The Size of the Organization's Spend and Financial Significance
Supply Contribution
Strategic Planning
Potpourri
Key Terms
100
The acronym for return on assets.
What is ROA?
100
The efficiency in which supply process are performed will show up in other operating results.
What is effect on efficiency?
100
Methods used by businesses to create higher profit margin on its products or services by reducing the costs of the business without sacrificing the quality of its service.
What are cost-reduction strategies?
100
The supplier agrees to perform the agreed-upon quality tests and supply the test data, with the shipment, to the buying firm.
What are Quality certification programs?
100
Refers to the amount of money an organization spends with its suppliers each year.
What is Annual Spend?
200
Savings measured by the increase in profit obtained by a decrease in purchase spend.
What is Profit-Leverage Effect?
200
Used as a way of communicating the purpose of the organization.
What is a mission statement?
200
Designed to maximize the likelihood that the considerable knowledge and capabilities of every supply chain members are available to the buying organization.
What are supply chain support strategies?
200
Measures the impact of supply management actions on the inventory asset base and the balance sheet.
What is Turn on assets (ROA) effect?
200
Designed to reduce the laid-down cost of what is acquired, or the total cost of acquisition and use—life-cycle cost.
What are cost-reduction strategies?
300
Technique used my companies to reduce inventory in order to free up cash for investment in revenue-growth.
What is Reduction in Inventory Investment?
300
The identification, assessment, and prioritization of risks in an organization.
What is Risk Management
300
Designed to anticipate and recognize shifts in the total environment so that it can turn them to the long-term advantage for the buying organization.
What are environmental-change strategies?
300
Performance of the supply management function can be viewed in these two contexts.
What are trouble avoidance and opportunistic?
300
An action plan designed to achieve specific long-term goals and objectives.
What is a strategy?
400
This measure of corporate performance is calculated by dividing a company's annual earnings by its total assets.
What is Return-on-Assets Effect?
400
Primary examples include information about prices, availability of goods, new sources of supply, and new products.
What are information sources?
400
Designed to ensure future supply needs are meet.
What are assurance of supply strategies?
400
Interest in the performance of the supply function began when this form of transportation became prominent.
What is the railroad?
400
Designed to maximize the likelihood that the considerable knowledge and capabilities of supply chain members are available to the buying organization.
What are Supply chain support strategies?
500
Advocated reductions in inventory investment.
Who is Charles Dehelly?
500
Besides "Operational versus strategic", and "Direct and indirect", this is the third example of major perspectives on Supply.
What is "Negative, neutral, and positive?"
500
Requires identifying a specific target audience with a clearly defined need, developing and delivering a high-quality and appropriately priced product or service and doing it better than anybody else.
What are competitive edge strategies?
500
What?, Quality?, What Price?, How Much?, and Where? comprise this.
What are strategic components?
500
"Do it right the first time" is far more cost-effective than making corrections after the fact.