Chapter 5
1- Many-to-one
a. Buy-side
b. Sell-side
c. Exchanges
2- One-to-many
a. Buy-side
b. Sell-side
c. Exchanges
3- Many-to-many
a. Buy-side
b. Sell-side
c. Exchanges
4- spot buying
a. The purchase of goods and services as they are needed, usually at prevailing market prices
b. Purchases involving long-term contracts that usually are based on private negotiations between
sellers and buyers
5- strategic (systematic) sourcing
a. The purchase of goods and services as they are needed, usually at prevailing market prices
b. Purchases involving long-term contracts that usually are based on private negotiations between
sellers and buyers
6- direct materials
a. Materials used in the production of a product (e.g., steel in a car or paper in a book)
b. Materials used to support production (e.g., office supplies or light bulbs)
c. Indirect materials used in activities that support production
7- indirect materials
a. Materials used in the production of a product (e.g., steel in a car or paper in a book)
b. Materials used to support production (e.g., office supplies or light bulbs)
c. Indirect materials used in activities that support production
8- MRO (maintenance, repair, and operation)
a. Materials used in the production of a product (e.g., steel in a car or paper in a book)
b. Materials used to support production (e.g., office supplies or light bulbs)
c. Indirect materials used in activities that support production
9- vertical marketplaces
a. Markets that deal with one industry or industry segment (e.g., steel, chemicals)
b. Markets that concentrate on a service, materials, or a product that is used in all types of
industries (e.g., office supplies, PCs)
10- horizontal marketplaces
a. Markets that deal with one industry or industry segment (e.g., steel, chemicals)
b. Markets that concentrate on a service, materials, or a product that is used in all types of
industries (e.g., office supplies, PCs)
11- sell-side e-marketplace
a. A Web-based marketplace in which one company sells to many business buyers from e-catalogs
or auctions, frequently over an extranet
b. A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing,
or any other e-procurement method
12- buy-side e-marketplace
a. A Web-based marketplace in which one company sells to many business buyers from e-catalogs
or auctions, frequently over an extranet
b. A corporate-based acquisition site that uses reverse auctions, negotiations, group purchasing,
or any other e-procurement method
13- procurement management
a. The planning, organizing, and coordination of all the activities relating to purchasing
goods and services needed to accomplish the mission of an organization
b. Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices
14- maverick buying
a. The planning, organizing, and coordination of all the activities relating to purchasing
goods and services needed to accomplish the mission of an organization
b. Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices
15- e-procurement
a. The electronic acquisition of goods and services for organizations
b. The process and tools that electronically enable any activity in the sourcing process, such as
quotation/tender submission and response, e-auctions, online negotiations, and spending
analyses
c. The “invitation” to participate in a tendering (bidding) system
16- e-sourcing
a. The electronic acquisition of goods and services for organizations
b. The process and tools that electronically enable any activity in the sourcing process, such as
quotation/tender submission and response, e-auctions, online negotiations, and spending
analyses
c. The “invitation” to participate in a tendering (bidding) system
17- request for quote (RFQ)
a. The electronic acquisition of goods and services for organizations
b. The process and tools that electronically enable any activity in the sourcing process, such as
quotation/tender submission and response, e-auctions, online negotiations, and spending
analyses
c. The “invitation” to participate in a tendering (bidding) system
18- internal procurement marketplace
a. The aggregated catalogs of all approved suppliers combined into a single internal electronic
catalog
b. Direct purchasing from internal marketplaces without the approval of supervisors and without
the intervention of a procurement department
c. The aggregation of orders from several buyers into volume purchases so that better prices can
be negotiated
19- desktop purchasing
a. The aggregated catalogs of all approved suppliers combined into a single internal electronic
catalog
b. Direct purchasing from internal marketplaces without the approval of supervisors and without
the intervention of a procurement department
c. The aggregation of orders from several buyers into volume purchases so that better prices can
be negotiated
20- group purchasing
a. The aggregated catalogs of all approved suppliers combined into a single internal electronic
catalog
b. Direct purchasing from internal marketplaces without the approval of supervisors and without
the intervention of a procurement department
c. The aggregation of orders from several buyers into volume purchases so that better prices can
be negotiated
21- electronic data interchange (EDI)
a. The electronic transfer of specially formatted standard business documents, such as
bills, orders, and confirmations, sent between business partners
b. Private, third-party managed networks that add communications services and security
to existing common carriers; used to implement traditional EDI systems
c. EDI that runs on the Internet and is widely accessible to most companies, including
SMEs
22- value-added networks (VANs)
a. The electronic transfer of specially formatted standard business documents, such as bills,
orders, and confirmations, sent between business partners
b. Private, third-party managed networks that add communications services and security to
existing common carriers; used to implement traditional EDI systems
c. EDI that runs on the Internet and is widely accessible to most companies, including SMEs
23- Internet-based (Web) EDI
a. The electronic transfer of specially formatted standard business documents, such as bills,
orders, and confirmations, sent between business partners
b. Private, third-party managed networks that add communications services and security to
existing common carriers; used to implement traditional EDI systems
c. EDI that runs on the Internet and is widely accessible to most companies, including SMEs