Vocabulary Flashcards
Demand
Demand- need for a product or service
Supply
The availability for something in the market
Sale
The exchange of something for money
Procurement
When buying something for a company, organization or business
Purchase
Getting something for money
Primary purchase
The main thing a business need for them to sell their product. For example primary purchase for a hot dog store is hot dogs
Secondary purchase
Things that are not directly connected to the product the business is selling but maybe maintenance or investments
Capital utilization
How much if the existing capital is used in the business
Value chain
The full lifecycle of a product or service including everything from start to finish
Supply chain
The network of all individuals, sales, resources etc in a product
Profitability
The difference between the costs of a product and the sale price is the profitability
Sourcing
The procurement of a product or service for the lowest possible cost. Businesses often source to Asia because of cheap labor
Framework conditions
Not a fully agreement but there is enough details agreed that makes it possible to move forward p, Other details will be agreed in the future
Procurement process
The whole process from when there is a need and until the need is fulfilled or met.
Raw materials
Often materials needed to make the product. Metal, gold, oil etc
Semi finished products
Half finished often used as inputs to main product
Components
Parts of the product. For example a motor is a component in a car
Finished goods
The finished product that has been made
Need
Also known as demand. Someone that wants something
Buy
Get something for money
Purchase criteria
Specific criteria’s that your business follows before making an purchase
Specifications
When you kind of customize your product in some kind of way. For example how big a ship want to be with different equipment, colors etc
Request
Often comes from the buyer. When buyer wants something or want a price on product he/she send a request
Evaluation
Checking something up in a kind of way. This can be if product is safe to purchase from the supplier etc.
Negotiations
Trying to get something for a better price
Follow up
When you have bought a product or service, you do a follow up to see how things are going
Payment
Receiving the money you agreed on
Warranty
A guarantee that a product will last for a minimum period of time. In stores we often see products with for example one year warranty etc
Experience feedback
The afterward feeling when you have done something
Reverse auction
When the buyers invites the sellers to pitch their idea
Contract
A binding agreement between two parties
Remuneration
Any kind of compensation or pay for a providing service. A salary, hourly rate or a job rate. Bonuses and commissions can also be included
Conventional fines
Violating some form of law that can led to conventional fines
Installments
Paying down what you own with a down- payment plan. For example 10 million over 2 years with 5 million every half a year
ERP (enterprise resource planning) system
Automate and manage core business process for the best optimal performance
SRM (supply resource management)
The management over the resources needed for the company
Decision support system
A computerized IT system or program used to support the business in the form of determination, judgment and action
Procurement performance measurement
How effective a business or organization acquires goods and services to meet the strategic objective/goal
Quantity deviation
A certain amount of number that doesn’t match the number of purchase orders
Key figure
A key number that a business have gotten from maybe an analysis.
