UH SCM 3301 EXAM 3 terms - UH SCM 3301 EXAM 3 1 Supply...

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1.2.3.4.5.6.7.8.9.10.11.12.13.UH SCM 3301 EXAM 3Supply managementThe broad set of activities carried out by organizations to analyze sourcing opportunities, developsourcing strategies, select suppliers, and carry out all the activities required to procure goods andservices.Cost of goods sold (COGS)The purchased cost of goods from outside suppliers.Merchandise inventoryA balance sheet item that shows the amount a company paid for the inventory it has on hand at aparticular point in time.Profit marginThe ratio of earnings to sales for a given time period.Return on assets (ROA)A measure of financial performance, generally defined as earnings/total assets. Higher ROA values arepreferred because they indicate that the firm is able to generate higher earnings from the same assetbase.Profit leverage effectA term used to describe the effect of $1 in cost savings increasing pretax profits by $1 and a $1increase in sales increasing pretax profits only by $1 multiplied by the pretax profit margin.Spend analysisThe application of quantitative techniques to purchasing data in an effort to better understandspending patterns and identify opportunities for improvement.Industry analysisProfiles the major forces and trends that are impacting an industry, including pricing, competition,regulatory forces, substitution, technology changes and supply/demand trends.Maverick spendingSpending that occurs when internal customers purchase directly from non qualified suppliers andbypass established purchasing procedures.InsourcingThe use of resources within the firm to provide products or services.OutsourcingThe use of supply chain partners to provide products or services.Make-or-buy decisionA high-level, often strategic, decision regarding which products or services will be provided internallyand which will be provided by external supply chain partners.Core competencies
14.15.16.17.18.19.20.21.22.23.24.25.26.Organizational strengths or abilities, developed over a long period, that customers find valuable andcompetitors find difficult or even impossible to copy.

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