Procurement, Manufacturing, and Logistics

Flashcards covering key concepts from procurement, manufacturing, logistics, and customer service.

Procurement

The process of acquiring goods and services from suppliers.

Strategic Sourcing

A data-driven approach to procurement focusing on cost savings and supplier partnerships.

Supply Management

The process of managing all activities related to obtaining materials and services.

Total Cost of Ownership (TCO)

Includes purchase price + costs of operation, maintenance, and disposal.

Flexible Manufacturing

Adapts to demand changes with minimal reconfiguration.

Make-to-Stock (MTS)

Producing for inventory based on demand forecasts.

Muda

Any activity that does not add value in Lean Manufacturing.

Break-even Analysis

Used to determine when revenue equals total costs.

Logistics

The management of goods movement and storage.

Customer Relationship Management (CRM)

Involves sales tracking, customer data management, and personalized marketing.

Reverse Logistics

Managing returned goods efficiently.

Supplier Scorecard

Used to assess supplier performance based on various metrics.

Direct Materials

Essential components used in the production of final goods.

Indirect Materials

Necessary for operations but not part of the final product.

Kraljic’s Portfolio Model

A classification tool for supplier management and strategy.

Order Fulfillment Methods

Methods of processing and delivering customer orders.

Intermodal Transportation

Using multiple modes of transport for efficiency.

Production

The process of creating goods/services.

Manufacturing

The physical transformation of raw materials into finished goods.

Five Goals of Production

Cost efficiency, quality assurance, speed/time efficiency, flexibility in operations, sustainability.