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Supply Chain Management Ch.3

Terms in this set (16)

Why should an organization be concerned with supplier relationships?
Organizations should be concerned with supplier relationships because the relationship between a company and supplier is what gives a company an edge over its competition using communication and negotiation on both sides
How can an organization manage its suppliers effectively?
by communicating and being transparent with the supplier. Using automated systems and consistency an organization can make sure that it's on the same page with its supplies
What are the key factors that contribute to a lasting buyer-supplier partnership?
building trust, shared vision and objectives, personal relationships, mutual benefits and needs, information sharing and lines of communication
What are the criteria used in evaluating a supplier?
process based ( production), performance based, whether or not they are certified
Total Cost of Ownership
the combination of the purchase or acquisition of price of a good or service and additional costs incurred before or after product or service delivery
Pre-transaction
costs that are incurred prior to order and receipt of the purchased goods
transactions
costs include the cost of the goods/services and cost associated with placing and receiving the order
post transaction
costs incurred after the goods are in the possession of the company, agents, or customers
supplier certification
an organizations process for evaluation the quality systems of key supplier sin an effort to eliminate incoming inspections
ISO 9000
a series of management and quality assurance standards in design, development, production, installation and service developed by the International Organization for Standardizations
What are the principles of the ISO 9000
customer focus, leadership, involvement of people, process approach, system approach to management, continual improvement, factual approach to decision making, mutually beneficial supplier relationships
ISO 14000
a family of international standards for environmental management developed by the International Organization for Standardization
Supplier Development
any activity that a buyer undertakes to improve a supplier's performance and/or capabilities to meet the buyer's short and long term supply needs
Supplier Relationship Management (SRM)
the systematic management of supplier relationships to optimize the value delivered through the relationship over their life cycle
Transactional SRM
a system that enables an organization to track supplier interactions such as order planning, order payment and returns. The volume of transactions involved may result in independent systems maintained by geographic region or business lines
Analytic SRM
a method that allows the company to analyze the complete supplier base
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