SCMN 2150 Test 2 with Complete Solutions

SCMN 2150 Test 2 with Complete Solutions supply management The identification, acquisition, access, positioning, management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives strategic sourcing an institutional procurement process that continuously improves and re- evaluates the purchasing activities of a company procurement the purchase of merchandise or services at the optimum possible total cost in the correct amount and quality At the right price From the right source At the right specification In the right quantity For delivery at the right time To the right internal customer 6 specifics of buying products and services for procurement buy products and services the 'what' of the focus of procurement Understand business requirements Streamline purchasing processes Identify better sources of supply the 'how' of the focus of procurement 1. Monitor KPIs and take corrective action, to ensure value is provided by suppliers 2. Create visibility into process and performance across the entire supply management life cycle 2 reasons why it is important to evaluate suppliers key performance indicator KPI quality, cost, service, value added extras what needs to be measured? meets specs aspects of quality cost competitive aspects of cost fill rate, timeliness, exceptions aspects of service perfect purchase order percent Order arrives on time, without defects, and with perfect documentation at the right location with correct quantities of all SKUs ordered production the process by which inputs are combined, transformed, and turned into outputs. May involve products and/or services manufacturing to transform materials via assembly, fabrication, conversion processes into a finished product, especially by means of a large-scale industrial operation input a resource used in the creation of output transformation the operation or action that takes place output what is created by transforming the inputs