bmgt472

Distributors, wholesalers, and retailers:

may provide valuable services and a better price than the manufacturer

Common Carriers:

offer transportation services to all shippers at published rates between designated locations without discrimination

Strategic alliances:

support the idea that supplier relationships contribute to organizational success

T or F: Environmental management, safety, diversity, human rights, and quality of life, ethics, and community and philanthropic activities can be easily qualified and included in supply policy and practice.

False

T or F: Obsolete is obsolete. Something that has been declared obsolete in one organization will be considered obsolete in all other organizations.

False

T or F: Transportation costs decrease as distance, quantity, and speed increase.

False

T or F: Historically, the advantages of local sourcing were a more dependable service, greater flexibility, and detailed knowledge of the buyer's specific requirements.

True

T or F: Strategic supply management is founded on the conviction that a signification competitive edge can be gained from the suppliers an organization has developed and its supply systems and supplier relationships

True

T or F: The bill of lading is the key document in the movement of goods.

True

Types of Suppliers:

1. Transactional: commodity, 80% - replaceable 2. Tactical/core: needed to operate, 15% - important/new 3. Strategic: strategic items, 5% - important in the future

Supplier Selection Criteria:

1. direct vs. indirect 2. noneconomic considerations 3. multiple vs. single sourcing

Types of Unusable Materials:

1. excess/surplus inventory - can be used by buying firm in the future 2. obsolete inventory - cannot be used by buying firm 3. rejected end item - poor quality, rejected by buyer 4. scrap - no longer serviceable/has been discarded OR the by-products of the production process; can have some value 5. waste - no economic recovery value

Disposable Options

1. throw out 2. reclaim 3. donate 4. create new products 5. sell at a discount 6. return to the supplier 7. sell in other markets

Multiple sourcing:

Concerns exist about supplier capacity for future volume

A transportation strategy should include consideration of:

Safety on the ground/air/water, environmental factors like pollution, consolidation of freight, and alternative transport modes - all of the above

Reverse marketing:

an aggressive, purchaser-initiated approach to finding and developing world class suppliers

Transportation rates:

are established primarily through negotiation

Private Carriers:

companies that own and operate transportation equipment to transport their own products

Exempt Carriers:

exempt from regulation of services & rates & if they transport certain exempt products

Buyer-supplier partnerships:

result in early supplier and supply involvement in design and description

The many by-products of the production process, such as fly from cotton spinning; warp ends from weaving; ferrous and nonferrous metal from boring, drilling, and stamping machines; flash metal from the foundry process; or paper cuttings from the binding process are examples of:

scrap

Contract Carriers:

service to a limited number of suppliers, sometimes cheaper than common carriers because of high volumes and predictable scheduling

The supplier evaluation process that includes: 1) factors of criteria for evaluation 2) the importance of each factor 3) a system for rating each supplier on each factor is called:

weighted point evaluation

The selection of the FOB point is important to the purchaser for it determines:

who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for filing damage claims, and who routes the freight - all of the above