supply chain Flashcards
Supply chain
A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.
Procurement
Every activity involved in obtaining the goods and services a company needs to support its daily operations.
Procurement objectives
Supplier selection is the process by which firms identify, evaluate, and contract with suppliers.
E-procurement benefits
● Time savings.
● Error reduction.
● The electronic system allows users to find out the status of transactions in real time (tendering, delivery, invoice payment, etc.)
● Increased efficiency.
● Faster payment cycle.
● More security.
Transparent spending
ensures that the transaction will be completed only when all database sites involved complete their part of the transaction.
Why using e-procurement increases productivity?
Because it eliminates unnecessary activities, allowing you to focus on more valuable tasks.
How you increase speed using e-procurement?
As the electronic handling of tasks supports and simplifies the purchasing process, transaction speed is increased
Variables of Supply Chain Management (SCM)
● Trade Management
● Information Technology
● Uncertainties
● Manufacturing
● Customer Satisfaction
● Performance
Variables of Customer Relationship Management (CRM)
● Technology (applications and infrastructure)
● Strategy (business goals and objectives)
● Process (procedures and business rules)
● People (organizational structure, skills, and incentives).
Safety stock
Extra quantity of a product which is stored in the warehouse to prevent an out-of-stock situation. It serves as insurance against fluctuations in demand
Consigment inventories
supply chain model in which a product is sold by a retailer, but ownership is retained by the supplier until the product has been sold.
Payment term
They outline how, when, and by what method your customers or clients provide payment to your business.
Cluster
Kind of concentration of companies in a certain geographical area or the concentration of different organizations related to a specific matter and
that are present in a State or region.
Ways to build a Win-Win relationship between the customer and the seller
● Implementing simple techniques focused on sellers’ value at outset.
● Discovering and serving up real value-adds for sellers.
● Finding that perfect balance between upstream customer efficiencies and seller challenges in change management.
Who owns the inventory in a consignment inventory
The supplier
