Page 285 - Electronic Commerce

Chapter 5

indirect connection EDI smart sourcing
indirect materials sourcing
industry consortia-sponsored marketplace spend
industry marketplace spot market
Internet EDI spot purchasing
knowledge management stockout
260
maintenance, repair, and operating (MRO) supply alliances
nonrepudiation supply chain
offshoring supply chain management
open EDI supply web
outsourcing third-party logistics (3PL) provider
private company marketplace tier-one suppliers
private store tier-three suppliers
production strategy tier-two suppliers
public marketplace transaction sets
purchasing card (p-card) ultimate consumer orientation
Radio Frequency Identification Devices vertical portal (vortal)
(RFIDs) Web EDI
real-time location systems (RTLS)
replenishment purchasing

Review Questions

1. In one or two paragraphs, explain the differences between an industry value chain and a
strategic business unit’s supply chain.
2. The business purchasing process is often more complex than most consumer purchasing
processes. In about 100 words, outline the differences between a typical consumer pur-
chase and a business purchase.
3. Briefly define the term spend as it is used in business purchasing. In a paragraph or two,
explain how the Internet has reduced the spend of many U.S. manufacturing companies.
4. In a paragraph or two, distinguish between direct materials and indirect materials and
explain why companies manage these costs in different ways.
5. Would the use of purchasing cards be more helpful in controlling direct materials costs or
indirect materials costs? In a paragraph or two, explain why.
6. In a paragraph or two, explain why a company might contract with a third-party logistics
provider. Be sure to include the benefits a company might expect from such an
arrangement.
7. In about 100 words, explain why smaller companies might outsource elements of their
human resources, payroll, or retirement plan management operations.

Copyright 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.