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Statement of Work (S.O.W)

Relationships

Jan 19, 2011

Legal Issues

Purchasing law has been primarily developed from laws regarding contracts. In order for a contract to be valid, four conditions must be present: 1) Parties with full contractual capacity should…

Jan 19, 2011

Supplier Integration in New Product Development

Supplier integration into new product/process/service development suggests that suppliers are providing information and directly participating in decision making for purchases used in the new product/process/service. This integration can occur during…

Jan 19, 2011

Joint Venture

An agreement between two or more firms to risk equity capital to attempt a specific business objective. Source: http://www.apics.org/

Jan 19, 2011

Supplier Development Training

Education and training is the most common approach to supplier development and improvement. A purchaser may provide training in statistical process control, quality improvement techniques, just-in-time delivery or any other…

Jan 19, 2011

Insource vs Outsource

The act of deciding whether to produce an item internally or buy it from an outside supplier. Factors to consider in the decision include costs, capacity availability, proprietary and/or specialized…

Jan 19, 2011

Strategic Alliance

A relationship formed by two or more organizations that share (proprietary), participate in joint investments, and develop linked and common processes to increase the performance of both companies. Many organizations…

Jan 19, 2011

Industry Standards

An industrial standard is a uniform identification that is agreed on. Industrial standardization can be defined as the process of establishing agreement on uniform identifications for definite characteristics of quality,…

Jan 19, 2011

Supplier-Customer Partnership

A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer’s organization. The partnership is based on…

Jan 19, 2011

Customer/Order Fulfillment Process

A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting. Source: http://www.apics.org/

Jan 19, 2011

Statement of Work (S.O.W)

The most critical ingredient of a successful procurement of services is the development and documentation of the requirements – the statement of work. The S.O.W. identifies what the contractor is…