Industry analysis

Profiling the major forces and trends that are impacting an industry,
including pricing, competition, regulatory forces, substitution,
technology changes, and supply/demand trends.

Corporate social responsibility def

the economic, legal, ethical, and discretionary expectations that
society has of organizations at a given point in time.

Corporate social responsibility concept

child labor?

Green supply chain concept

All of the above?

Steps in Strategic Sourcing process

Access Opportunities, Profile internally and externally, develop the
sourcing strategy, Screen suppliers and create selection criteria,
Conduct Supplier Selection, and Negotiate and Implement Agreements

Spend Analysis

The application of quantitative techniques to purchasing data in an
effort to better understand spending patterns and identify
opportunities for improvement.

Industry analysis

Profiling the major forces and trends that are impacting an industry,
including pricing, competition, regulatory forces, substitution,
technology changes, and supply/demand trends.

Single supplier

volume leverages as volumes go up, cost per unit decreases as
supplier spreads fixed costs over larger volume

Single supplier

Transportation economics- fewer shipments and lower per-unit
transportation costs.

Single supplier

Reduces quality variability; standardized products.

Single supplier

Build stronger relationship with supplier, and gains access to design
and engineering capabilities.

Single supplier

Required when volume is too small to split between two suppliers.

Multiple supplier

Creates competition

Multiple supplier

spreads risks

Multiple supplier

required if the purchased volume is too great for one supplier

Multiple supplier

Desired if firm wishes to meet obligations to support minority suppliers

Multiple supplier

can ensure that suppliers do not become �complacent�

Multiple supplier

can also help reduce inbound freight costs and lower lead times.

Request for quotation (RFQ)

A formal request for the suppliers to prepare bids on specific
products/services, based on the terms and conditions set by the buyer.

Procedure to pay cycle steps

ordering, follow-up and expediting, receipt and inspection,
settlement and payment, and records maintenance � could ask which one
is not a step.

Procedure to pay cycle

The set of activities required to first identify a need, assign a
supplier to meet that need, approve the specification or scope,
acknowledge receipt, and submit payment to the supplier.