Term
| adversarial relationships |
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Definition
| Relationships characterized by distrust and limited communications. |
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Term
| acceptance of mutual goals |
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Definition
| A collaborative relationship that lacks the commitment of a full partnership. |
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Term
| arm's-length relationships |
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Definition
| Relationships limited to simple purchasing transactions. |
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Term
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Definition
| A selection process in which suppliers submit bids to win the buyer's business. |
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Term
| electronic data interchange (EDI) |
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Definition
| The structured secure electronic transmission of data between organizations. |
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Term
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Definition
| Costs incurred at the start of production or the beginning of a new contract. |
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Term
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Definition
| Costs incurred each time an order is placed, regardless of the size of the order. |
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Term
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Definition
| Relationships that have close working relations, trust, mutual respect, and highly integrated operations. |
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Term
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Definition
| Acquiring inputs from operational processes done within the firm. |
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Term
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Definition
| The choice between insourcing or outsourcing production parts or services. |
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Term
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Definition
| A bargaining process involving a buyer and seller seeking to reach mutual agreement. |
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Term
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Definition
| Competitive bidding systems that allow suppliers to submit multiple bids within a fixed time. |
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Term
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Definition
| Acquiring inputs from operational processes done by suppliers. |
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Term
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Definition
| A document that communicates needs between the user and supply management. |
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Term
| request for quotation (RFQ) |
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Definition
| Documents that describe the purchase requirements as specifically as possible. |
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Term
| request for proposal (RFP) |
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Definition
| Documents that describe the purchase requirements as specifically as possible.Documents that describe the purchase requirements as specifically as possible. |
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Term
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Definition
| A framework of measurable corporate policies and behaviors designed to benefit related communities. |
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Term
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Definition
| A process that identifies what purchases are being made in an organization. |
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Term
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Definition
| An assessment that verifies effective procedures related to the buyer's requirements. |
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Term
| supplier relationship management (SRM) |
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Definition
| A comprehensive system, facilitated by software, that works on managing the firm's interactions with its supply base. |
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Term
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Definition
| Used to report a supplier's performance on key performance indicators (KPI). |
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Term
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Definition
| The determination of the number of suppliers to use. |
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Term
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Definition
| The identification, acquisition, and management of inputs and supplier relationships. |
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Term
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Definition
| The probability of an unplanned event that negatively affects a firm's ability to serve its customers. |
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Term
| total cost of ownership (TCO) |
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Definition
| All of the costs incurred before, during, and after a purchase. |
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Term
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Definition
| Establishes performance categories that are weighted according to importance. |
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Term
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Definition
| Costs that change in proportion to the quantity of units produced or service delivered. |
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