SAP Flashcards
(11 cards)
According to our textbook, the supply chain profession may experience some challenges in the near future. Identify and summarize three of them.
Since technology is constantly changing supply chain managers must adapt to how they run their operations based on the advancement of technology in society
Supply chains have increased globally and now face risks of supply interruptions such as financial and exchange rate fluctuations. For example, our dollar value going down affects Canada’s purchases from other countries.
High inflation is causing unpredictable price increases and is leaving consumers with less disposable income. As a result, the demand for goods and services is currently very low
Our textbook outlines nine goals of supply; identify 5 of them..
Improve the organizations competitive position
Maintain and improve quality
Find best-in class suppliers
Achieve productive internal relationships
Accomplish objectives at the lowest cost
Purchase required items and services at lowest total cost of ownership
Accomplish supply objectives at the lowest possible operating costs
With respect to large organizations, there are three common organization models for supply; identify and describe each.
Centralized, where the authority and responsibility for most supply-related functions are assigned to a central organization.
Hybrid, where authority and responsibility are shared between a central supply organization and business units, divisions, or operating plants.
Decentralized, where the authority and responsibility for supply-related functions are dispersed throughout the organization.
Identify each supply specialization commonly found in large supply organizations. For each, provide a list of three responsibilities.
Sourcing and commodity:
Responsible for selecting suppliers, determining prices and creating POS.
Material management:
Scheduling planning, Inventory control, Transportation inspection
Administration:
Manages department budget keeps resource data required to operate department and prepares reports for top management and supply
Supply research:
Performing benchmarking studies, evaluate commodities and eliminate or reduce gap in performance requirements.
List in order the nine essential steps in the supply process..
- Recognition of need
- Description of need
- Identification of potential sources
- Supplier selection and determination of terms
- Preparation and placement of purchase order.
- Follow-up and/or expediting the order
- Receipt and inspection
- Invoice clearing and payment
- Maintenance of records and relationships
Our textbook outlines the traditional objectives of supply management, sometimes referred to as the seven R’s. Identify each of them.
- Right product
- Right quantity
- Right condition
- Right place
- Right time
- Right customer
- Right price
A requisition is a gatekeeping tool that manages the flow of information through 3 gates; identify each gate and the pertinent question that supply personnel should ask themselves upon receipt.
Authority - Does the requisitioner have the authority to make the specified request goods or services and at the specified budget level?
Internal clarity - Is the need described in a clear and unambiguous way?
Internal clearance - should the buyer recommend a substitute if there are market shortages or better alternatives?
Our textbook outlines multiple benefits related to the use of Information Systems by supply departments. Identify 5, describe 1.
Cost reduction and efficiency
Less risk of errors
Data accessibility
Better communication
Dedicate resources to strategic issues
Real time data
Our textbook outlines three tools commonly used to solicit business with potential sources. Identify and summarize when you would use each tool
Request for quotation - when there is a clear description of the need
Request for proposal - more complex requirements where price is only one of several key deciding factors
Request for bid - used in competitive bid process with or without the opportunity to negotiate after the bid
Tell me the five major purposes of receipt and inspection. Describe a situation when this function would not be necessary.
Confirm that the order placed has actually arrived
Check that the shipment arrived in good condition
Ensure the quantity ordered has been received
Forward the shipment to its proper destination (storage, inspection or use)
Ensure that proper documentation of the receipt is registered and accessible to appropriate parties
Our textbook outlines multiple benefits related to the use of Information Systems by supply departments. Identify 5, describe 1.
Cost reduction and efficiency gains
Data accessibility
Speedier communication
Dedicate resources to strategic issues
Data accuracy
Systems integration
Monetary control
