NONDUMISO XABA SUPPLY CHAIN TRAINING

NONDUMISO XABA SUPPLY CHAIN TRAINING Supply Chain Terms Procurement (Part 2) Defining Terms in Procurement (Supply Chain Management) Term 1 Strategic Sourcing Strategic sourcing is the process of selecting suppliers based on long-term value, capability, reliability, risk, and cost-not just the cheapest option. Term 2 Spend Analysis Spend analysis is reviewing purchasing data to identify spending patterns, opportunities, risks, and savings. 2 NEXT Term 3 Total Cost of Ownership TCO looks beyond the purchase price and considers transportation, storage, maintenance, quality issues, returns, downtime, and other costs. Term 4 Cost Savings Cost savings are reductions in spending achieved through negotiations, process improvements, supplier changes, or better purchasing decisions. 3 NEXT Term 5 Supplier Relationship Management (SRM) SRM focuses on building strong relationships with suppliers to improve performance, communication, and collaboration. Term 6 Vendor Management Vendor management is the process of monitoring supplier performance and ensuring suppliers meet agreed service levels. 4 NEXT Term 7 Supplier Onboarding The process of registering, evaluating, and approving a supplier before doing business with them. Example: A supplier submits company documents, banking details, and compliance information before receiving their first order. Term 8 Supplier Risk Management The process of identifying and managing risks that could impact a supplier's ability to deliver goods or services. Example: A company may have backup suppliers in case a key supplier experiences disruptions. 5 NEXT Term 9 Category Management Category management involves grouping similar products or services together and managing them strategically. 6 NEXT Term 10 Product Information Management (PIM) Product Information Management (PIM) is the process or system used to collect, manage, and maintain all product data needed for sales channels such as online stores, catalogues, and retail systems. It ensures that product details like descriptions, prices, specifications, and images are accurate, complete, and consistent across all platforms. 7 NEXT The End.