Vocabulary

Question 1

Demand

Answer 1

Demand- need for a product or service

Question 2

Supply

Answer 2

The availability for something in the market

Question 3

Sale

Answer 3

The exchange of something for money

Question 4

Procurement

Answer 4

When buying something for a company, organization or business

Question 5

Purchase

Answer 5

Getting something for money

Question 6

Primary purchase

Answer 6

The main thing a business need for them to sell their product. For example primary purchase for a hot dog store is hot dogs

Question 7

Secondary purchase

Answer 7

Things that are not directly connected to the product the business is selling but maybe maintenance or investments

Question 8

Capital utilization

Answer 8

How much if the existing capital is used in the business

Question 9

Value chain

Answer 9

The full lifecycle of a product or service including everything from start to finish

Question 10

Supply chain

Answer 10

The network of all individuals, sales, resources etc in a product

Question 11

Profitability

Answer 11

The difference between the costs of a product and the sale price is the profitability

Question 12

Sourcing

Answer 12

The procurement of a product or service for the lowest possible cost. Businesses often source to Asia because of cheap labor

Question 13

Framework conditions

Answer 13

Not a fully agreement but there is enough details agreed that makes it possible to move forward p, Other details will be agreed in the future

Question 14

Procurement process

Answer 14

The whole process from when there is a need and until the need is fulfilled or met.

Question 15

Raw materials

Answer 15

Often materials needed to make the product. Metal, gold, oil etc

Question 16

Semi finished products

Answer 16

Half finished often used as inputs to main product

Question 17

Components

Answer 17

Parts of the product. For example a motor is a component in a car

Question 18

Finished goods

Answer 18

The finished product that has been made

Question 19

Need

Answer 19

Also known as demand. Someone that wants something

Question 20

Buy

Answer 20

Get something for money

Question 21

Purchase criteria

Answer 21

Specific criteria’s that your business follows before making an purchase

Question 22

Specifications

Answer 22

When you kind of customize your product in some kind of way. For example how big a ship want to be with different equipment, colors etc

Question 23

Request

Answer 23

Often comes from the buyer. When buyer wants something or want a price on product he/she send a request

Question 24

Evaluation

Answer 24

Checking something up in a kind of way. This can be if product is safe to purchase from the supplier etc.

Question 25

Negotiations

Answer 25

Trying to get something for a better price

Question 26

Follow up

Answer 26

When you have bought a product or service, you do a follow up to see how things are going

Question 27

Payment

Answer 27

Receiving the money you agreed on

Question 28

Warranty

Answer 28

A guarantee that a product will last for a minimum period of time. In stores we often see products with for example one year warranty etc

Question 29

Experience feedback

Answer 29

The afterward feeling when you have done something

Question 30

Reverse auction

Answer 30

When the buyers invites the sellers to pitch their idea

Question 31

Contract

Answer 31

A binding agreement between two parties

Question 32

Remuneration

Answer 32

Any kind of compensation or pay for a providing service. A salary, hourly rate or a job rate. Bonuses and commissions can also be included

Question 33

Conventional fines

Answer 33

Violating some form of law that can led to conventional fines

Question 34

Installments

Answer 34

Paying down what you own with a down- payment plan. For example 10 million over 2 years with 5 million every half a year

Question 35

ERP (enterprise resource planning) system

Answer 35

Automate and manage core business process for the best optimal performance

Question 36

SRM (supply resource management)

Answer 36

The management over the resources needed for the company

Question 37

Decision support system

Answer 37

A computerized IT system or program used to support the business in the form of determination, judgment and action

Question 38

Procurement performance measurement

Answer 38

How effective a business or organization acquires goods and services to meet the strategic objective/goal

Question 39

Quantity deviation

Answer 39

A certain amount of number that doesn’t match the number of purchase orders

Question 40

Key figure

Answer 40

A key number that a business have gotten from maybe an analysis.