Supply Chain Management Concepts

Front

Procurement

Back

The process of finding, negotiating, and purchasing the goods and services a company needs from outside suppliers.

Front

Supplier Management

Back

Planning and maintaining relationships with suppliers, including setting expectations, monitoring quality and delivery, solving problems, and evaluating performance.

Front

Inventory Management

Back

Tracking and controlling stock levels, locations, and movement to ensure the right items are available at the right time without over- or under-stocking.

Front

Electronic Data Interchange (EDI)

Back

A standardized, computer-to-computer way for companies to exchange business documents like purchase orders and invoices without manual data entry.

Front

Logistics Management

Back

Planning, executing, and optimizing the movement and storage of goods from origin to destination, including transportation, warehousing, and order fulfillment.

Front

Drop Shipment (Dropship)

Back

A fulfillment method where a seller takes the order, but the product ships directly from the manufacturer or wholesaler to the customer; the seller never handles the inventory.

Front

Back Orders

Back

Customer orders for items that are temporarily out of stock; the seller promises delivery once new inventory arrives.

Front

Landed Cost

Back

The total cost to bring a product to your warehouse, including item cost, international/domestic freight, insurance, duties/tariffs, taxes, brokerage/handling, and final inland transport.

Front

Purpose of Procurement

Back

To acquire necessary goods and services from external suppliers efficiently and cost-effectively.

Front

Role of Supplier Management

Back

Ensures effective supplier relationships to maintain quality and timely delivery of goods and services.