24 Glossary


Business-to-Business (B2B) Electronic communication and transactions among business entities such as manufacturers, wholesalers, retailers and suppliers.
Competitiveness The degree to which a nation can produce goods and services that meet the test of international market.
Core competencies The essential capabilities that create a firm’s sustainable competitive advantage; the activities that a firm does best.
E-business The replacement of physical business processes with electronic ones.
E-commerce Trade that occurs over a computer network, usually the Internet.
Flexibility In operations, the ability to adjust to changes in product mix, production volume, or product and process design.
Logistics The transportation and distribution of goods and services.
Operations A function or system that transforms inputs into outputs of greater value.
Order qualifiers The characteristics of a product or service that qualify it to be considered for procurement.
Order winner The characteristic of a product or service that wins orders in the marketplace.
Positioning Determining how a firm will compete in the market place.
Primary task The task that is most central to the operation of a firm; it defines the business that a firm is in and is often expressed in a mission statement.
Procurement Is the process of obtaining goods or services in any way, including borrowing, leasing and even force or pillage, in a wider context of supply management relevant to today’s business practices.
Productivity A measure of effectiveness in converting resources into products, generally computed as output divided by input.
Purchasing The acquisition of goods and services in return for a monetary or equivalent payment.
Sourcing The selection of suppliers.
Supply chain The facilities, functions and activities involved in producing and delivering a product or service from suppliers (and their suppliers) to customers (and their customers).
Supply Chain Management (SCM) Managing the flow of information through the supply chain in order to attain the level of synchronisation that will make it more responsive to customer needs while lowering costs.
Strategy A common vision that unites an organisation, provides consistency in decisions, and keeps the organisation moving in the right direction.
Vision What an organisation sees itself becoming and how it intends to get there.



BLC 304/05 Procurement Management Copyright © 2009 by Wawasan Open University. All Rights Reserved.


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