Supply Chain Module 1-3

What inventory should be stocked at each stage in a supply chain? How much inventory should be held as raw materials, semi-finished, or finished goods? The primary purpose of the inventory is to act as a buffer against uncertainty in the supply chain. However, holding inventory can be expensive, so what are the optimal inventory levels and reorder points?

• Location

• Inventory

• Information

• Transportation

This is

suitable for organizations running more than one plant. Under this type, each

plant has its purchasing agents. In other words, every department makes its

purchases. This also calls localized purchasing.

• Decentralized purchasing

• Centralized purchasing

• Purchasing

• Procurement

Item spend analysis refers to analyzing expenditure at an item/

SKU level. It takes into account every individual purchase,

classifying each one of them to identify what department it was for

and what supplier was used.

This analysis gives the ability to know whether a specific item is

being purchased from various suppliers, or in several locations and

at different item prices.

• Contract Spend Analysis

• Item Spend Analysis

• Payment Term Spend Analysis

• Tail Spend Analysis

allows you to explore spend in a defined

spend category hierarchy. This is useful in identifying spend

leakage issues.

• Classification

• Tail Spend Analysis

• Category spend analysis

• Item Spend Analysis

is the practice of analyzing spend data to

decrease costs, increase efficiency, or improve supplier

relationships.

• Spend data

• Spend data management

• Spend analysis

• Spend analytics

(also known as procurement spend data) is

information dealing with a company’s expenditures on

goods and services purchased from external suppliers.

• Spend analysis

• Spend analytics

• Spend data

• Spend data management

When you obtain accurate and reliable data through a spend

management platform, you can identify savings and cost reduction

initiatives and estimate the impact it will have on your bottom line.

• Analyze spend data

• Spend analysis

• Forecast and planning

• Define a strategy

The data that’s collected and stored must be cleansed. This

entails steps such as removing duplicates, correcting any spelling

mistakes, and ensuring that all spend data is recorded in a single

currency. Cleansing and verifying your database validates that

the data you’re using to make key company decisions is as

accurate as possible.

• Analyze spend data

• Verify data

• Centralize expense data

• Create spend categories

Includes general and planning management, legal, finance, accounting,

public affairs, and quality management

• PROCUREMENT

• FIRM INFRASTRUCTURE

• HUMAN RESOURCE MANAGEMENT

• TECHNOLOGY DEVELOPMENT

● Identification of customer needs

● Deploying product into marketplace

● Process of selling to customers

• INBOUND LOGISTICS

• OPERATIONS

• OUTBOUND LOGISTICS

• MARKETING AND SALES