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Ad-Hoc Purchase An item bought for a single and non-recurring use or purpose Alternative Dispute Resolution (ADR) Any method of resolving a dispute between two parties which does not involve court action, including escalation to higher levels of authority, mediation, adjudication and arbitration Articles of Incorporation The legal document creating a commercial company and setting out its purpose Base Year The starting point for an index, at which point the index is set to 100 Battle of the ...

What is a connected stakeholder? A stakeholder that has a strong interest in a company's activities. This is due to its contractual or commercial relationship with the company. What do internal stakeholders include? Internal end users, contract managers, legal team, employees. What do connected stakeholders include? Suppliers, Customers and clients What do external stakeholders include? Competitors, communities, government and other public agencies What is the definition of value for mone...

Warehouse or store A facility providing for the efficient handling and storage of goods and materials in a planned space environment Stores and warehouses hold Raw materials, components Finished goods Goods returned by customers Pallet A flat wooden struct ur w on which heavy goods are placed and that allows forklift trucks to lift them and move them easily Basic principles of stores and warehouse design Location- located to minimise movement of stock as much as possible Space- sufficient for...

O1. Outline FIVE differences between purchasing goods and purchasing services. 1. Goods are tangible, services are intangible: 2. Services cannot be separated from their supplier: 3. Heterogeneity: goods are usually uniform in nature while services are unique at each delivery 4. Services 'perish' immediately on delivery whereas goods can be stored until required 5. Products are easier to specify, being tangible O2. Explain THREE circumstances in which a competitive tendering exercise migh...

Acceptance testing A form of testing used to determine if the requirements of a specification or contract are met Accrual An adjustment made to a set of financial accounts to reflect activity that has occurred but for which cash has not yet been received or paid Annual planning cycle Planning involves a number of activities, such as analysis of opportunities, setting aims, exploring options, producing detailed plans and reviewing the plan against expectations. A cycle of activities as the ...

Operations Management The processes of managing the resources and processes involved in the acquisition and transformation of inputs and the distribution of outputs. Five Key Performance Dimensions / Performance Objectives - Slack and Brandon-Jones 1. Quality 2. Speed 3. Dependability 4. Flexibility 5. Cost Quality Producing products and services that satisfy customer needs. Speed Ensuring a short lapse of time between when orders are made and fulfilled. Dependability Producing p...

The 13 Stages of the Procurement Cycle Stage 1 - Identify need and develop spec. Stage 2 - Market commodity/make or buy options. Stage 3 - Develop Strategy/Plan Stage 4 - Pre procurement market tests Stage 5 - Prepare Documentation Stage 6 - Supplier Selection Stage 7 - Send ITT Stage 8 - Receive & Evaluate Bids Stage 9 - Award contract Stage 10 - Warehouse/logistics prep Stage 11 - Contract management Stage 12 - Relationship management Stage 13 - End of life/asset management Pr...

The Purchasing process 1. Define Specification. 2. Select Supplier 3. Contract Agreement 4. Ordering 5. Expediting 6. Evaluation Follow up Definition of Procurement & Supply recognition of the fact that the purchasing function has a role in not just "buying inputs" but in "securing supply" Direct Costs These are costs which can be identified directly with the production of a good or service; e.g. raw materials. Usually strategic or leverae suppliers Indirect Costs Thes...

What does STEEPLED stand for? (External factors - macro environment) Sociological, technological, economic, environmental, political, legal, ethical, demographic How many employees does a micro business have? Less than 10 How many employees does a small business have? Less than 50 How many employees does a medium business have? 250 or fewer What are the support activities of porters value chain model? Firm infrastructure, human resource management, technology development and procurement Wha...

Define procurement Procurement is the process of obtaining goods or services through following a process that includes identifying the need through to goods or services being delivered. Define purchasing Purchasing is the act of physically ordering and buying something. Define supply Supply is the infrastructure which ensures goods/services can be delivered Define value Value is the worth of something, the difference between what we pay and what a potential customer is willing to pay What is...