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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

E-Procuement

Buying products,

Identify Vendors

Evaluate Vendors

Select Products

Place Orders

Track receipt

Process Payment

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!

Exercise

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

Advantages

Share customer Demand Info

Notify of design modifications

Exchange desing schematics

Increase processing speed

Reduce handling costs

Reduce human (re-key) error

reduce and inform of defects

Challenges

Trust

Costs

Electronic Data Interchange (EDI)

direct and indirect, Exchange of business information between two companies

How EDI Works

Paper Based

EDI-based

ANSI ASC X12

UN EDIFACT

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