Card Set Information
What are 5 options that exist to resolve a dispute?
When resolving a dispute, what are 6 considerations to keep in mind?
3. Complexity/Formality of method
6. Damage to relationship
What is Mediation?
Introducing a third-party into the discussion.
Their role is to listen, sympathize, empathize.
They CANT decide anything (thats Arbitration)
When they take it to the court
Both sides have "already lost"
Costs are maximized
They hear testimony and study evidence from both sides, then make a decision based on the facts
(Purchase orders often have arbitration clauses)
What are Evergreen Contracts?
Orders or contracts with open-ended termination.
Can be difficult to monitor or amend.
What are some trends of Global Sourcing?
Hypercompetative business environment,
Complex distributed supply chain networks,
Faster pace of innovation,
Shorter product life/Faster time to market,
Higher expectation of customer service levels
What are the 3 stages of Global Supply Management?
1. International Purchasing
2. Global Sourcing
3. Global Supply Management
Explain the Purchasing stage of Global Supply Management
Organizations focusing on leveraging volumes.
Explain the Global Sourcing stage of Global Supply Management
Organizations focused on global opportunities.
Explain the Global Supply Management stage of Global Supply Management -___-
Organizations optimize supply networks.
What are the 6 categories of cost?
Variable Manufacturing costs
Fixed Manufacturing costs
Mixed Manufacturing costs
Total Production costs
What is Price Analysis (or Cost analysis)
A review and an evaluation of actual or anticipated costs
Purpose is to arrive at a price that is fair and reasonable to both the buying and selling firms
(Most useful when purchasing Nonstandard items)
Explain Direct Costs?
Direct costs are normally the major portion of product or service costs
They are usually easily traceable
They generally serve as the basis for allocation of supplier overhead costs
(Ex. Direct Labor & Direct Materials)
Explain the process for preparing for Negotiations
90% of time involved should be invested in preparation
: Posses technical understanding, analyze bargaining position, conducted a price analysis, know the seller, know culture, be thoroughly prepared)
What is Target costing?
Focuses on the price the customer will be willing to pay for a product or service
(After removing a reasonable profit from the price, the target cost is identified)
What is MMOG?
Used to conduct a comprehensive evaluation of their supply chain performance and capability
(Developed in 2001 by OEM's through AIAG)
What does GSP mean?
What does MFN mean?
What are the 3 types of competition?
What does SRM mean?
What is significant about Collaborative & Alliance negotiating techniques?
Separate the people (negotiators) from the problem (quality, price)
Focus on interests, not positions
Invent options for mutual gain
Insist on using objective criteria
What are the 2 major purposes of contracts?
Suppliers understand our expectations
They can meet our expectations
They know what to expect from the Buyer
2.They properly align the
Each contract is a bargain
Remedies are available if expectations not met
What does UCC stand for?
Identifies 2 warranties
: Implied & Express