Term
| What are lotting strategies? |
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Definition
| Include online bidding and reverse auctions and are structured to increase cost-reduction opportunities. |
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Term
| What are the two steps of two-step bidding? |
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Definition
1. Bids are requested only for technical proposals without prices.
2. Bids are only sent to those suppliers that submitted acceptable techincal proposals that asks those suppliers to submit an updated bid with pricing. |
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Term
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Definition
| A bid that has been submitted in a sealed envelope to prevent its contents from being revealed or known before the deadline. |
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Term
| In order to be enforceable, what must a contract have? |
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Definition
| An offer and and acceptance |
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Term
| What are Porter's Five forces? |
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Definition
1. The extent and intensity of direct competition
2. The threat of entrants
3. The threat of substitute products and services
4. The power of buyers
5. The power of suppliers
All these are used to describe competition |
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Term
| U.S. Federal E-Sign Law Applies to who? (what type of contracts) |
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Definition
| Both Interstate Contracts and International contracts |
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Term
| The obligation of one party to cover the loss or damage suffered by another party |
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Definition
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Term
| A provision to restrict the disclosure of proprietary information |
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Definition
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Term
| A buying organization has the greatest opportunity to experience cost efficiencies when it ______________ What about the suppliers |
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Definition
| When it understands it's manufacuring process. Because it can compare the actual result to established goals. This represents the control feature of budgeting activity. |
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Term
| Using a sole sourced supplier with significant transparency of costs between buyer and seller in order to leverage each firms comparative advantage is an example of a strategy for what category of spend? |
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Definition
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Term
| Strategic category of spend is used when? |
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Definition
| I usually used in purchases involving high value and high risk of acquisition. |
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Term
| Critical catagory strategy is usually used when? |
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Definition
| When you much have continuity of supply maintained, but do not necessarily involve rigorous specifications or technology. |
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Term
| Leverage Category purchases are usually used when |
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Definition
| For high volume items for which substitutions and or competition among supplier is readily available. |
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Term
| Tactical catagory spend is usually used when |
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Definition
| to support the strategic and operational initiative of an organization. |
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Term
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Definition
| Is a contract in which one party (the surety) agrees to be primarily responsible for the debt of another. |
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Term
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Definition
| "identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity |
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Term
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Definition
| An example of this would be where a supply manager learns that a component will require that the organizations research and development group and the supplier's technical staff will need to work together to implement a proprietary technology. The supply manager arranges for an internal team to visit and assist the supplier in developing the component. |
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Term
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Definition
| This describes items that are low value, but high risk products |
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Term
| What exchange rates are set by governments? |
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Definition
Fixed and Differential exchange rates.
(floating and variable are determined by market forces) |
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Term
| Cost savings opportunites using spend information obtained can BEST be identified through? |
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Definition
| Standardization and aggregation |
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Term
| Forecasting method that utilizes opinions gathered from people |
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Definition
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Term
| What is Market Exploitation? |
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Definition
| Market exploitation involves taking advantage of a chaning focus in the marketplace to link the organizations goods and services to customers interests: for example, tailoring ads to highlight eco-procuts. |
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Term
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Definition
technique for estimating the relationships among variables
for example
I did a regression analysis and determinded that all customers that went to bobs auto sales were more likely (85%) to buy a more expensive (over 30k) car if they have a higher personal income. (over 90k) This is an very simplified example of a regression analysis. |
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Term
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Definition
A Kraljic Matriz compares spend versus market risk.
example (see below)[image] |
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Term
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Definition
Is a demad forcasting model
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Term
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Definition
| Modular bill creates a separate bill of materials for each option. Modular bills can be plugged into the parent bill as the options are called for. |
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Term
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Definition
| Phantom bill is a list of items that are used together but not assembled into each other. (similar to a kit of parts, like a model car) |
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Term
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Definition
implosion bill creates a where-used list of the parents of an item. For example, the requirements for axle, rim, and spoke are imploded into the requirements for the wheel which in turn are imploded into the requirements for the whole bicycle
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Term
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Definition
| Is an artificial grouping of items used to facilitate master scheduling and material planning |
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Term
| Development cycle time reduction |
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Definition
| This is when the buye incorporates the supplier's ideas and technology (instead of possible duplication of effort by the buying organization) to bring new products or services to the market more quickly. |
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Term
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Definition
| Is an aggressive approach to developing supplier relationships, in which the buying organizaiton takes the initiative in making a proposal for a business relationship to a supplier. (instead of the seller) |
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Term
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Definition
| The buying organization provides assistance such as training to a supplier. |
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Term
| What does EOQ stand for? and what is the folmula |
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Definition
Economic Order Quantity
[image]
A = Annual usage in units
Cp = Order Cost
Ch = Carrying Cost |
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