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Chapter 5 Key Concepts by Mind Map: Chapter 5 Key Concepts
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Chapter 5 Key Concepts

Purchasing and Logistics


Buying products,

Direct Vs. Indirect Materials

Direct: goes into manufacturing and finished goods Indirect Materials: MRO Maintence, repairs, operating supplies

Logistics Management

Support Services & KM

KM: Knowledge Management everytime someone touchs your product, some value should be added, if there isnt, then they shouldnt touch the product!


B2B Models and e-Marketplaces

Private stores

Customer Portals

access + search assistance

Industry Marketplace

Consortium Marketplaces

Consortium Marketplaces

Private company Marketplaces

Fig 5-14

Supply Chain Management (SCM)

Upstream & Downstream

Upstream: everything that went into the product  Downstream: getting that product to the customer



Electronic Data Interchange (EDI)

direct and indirect, Exchange of business information between two companies

How EDI Works



Direct vs. VANs

connecting directly to another companies computer.  Not seen that much, need a lease line that always has to be on and cost money

Internet EDI

Security issues  VAN: Vurtual added network, intermediary VPN: Vertual Private Network

Financial EDI

ACH: intermediary for bank information