Term
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Definition
| a buyer who will always allocate only a share to each vendor, never giving one vendor all of the business |
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Term
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Definition
| the amount that is spent on each vendor and for what products |
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Term
| automatic replenishment (AR) |
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Definition
| a form on just-in-time inventory management where the vendor manages the customer's inventory, and automatically ships and stocks products at the customer's location based on mutually agreed-upon standards |
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Term
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Definition
| informal, cross-department group of people involved in a purchase decision |
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Term
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Definition
| major purchases made by a business, such as computer systems, that are used by the business for several years in its operations or production process |
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Term
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Definition
| puchase decision process that arises when decisions made early in the process have significant influence on decisions made later in the process |
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Term
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Definition
| buying center members who make the final selection of the product to purchase |
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Term
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Definition
| situation in which the demand for a producer's goods is based on what its customers sell |
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Term
| efficient consumer response |
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Definition
| distribution system that drives inventory to the lowest possible levels, increases the frequency of shipping, and automates ordering and inventory control processes without the problems of stockout and higher costs |
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Term
| electronic data interchange |
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Definition
| computer-to-computer linkages between suppliers and buyers for information sharing about sales, production, shipment, and receipt of products |
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Term
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Definition
| organizational and/or personal needs that are associated with some type of personal reward and gratification for the person buying the product |
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Term
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Definition
| businesses that purchase goods and services to support their own production and operations |
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Term
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Definition
| buying center members who influence the buying process by controlling the flow of information and/or limiting the alternatives considered |
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Term
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Definition
| buying center members inside or outside an organization who directly or indirectly influence the buying process |
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Term
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Definition
| the person who starts the buying process |
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Term
| just-in-time (JIT) inventory control |
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Definition
| planning system for reducing inventory by having frequent deliveries planned just in time for the delivered products to be assembled into the final product |
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Term
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Definition
| method for determining the cost of equipment or supplies over their useful life |
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Term
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Definition
| a buyer who gives all business to one vendor is considered this for all of the out-suppliers, because the buyer has cemented this relationship for a long period of time |
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Term
| material requirements planning (MRP) |
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Definition
| planning system for reducing inventory levels by forecasting sales, developing a production schedule, and ordering parts and raw materials with specific delivery dates |
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Term
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Definition
| purchase decision process associated with a customer who has purchased the product or service in the past but is interested in obtaining additional information |
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Term
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Definition
| minor purchases made by businesses for maintenance and repairs such as towels and pencils |
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Term
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Definition
| purchase decision process associated with the initial purchase of a product or service |
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Term
| original equipment manufacturer (OEM) |
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Definition
| business that purchases goods (components, subassemblies, raw and processed materials) to incorporate into products it manufactures |
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Term
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Definition
| firm that buys goods and services to manufacture and sell other goods and services to its customers |
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Term
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Definition
| the net profit the reseller makes, expressed as a percentage of sales |
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Term
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Definition
| system of minimizing order quantities to the lowest level possible while increasing the speed of delivery to drive inventory turnover; accomplished by prepackaging certain combinations of products |
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Term
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Definition
| organizational and/or personal needs that are directly related to product performance |
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Term
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Definition
| businesses, typically distributors or retailers, that purchase products for resale |
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Term
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Definition
| an auction but instead of a seller offering a product and buyers bidding, a buyer offers a contract and sellers bid; prices fall as sellers compete with the sale |
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Term
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Definition
| end-user purchases such as internet and television connections, employment agencies, consultant, and transportation |
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Term
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Definition
| purchase decision process involving a customer with considerable knowledge gained from having purchased the product or service a number of times |
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Term
| supplier relationship management (SRM) |
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Definition
| the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits |
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Term
| supply chain management (SCM) |
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Definition
| set of programs undertaken to increase the efficiency of the distribution system that moves products from the producer's facilities to the end user |
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Term
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Definition
| an account is given to another salesperson because the buyer refuses to deal with the current salesperson |
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Term
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Definition
| members of a buying center that ultimately will use the product purchased |
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Term
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Definition
| problem-solving approach for reducing the cost of a product while providing the same level of performance |
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Term
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Definition
| a formal method used by organizational buyers to summarize the benefits and needs satisfied by a supplier |
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Term
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Definition
| commitment of a buyer to a specific supplier because of the supplier's performance |
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