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Definition
| to identify user requirements, evaluate the user needs effectively and efficiently, identify suppliers who can meet that need, develop agreements with those suppliers, develop the ordering mechanism, ensure payment occurs promplty, ascertain that the need was effectively met, and drive continuous improvment. |
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Definition
| selection, development, and maintenance of suppliers |
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| have significant stake on the effectiveness of purchasing performance |
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| functinal groups carry out certain duties on behalf of the organization |
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Definition
| the suite of tools used to achieve efficiency in purchasing transactions |
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| buy something once may never need it again |
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Definition
| specifies the work that is to be completed, when it is needed, and what type of service provider is requires |
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Definition
| stock checks involve the physical checking of inventory to verify that system records match actual on-hand invetory levels |
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| Description by market grade or industry standard |
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Definition
| best choice for standard items, where the requiremtns are well understood and there is common agreement between supply chain partners about what certain terms mean |
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Definition
| is used when a product or service is proprietary, or when there is perceived advantage to using a particular supplier's products or services. |
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| Description by specification |
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Definition
| very detailed desriptions of the characterisitcs of an item or service |
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| Description by performance charactersistics |
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Definition
| focuses attention on th eoutcomes the customer wants, not on the precise configuration of the product or service |
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Definition
| first opportunity for new business |
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Term
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Definition
| a purchase manager sends a form to the supplier |
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Term
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Definition
| when the purchase contract requires negotiation between the buyer and seller purchasing send ___ to a supplier. |
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| Reverse Auction (e auction) |
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Definition
| the buyer identifies potential qualified suppliers to go online to a website at a designated time and bid to get the business |
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Term
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Definition
| the drafting of a purchase order called____, takes place after supplier selection is complete |
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Definition
| an open order, usually effective for one year, covering repeated purchases of an item or family of items |
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Definition
| allows the buyer to terminate the contract in the event of persistently poor quality, delivery problems, and so on |
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| Electronic acknowledgement and reciept |
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Definition
| the electronic transfer of purchase documents beteween the buyer and seller, and can help shorten order cycle time |
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Definition
| supplier provides, details the contents of a shipment |
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Definition
| to record the quantity of goods delvered to a facility |
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Definition
| automatic transfer of payment from the buyer's bank account to the supplier's bank account |
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Definition
| the rate that a transporation carrier charged |
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Definition
| allows users to contact suppliers directly |
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Term
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Definition
| failing to respond to the needs of internal customers will diminsh the confidence these users have in purchasing, and they may try to negotiate contracts themselves |
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Term
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Definition
| supply managers must be responsive to the materials and support needs of their internal users or____ |
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Definition
| most common method of informing purchasing of material needs |
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