Chapter 9 Supporting Procurement Processes with SAP Flashcards
Why is procurement process vital?
Vital in a firm’s supply chain
What is procurement?
Process of obtaining g/s as raw material, machine spare parts and cafeteria services
What are the 3 procurement process activities?
1)order
2)Receive
3)Pay
What are the 3 steps in the order activity?
1)Qualify suppliers
2)Get price quotes
3)Create PO
What are the 2 steps in the receive activity?
1)Receive goods
2)Update raw materials
What are the 2 steps in the pay activity?
1)Receive bill
2)Pay supplier
Who does the order activity?
Purchasing managerW
Who does the receive activity?
Warehouse manager
Who does the pay activity?
Accounting
What is the objective of the procurement process?
saving time/money
What is a three-way match?
Making sure that data on invoice matches in purchase order and the goods receipt
What is a purchase requisition?
Internal company document that issues a request for purchase
What are the 4 benefits of SAP for the CBI procurment process?
1)Reduce admin time (data entered once, later shared)
2)Increase responsive to customer (sales and procurement process intergrated)
3)Improve roll up time
4)Improve internal controls
What are the 4 ways SAP improves supply chain process at CBI?
1)Improving Supply Chain Process Management
2) Improving Supply Chain Processes by Data Sharing
3)Improving Supply Chain Processes with Integration
4)Improving CBI Processes Beyond the Supply Chain
What is the procurement process inbound logistics elements (4) within the value chain of CBI?
Receiving, storing, disseminating, inputs to products
What is the procurement process operations within the value chain of CBI?
Transforming inputs into final products
What is the procurement process outbound logistics elements (3) within the value chain of CBI?
Collecting, storing, and physically distributing products to buyers
What is the procurement process sales and marketing elements (2) within the value chain of CBI?
Inducing buyers to purchase products and providing the means for them to do so
What is the procurement process customer service elements (2) within the value chain of CBI?
Assisting customers’ use of products and thus maintaining and enhancing the products’ value
How does SAP improve Supply Chain Process Management?
With Supplier relationship management process (auomates, simplifies, accelerates):
It recudes procurement cost, build collaborative supplier relationship, manage better supplier options, improve time to market
What is the supplier evaluation process?
Determines criteria for supplier selection and remove/adds suppliers
What is the supplier chain management (SCM)?
Administration of supply chain processes: design, plan, execute, integrates all processes
What is data sharing?
Practice of distributing same data to multiple processes
What is a bullwhip effect?
When a company order plus supplies than are needed due to a sudden change in demand
