Final Flashcards
What are the steps of Supplier Management Process?
Identify need, select supplier, develop supplier, provide feedback
Define transactional relationship
A relationship in which the buyer has many supplier choices, does not need to share internal company information during the exchange, is purchasing a noncritical item, does not require technology innovation from the supplier, and does not expect to experience shortages in supply.
Define collaborative relationship
A buyer/supplier relationship marked by long-term cooperation.
What tools help you search for potential suppliers?
Current suppliers, internet, trade registers, trade journals, company personnel, trade shows, professional organizations
List supplier evaluation tools
Supplier self-assessment with a weighted-factor analysis
What are the steps in the Negotiation Process?
Preparation, face-to-face discussions resulting in an agreement, debriefing
What is a scorecard?
A communication device that serves two key roles for the supply manager: (1) it identifies the supplier performance metrics that are most critical to the supply manager organization, and (2) it enables the evaluation of suppliers against these key metrics.
List Logistics trade-offs
(1) Cost-to-cost trade-off, (2) modal trade-off, and (3) cost-to-service trade-off.
Define cost-to-cost trade off
Trading off speed of delivery with saving fuel or other costs.
Define modal trade-off
Evaluating the trade-offs of shipping through various modes of transporation
Define cost-to-service trade-off
Cost of improving service and service levels.
List modes of transportation
Maritime shipping, rail, trucks and cargo vans, air, pipelines
What does the square root rule mean?
A calculation for calculating safety stock inventory in warehouses, given the number of warehouses.
Define weighted center of gravity method
A method to identify a good (but not necessarily an optimal) location for the placement of a new facility.
