Scm

refers primarily to a manufacturing context and the implementation of just-in-time (JIT) tools and techniques to ensure every step in the supply process adds value, that inventories are kept at a minimum level, and that distances and delays between process steps are kept as short as possible.

According to the Council of Supply Chain Management Professionals, "Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements."

of supply savings is measured by the increase in profit obtained by a decrease in purchase spend.

are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization.

A profitability ratio used to measure how hard the assets of an organization are working. ROA is calculated by dividing the net income by total assets.

focuses on long-term supplier relationships and commodity plans with the objectives of identifying opportunities in areas such as cost reductions, new technology advancements and supply market trends.

"The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer. The development and integration of people and technological resources are critical to successful supply chain integration."

the authority and responsibility for most supply-related functions are assigned to a central organization.

formed when expenditures are high and the commodity is complex and important to success; generally permanent teams.

consist of personnel from multiple functions focused on a supply-related task.

authority and responsibility for supply-related functions are dispersed throughout the organization.

any goods that go into the end product.

a form of collaborative purchasing used by both public and private sector organizations to deliver a wider range of services at a lower total cost.

includes all materials and parts, including allowance for scrap, to make one end unit, for example one two-slice toaster.

a digitized version of a supplier's catalog which allows buyers to use a Web browser to view detailed buying and specifying information about the supplier's products and/or services.

allows computer-to-computer exchange of business documents between two organizations using agreed standards to structure the message data.

a virtual shopping mall; business‑to‑business e‑marketplaces are network services on which member companies buy and sell their goods and exchange information.

An e-procurement system is an applications software package that allows the requisitioning, authorizing, ordering, receiving, invoicing, and paying for goods and services over the Internet.

provide a corporate platform for information technology and include a suite of applications such as financials, channel revenue management, human capital management and project management. Examples: SAP and Oracle.

the application of pressure on a supplier to meet the original delivery promise, to deliver ahead of schedule, or to speed up delivery of a delayed order.

a claim against the buying organization.

system where production parts go from the receiving dock to production requiring consistent quality, and small, frequent deliveries.

A variety of items, all of comparatively low value, needed immediately when any kind of a plant or equipment failure occurs.

When applied to annual spend, roughly 70 to 80 percent of transactions account for only 10 to 15 percent of spend.

Buyer-generated document that authorizes a purchase transaction.

issued to gather information about potential suppliers' products and services. An RFI is NOT a solicitation for business or an offer to do business.

used for more complex requirements where price is only one of several key decision factors, and bidders are invited to use their expertise to develop and propose one or more solutions.

a price comparison tools that is issued when there is a clear and unambiguous description of the need, for example a grade of material, a stock-keeping unit (SKU), or other commonly accepted terminology.

used in a competitive bid process with or without the opportunity to negotiate after bid receipt.

the document used to communicate needs internally between users/specifiers and supply management according to established accounting controls.

an online, real time, dynamic, declining price auction for goods or services between one buying organization and a group of pre-qualified suppliers.

used in a manual purchasing process used for recurring requirements and standard parts to reduce operating expenses.

inventory management system in which the supplier manages the inventory at the buyer's location(s); typical for MRO items.

reversing a previous buy decision. An organization chooses to bring in-house an activity, product or service previously purchased outside.

reversing a previous make decision; an activity, product or service previously done in-house will next be purchased.

Common in military and construction procurement, when a prime contractor bids out part of the work to other contractors.