Logistics

What is strategic sourcing?

• Development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business.

• Estimate of the cost of an item that includes all the costs related to the procurement and use of the item, including disposing of the item after its useful life.

• Management functions that support the complete cycle of material flow

• comprehensive financial analysis over the entire life cycle of a capital purchase.

What is sourcing?

• A solicitation that asks for a detailed proposal from a vendor interested in supplying an item. 

•  How commonly available the material is and whether substitutes can be used.  

• Process suitable for procuring products that are strategically important to the firm.

What is specifity?

• A solicitation that asks for a detailed proposal from a vendor interested in supplying an item. 

•  How commonly available the material is and whether substitutes can be used.  

• Process suitable for procuring products that are strategically important to the firm.

What is request for proposal?

• A solicitation that asks for a detailed proposal from a vendor interested in supplying an item. 

•  How commonly available the material is and whether substitutes can be used.  

• Process suitable for procuring products that are strategically important to the firm.

What is outsorcing?

• Moving some of a firm’s internal activities and decision responsibility to outside providers.

• The annual cost for a company to produce the goods or services provided to customers.

• A measure of supply chain efficiency

What is logistics?

• Refers to the management functions that support the complete cycle of material flow

• when a customer actually allows the supplier to manage the inventory policy of an item or group of items for them.

•  How commonly available the material is and whether substitutes can be used.  

Acquisition costs are the initial costs

associated with the purchase of materials, products, and services.

• True

• False

What is total cost of ownership?

• Is an estimate for the cost of an item that includes all the costs related to the procurement and use of the item, including disposing of the item after its useful life 

• It can also help drive cost reductions in a variety of ways, including product content substitution, waste reduction, and lower usage

Post-ownership costs

include all costs incurred by the firm after the finished product has reached the end customer.

• False

• True

What are some examples of Ownership costs?

• Energy costs

• Disposal

• Financing

• Taxes