Supply Chain Management Final- Supply Management

supply management
the identification, acquisition, and management of inputs and supplier relationships
supply risk
the probability of an unplanned event that negatively affects a firm’s ability to serve its customers
total cost of ownership
all of the costs incurred before, during, and after a purchase
social responsibility
a framework of measurable corporate policies and behaviors designed to benefit related communities
fixed costs per contract
costs incurred at the start of production or the beginning of a new contract
fixed costs per order
costs incurred each time an order is placed, regardless of the size of the order
variable costs
costs that change in proportion to the quantity of units produced or service delivered
spend analysis
a process that identifies what purchases are being made in an organization
purchase requisition
a document that communicates needs between the user and supply management
supply base optimization
the determination of the number of suppliers to use
adversarial relationships
relationships characterized by distrust and limited communications
arm’s-length relationships
relationships limited to simple purchasing transactions
acceptance of mutual goals
a collaborative relationship that lacks the commitment of a full partnership
full partnership
relationships that have close working relations, trust, mutual respect, and highly integrated operations
competitive bidding
a selection process in which suppliers submit bids to win the buyer’s business
request for proposal
documents that describe the purchase requirements as specifically as possible
weighted-point model
establishes performance categories that are weighted according to importance
online reverse auctions
competitive bidding systems that allow suppliers to submit multiple bids within a fixed time
electronic data interchange
the structured secure electronic transmission of data between organizations
supplier relationship management
a comprehensive system, facilitated by software, that works on managing the firm’s interactions with its supply base.