The term "procurement" refers to the process of acquiring goods or services. Procurement typically involves selecting vendors, negotiating contracts, and managing inventory. In many organizations, procurement is a separate department from the rest of the supply chain.
What are the 3 main documents used in the purchasing process? 1. The first document used in the purchasing process is the purchase order. This document is used to request goods or services from a supplier.
2. The second document used in the purchasing process is the invoice. This document is used to track the cost of goods or services purchased.
3. The third document used in the purchasing process is the packing slip. This document is used to track the delivery of goods or services purchased.
What is procurement in simple terms?
Procurement is the process of acquiring goods or services from an external source. It is usually done through a bidding process, in which potential suppliers submit proposals to provide the desired goods or services. The proposals are then evaluated and the supplier with the best offer is selected. What is technical supply chain? A technical supply chain is a term used to describe the process and infrastructure through which a company procures, produces, and distributes its products or services. The technical supply chain includes all activities and functions related to the sourcing, procurement, production, and distribution of goods and services. What are the supply chain terminologies? The term "supply chain" covers a lot of different areas, but there are some key terminologies that are used to describe different aspects of the supply chain. Here are some of the most important ones:
1. Lead time: This is the time that it takes for a product to move from the start of the supply chain (usually the supplier) to the end (usually the customer).
2. Stock: This is the inventory that a company holds at any given time.
3. Capacity: This is the amount of product that a company can produce or move through the supply chain in a given period of time.
4. Throughput: This is the number of products that a company can move through the supply chain in a given period of time.
5.Utilization: This is the percentage of capacity that a company is using at any given time.
6. WIP (Work in Progress): This is the inventory that a company has in the process of being moved through the supply chain.
7. Finished goods: This is the inventory that a company has that is ready to be sold to the customer. What is the difference between SCM and logistics? There are a few key differences between supply chain management (SCM) and logistics.Logistics is a part of the supply chain, but not all of it. SCM includes the management of materials, information, and finances as they move in a chain from supplier to manufacturer to wholesaler to retailer to consumer. Logistics focuses on the movement of materials and information within the supply chain.
Another key difference is that SCM is proactive, while logistics is reactive. SCM strives to minimize risk and maximize efficiency throughout the entire supply chain, while logistics only responds to problems as they arise.
SCM also takes a broader view of the supply chain than logistics does. SCM considers the entire chain as a system, while logistics focuses on individual parts of that system. This means that SCM is more concerned with the big picture and the long-term goal of creating a efficient, effective supply chain, while logistics is more concerned with the day-to-day details of moving materials and information.