chapter 8 Flashcards
(9 cards)
Definition of spend analysis
examines various efforts of an organization to manage how much they spend on various activities to conduct business
Common purchase mistakes
Assuming small order doesnt warrant much time
Assuming supplier offerings are equal except for price
Failing to allow supplier to suggest alternatives
Failing to build stakeholder consensus in purchasing decision s
Failing to qualify a new supplier
Purchases vs procurement
photo on docs
Contact negotiations and management
Flexibility, formality, renegotiate, leverage
Total cost analysis
Examines all costs associated with a decision
All= Direct and indirect costs
Total cost of ownership
Acquisition costs
Operating costs
Personnel costs
Definition of green sourcing
Purchasing products and services from vendors that consider environmental aspects of the products
Global sourcing issues
Risk, regulations, customer service
