BUS170 - Chapter 5 - Business-to-Business Activities: Improving Efficiency and Reducing Costs

Accredited Standards Committee X12 (ASC X12)

committee to develop uniform EDI standards.

American National Standards Institute (ANSI)

the coordinating body for standards in the United States since 1918.

Automated clearing house (ACH)

a service that banks use to manage their accounts with each other.

Business process offshoring

the distribution of non-manufacturing business activities to international suppliers.

Customer portal

site that offers private stores along with services such as part number cross referencing, product usage guidelines, safety information, and other services that would be needlessly duplicated if the sellers were to participate in an industry marketplace.

Direct connection EDI

requires each business in the network to operate its own on-site EDI translator computer.

Direct materials

those materials that become part of the finished product in a manufacturing process.

EDI compatible

firms that exchange data in specific standard formats.

E-government

governments' use of electronic commerce to improve the efficiency with which they undertake their own support activities and serve their stakeholders better.

E-procurement software

allows a company to manage its purchasing function through a Web interface.

E-sourcing

the use of Internet technologies in sourcing activities.

Impact sourcing

offshoring that is done to benefit training or charitable activities in less developed parts of the world. Also called smart sourcing.

Independent exchange

trading exchanges focused on a particular industry.

Indirect connection EDI

occurs when the trading partners pass messages through the VAN instead of connecting their computers directly to each other.

Indirect materials

all other materials that the company purchases, including factory supplies such as sandpaper, hand tools, and replacement parts for manufacturing machinery.

Industry consortia-sponsored marketplace

marketplace formed by several large buyers in a particular industry.

Industry marketplace

trading exchanges focused on a particular industry.

Knowledge management

the intentional collection, classification, and dissemination of information about a company, its products, and its processes.

Nonrepudiation

the ability to establish that a particular transaction actually occurred.

Outsourcing

the hiring of another company to perform design, implementation, or operational tasks for an information systems project.

Private company marketplace

marketplace that provides auctions, request for quote postings, and other features to companies that want to operate their own marketplaces.

Private store

has a password-protected entrance and offers negotiated price reductions on a limited selection of products—usually those that the customer has agreed to purchase in certain minimum quantities.

Purchasing card (p-card)

gives individual managers the ability to make multiple small purchases at their discretion while providing cost-tracking information to the procurement office.

Radio Frequency Identification Device (RFID)

small chips that use radio transmissions to track inventory.

Real-time location systems (RTLS)

tracking systems that use bar codes to monitor inventory movements and ensure that goods are shipped as quickly as possible.

Smart sourcing

offshoring that is done to benefit training or charitable activities in less developed parts of the world. Also called impact sourcing.

Sourcing

the part of procurement activity devoted to identifying suppliers and determining the qualifications of those suppliers.

Stockout

when a retailer loses sales because it does not have specific goods on its shelves that customers want to buy.

Supply alliances

the long-term relationships created among participants in the supply chain.

Supply chain

the part of an industry value chain that precedes a particular strategic business unit.

Supply chain management

when companies integrate their supply management and logistics activities across multiple participants in a particular product's supply chain; the job of managing that integration.

Third-party logistics (3PL) provider

when transportation and freight companies engage in the business of operating all or a large portion of a customer's materials movement activities.

Tier-one suppliers

a small number of very capable suppliers.

Tier-three suppliers

provide tier-two suppliers with components and raw materials.

Tier-two suppliers

manage relationships with the next level of suppliers.

Transaction sets

the names of the formats for specific business data interchanges.

Ultimate consumer orientation

meeting the needs of the consumer at the end of the supply chain.

Vertical portal (vortal)

hub that offers a doorway (or portal) to the Internet for industry members.