Industrial Distribution Program - Purchasing Applications in Distribution

These flashcards cover key vocabulary and concepts related to global sourcing and industrial distribution as outlined in the lecture notes.

Worldwide Sourcing

The practice of sourcing goods and services from global suppliers to optimize cost and quality.

International Purchasing

Commercial purchase transactions between buyers and suppliers in different countries.

Global Sourcing

Proactively integrating and coordinating common items and processes across worldwide purchasing and engineering locations.

INCOTERMS 2020

International Commercial Terms that outline the responsibilities of buyers and sellers in international transactions.

Barter

The oldest form of countertrade involving the direct exchange of goods without the use of currency.

Counterpurchase

An agreement requiring the seller to purchase a specified amount of goods from the same country buying their products.

Offset

A flexible form of countertrade allowing sellers to offset their trade obligations across industries.

Buy-Back

An arrangement where a seller agrees to buy back products produced by a plant they built or supported.

Foreign Trade Zones (FTZ)

U.S. locations where companies can defer duties on foreign-produced goods that enter the zone.

Currency Risks

The potential for loss due to changes in exchange rates when conducting international transactions.