Purchasing Flashcards
Centralized
One location/decider
Decentralized
Multipl locations/deciders
Corporate steering committes
Main stakeholders that decide on organization order of business. Strategic guidance
Supply base optimization
Reduce number of suppliers the organization works with
Relationship management
Evaluating and systematic approach to evaluat relationship supplier/purchaser
Gray box design
suppliers working alongside customers , engineering for producst development
Black box design
supplier carryout development of components for customersS
SOW
Statement of work
Suppler managed inventory
SMI
Vender managemtn inventory
VMI
Sustainable supply market
Meeting supply needs w/o compromising avility of guture generation to meet their own needs
Risk management
Identify , evaluation and prioritize risks
Operations risk management
ORM:
Risk management
Decision making
implementation of risk control
reduce threats to acceptable levels
KPI
key performance indicators
Supplier performance indecx
Metrics to measure supplier
currency hedging
attempt to reduce effects of currency fluctuation on investment performance
MRP
material requirements planning - planning system inventory requirements while balancing supply and demand
Kaizen
continous improvement from everyone in organization which = increased quality and change
Cost Base system
categorical system
purchasing goods/services by groupoing into categories
CISG
Contract for international sale of goods
Global sourcing
develop product in Europe/US, manufacture in Asia/latin America and sell globally
vendor supplied material
VSM - similar to VMI
Supply chain management
management of flow of data, goods and finances related to product or service from raw good to final destination
Supply management
procurement/purchasing /supplly management
3PL
Third party logistics - offers SC and shipping.receiving
logostics operations
warehousing, inventory,
reverse supply chain
retrieving used product from customer and dispose or reuse it
Value Chain
tracing product’s cost at each stage
eRP
enterprise resource planning, software w/suite of app to integrated various functions within organization and facilitates communication w/stakeholders
RFI
request for information
RFQ
request for quote
RFP
request for proposal
Request for bid
RFB
eRFX
electronic procurement - encompass all
MRO
Maintenance repair operations
MSA
master service agreement -supplier agrees to service specifics and not to exceed $ over specific amount of time
P2P
procure to pay - process of requisitioning, purchasing, receiving, paying for, accounting, goods and services
FTL or LTL
full truck load, Less (than) truck load
Churn
breakdown in communication between customer and service rep[
Phrases to use in customer service
You’re right,
Have you considered?
However, AND
However, YET
Would you mind
What do you think
May I explain?
As a knowledgable customer you will appreciate this
I’ll handle this personally
Don’t use WHY, use WHAT ABOUT, HOW WOULD YOU FEEL
Encoding
deciding what want to say
Decoding
Received the message and interpretinging
Direct or Indirect
customer interact w/employee (opposite of self service)
Customers want
personal recognition,
courtesy
timely service
professionalism
enthusiastic service
empathy
patience
EOQ
Economic order quantity -
Ideal qty to purchase to minimize inventory costs
Purchase order PO contains a what?
Offer
Free on board
FOB- point at which other side takes liability of item
