are direct materials costs and direct labor categories
Variable Costs
327
scope of project is known, but project is customized and new enough that a fixed price would be inappropriate
Cost-Plus pricing
328
pricing strategy that allows the seller to cover only variable costs, allow seller to either buy into the business or to maintain work during slack periods
Loss-Leader Pricing
329
Key supplier co-locates within your organization and becomes involved in planning and ordering, just like an employee
JIT II
330
the process of acquiring or merging activities on the same level of the value chain
Horizontal Integration
331
expanding either upstream or downstream in its supply chain. acquisition of suppliers or distributors
Vertical Integration
332
the organization both owns units that provide the product or service internally, and uses outside suppliers for the same requirement
Taper Integration
333
Review proposed mergers or acquisitions from the standpoint of how it will alter the competitive landscape
Federal Trade Commission (FTC)
334
A reduction in cost incurred by an organization which has tangible results
Cost Savings
335
To prevent or reduce supplier price increases and ancillary charges through the value analysis, negotiations, and a variety of other techniques. Not tangible
Cost Avoidance
336
Detailed plan to hold costs and purchase prices within certain target limits over a period of time
Cost Containment
337
what are the phases of team building
forming, storming, norming, performing, adjourning
338
what are the 5 elements of effective internal control systems
control environment, risk assessment, control activities, information and communication, monitoring activities
339
the fact or condition of knowing something with familiarity gained through experience or association; acquaintance with or understanding of a science, art or technique
Knowledge
340
management system and related subsystems implemented to establish a relationship between cost, schedule and technical aspects of a project, measure progress, accumulate actual costs, analyze deviations from plans, forecast completion of events, and incorporate changes in a timely manner
Earned Value Management System (EVMS)
341
enables organizations to effectively and efficiently develop and maintain systems of internal control that can enhance the likelihood of achieving the entity's objectives and adapt to changes in the business and operating environments
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
342
sensor technology, real time performance of vehicle fleets can be analyzed
Telematics
343
process of developing IT systems through investigation, analysis, design, implementation, and maintenance
System Development Life Cycle (SDLC)
344
voluntary initiative based on CEO commitments to implement universal sustainability principles, and to take steps to support UN goals
12,500+ participants
largest corporate sustainability initiative
based on 10 principles
United Nations Global Compact
345
passed 1977
prohibits bribes of foreign officials as well as members of nongovernmental organizations for the purpose of obtaining or keeping business
does not prohibit "grease payments"
Foreign Corrupt Practices Act (FCPA)
346
the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipments or procures the goods already so delivered. the risk of loss or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onward
FOB Free on Board
347
the seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place. the parties are well advised to specify as clearly as possible the point within the named place of delivery, as risk passes to the buyer at that point
FCA Free Carrier
348
the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. 'terminal' includes a place, whether covered or not, such as a quay, warehouse, container yard, or road, rail, or air terminal. the seller bears all risk involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
DAT Delivered at Terminal
349
the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. the seller bears all risk involved in bringing the goods to the named place
DAP Delivered at Place
350
the seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of shipments. the risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all costs from that moment onward
FAS Free Alongside Ship
351
improve protection of human health and the environment through the better and earlier identification of the intrinsic properties of chemical substances
Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)
352
tendency to like people that are more like us or have some type of similarity
Affinity Bias
353
tendency to like people because of one great characteristic they have, which makes us neglect the others
Halo Effect
354
tendency to develop stereotypes and assumptions about certain groups, which prevents us from objectively assessing them
Perception Bias
355
tendency for people to seek information that confirms pre-existing beliefs or assumptions
Confirmation Bias
356
tendency for people to make comparisons, especially when, for instance going through a stack of CV's for applicants
Contrast Effect
357
contract null and void from its inception and both the buyer and seller are restored to the position at the start of the contract
Rescission
358
performance specifications; define what product should do but not its design
Black box sourcing
359
design specification provide complete and detailed description of what product must look like, buying organization assumes risk for performance
White box Sourcing
360
a remedy available to a buyer. after displaying due diligence, the buyer is entitled to obtain the goods in the open market and recover damages from the supplier
Cover
