HM08- L3- L5 Flashcards
Applied Busines Tech
1
Q
entity that supplies goods (raw materials) and services (deliver service) to businesses
A
suppliers
2
Q
provides the bulk of value contained within products
A
suppliers
3
Q
suppliers are also known as
A
vendors
4
Q
an entity paid for goods provided
A
vendor
5
Q
TRUE/ FALSE: it is impossible for the vendor to operate as both supplier/ seller of goods and manufacturer.
A
FALSE (impossible- possible)
6
Q
determines the cost of the product
A
price
7
Q
terms of payment refer to:
A
cash, debit, credit
8
Q
- it is when the product evolves
- as a supplier, there is innovation
- it is earned
A
competency
9
Q
manufacturing always refers to __
A
tangible products
10
Q
example of wholesale
A
department stores
11
Q
efficient vs. effective
A
efficient- high-quality work without error and on-time
effective- on-time but has errors
12
Q
all about efficiency
A
streamline of products
13
Q
refers to the one who provides people/ staff needed
A
manpower agency
14
Q
six (6) factors in choosing the best supplier
A
price
terms of payment
reliability
location
stability
competency
15
Q
- affordable but of good quality
- the PRIMARY consideration in choosing a supplier
A
price
16
Q
with flexible terms
A
terms of payment
17
Q
ship the right no. of items, as promised on time so that they arrive in good shape
A
reliability
18
Q
find a comparable supplier close to home to present cost savings and ordering flexibility
A
location
19
Q
- long-term contract with a supplier and with a solid reputation
- can MAKE OR BREAK a business
A
stability
20
Q
- who can offer the latest, most advanced products & services
- knowledgeable and trained
A
competency
21
Q
four (4) types of suppliers:
A
manufacturer and vendor
wholesalers and distributors
independent craftspeople & trade show
importers
22
Q
helps create positive buyer-suppler relationships and determine which activities to engage with each supplier
A
supplier relationship management (SRM)
23
Q
a SYSTEMATIC approach in addressing the supplier’s contribution and influence on success and determining tactics to maximize the supplier’s performance in developing the STRATEGIC approach for executing the determinations
A
supplier relationship management (SRM)
24
Q
goal of supplier relationship management (SRM)
A
to streamline and implement processes between buyers and its suppliers
25
not only the supplier makes the effort but also the buyer (wherein buyer should motivate the supplier)
supplier relationship management (SRM)
26
the supplier relationship management process:
1. supplier segmentation
2. developing governance and performance management models for suppliers
3. improving relationships with suppliers
27
it categorizes suppliers based on their importance to the business
supplier segmentation
28
identify standards that will help the business evaluate the effectiveness of the supplier
developing governance and performance management models for suppliers
29
possibility of working with strategic partners to increase innovation either through process improvement and product development or both
improving relationships with suppliers
30
process of managing a business' inventory and stock
inventory management
31
includes aspects like storage of inventories, overseeing the orders for stock inventory, and controlling the no. of items in stock
inventory management
32
four (4) benefits of inventory management
- to achieve economies of scale
- to balance demand & supply
- to protect from uncertainty and order cycles
- to act as a buffer between the various stages of supply chain
33
five (5) types of inventories:
1. cycle inventory
2. safety inventory
3. speculative inventory
4. seasonal inventory
5. dead stock
34
- refers to goods/ supplies that a business keeps on-hand to meet its minimum product requirement
- you keep stocks until time of event
cycle inventory
35
- carried to satisfy demands subject to unpredictable demand fluctuations
- reduce product shortages
- not hoarding since you store for your safety (price changes)
safety inventory
36
it means buying in bulk and there is an intent/ greed
hoarding
37
stocks that a company purchase in anticipation of future demands
speculative inventory
38
- products that sell at a higher velocity during a particular period
- law of supply-demand
seasonal inventory
39
inventory that is unsellable
dead stock
40
costs or expenses associated with inventory management
1. cost of capital
2. spoilage cost
3. handling cost
4. occupancy cost
5. miscellaneous cost
41
- anything bought that is expensive
- land and heavy equipment
cost of capital
42
cost that you incur when there is waste
spoilage cost
43
costs that includes delivery and transportation
handling cost
44
costs that include rent of the space and lease
occupancy cost
45
- costs that includes the rent of materials/ equipment and income of staff
- anything that is incurred during the operation
miscellaneous cost
46
two (2) inventory control systems
1. order fixed quantities of stock at variable times
2. order variable quantities at fixed times
47
three (3) common inventory methods:
FIFO (First In, First Out)
LIFO (Last In, First Out)
LCM (Lower of Cost/ Market)
48
this inventory method is applicable only to stocked items
FIFO
49
this inventory method refrs to perishable products to assure freshness
LIFO
50
this inventory method applies to technology (the latest and in-demand)
LCM (Lower of Cost/ Market)
51
- the act of obtaining/buying goods and services
- involves searching and locating the raw materials at a reasonable price
- AIM: find the right suppliers for the goods and services
procurement
51
refers to all tasks involved in obtaining the optimal product from an optimal vendor, on optimal terms
procurement
52
the preparation and processing of demands, all the way to the process of receiving and making payment of goods and services
procurement process
53
4 (four) step procurement process:
1. Planning the purchase + setting right standards to vendors
2. Research and selection
3. Analysis of value
4. Price bargaining + financing
54
this process is used when there is a need
Planning the purchase + setting right standards to vendors
55
this process checks/ determines cost without compromising quality (costing)
analysis of value
56
if the procurement process does not go through/ pass, one should go back to research and selection
price bargaining and financing
57
part of procurement, specifically, on the DURING PURCHASE stage of the process
purchasing
58
five (5) pre-purchase procurement activities:
1. define organization needs
2. search and review potential suppliers
3. conduct research on solutions offered by potential suppliers
4. compare prices offered by suppliers
5. determine which options pose the best opportunity for success
59
procurement during purchase involves
enter serious negotiations like pricing to chosen supplier
physically fill out and deliver POS to initiate purchase
fulfilling your end of agreement (ensure smooth payment of orders to supplier)
60
about transactions that get you what you want when you need it
purchasing
61
- building long-term relationships to get the whole supply chain performing at the next level
- about maximizing VALUE CREATION for the company
procurement
62
purchasing vs. procurement
purchasing:
- about transactions that get you what you want when you need it
procurement:
- building long-term relationships to get the whole supply chain performing at the next level
- about maximizing VALUE CREATION for the company
63
it is the 1st step in the supply chain
procurement
64
in the sample procurement process (no partner supplier and with a partner), this step is done by the head/ accounting/ general manager
- check with current stock
2. request is accepted
65
in the sample procurement process (no partner supplier), this involves contact or agreement finalization and signing
6. choose the best supplier
66
in the sample procurement process (no partner supplier), this step involves quality assurance and a 2-way match of PO from received orders
9. delivery and receiving
67
what does OPTIMAL mean in the supply chain?
- best quality
- needs to follow a process (no shortcut)
68
TRUE/ FALSE: big businesses undergo a process called BIDDING and it is not prone to corruption due to commission fees.
FALSE (not prone- prone)
69
bargaining =
negotiate
70
in procurement, this is the last step.
purchasing
71
what is the last process in purchase?
"which supplier will determine the business' success?"
72
TRUE/ FALSE: once you make a fill-out and payment, a business can back out.
FALSE (can back out- cannot back out)
note: payment is a form of agreement that is BINDING
73
TRUE/ FALSE: businesses always follow the procurement process with supplier partner
TRUE
74
businesses have them in searching for possible suppliers
supply officer
75
For the sample procurement process, one product is received ____ inputs the orders received in the system.
inventory management
