Session 2

Question 1

Contract manufacturer

Answer 1

First tier suppliers who manufacture products for OEMs

Question 2

Design for manufacturer (DFM)

Answer 2

Designing products that can be assembled or manufactured cheaply and efficiently

Question 3

Environmental separation index (ESI)

Answer 3

An index that measures the difference between the working environments of outsourcer and outsourced companies

Question 4

External integration

Answer 4

Integration of business processes across more than one organisation in the supply chain

Question 5

Horizontal collaboration

Answer 5

Collaboration between suppliers who would conventionally be viewed as competitors

Question 6

Internal integration

Answer 6

Integration between business functions within a single organisation

Question 7

Nearshoring

Answer 7

Where companies move their offshore activities to countries closer to their home market as a result of the potential risks and delays associated with moving products from a distant location

Question 8

Order qualifiers

Answer 8

Criteria and/or performance expectations that a company must meet for a customer to even consider it as a possible supplier

Question 9

Original equipment manufacturer (OEM)

Answer 9

Companies that produce final, branded products (with the components often produced by CMs)

Question 10

Supply base rationalization

Answer 10

The process of reducing or rationalizing the number of suppliers in a supple network, typically to reduse complexity and therefore cost

Question 11

Vertical collaboration

Answer 11

Collaboration between suppliers and customers along the supply chain

Question 12

Virtual organizations

Answer 12

Companies which outsource most, if not, alle major functions