Procurement Strategies: Contract Types, Pricing Clauses and Discount Structures

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Sociology - Management

michael1tekrzp Created by 10 mon ago

Cards in this deck(43)

What are the three types of contract discounts commonly used in procurement?

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What is a cash discount and how does it incentivize early payment?

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What is a trade discount and how does it benefit distributors?

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What is a quantity discount and how does it encourage larger purchases?

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What is a firm-fixed-price (FFP) contract and what are its potential risks?

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What is a Cost-Plus-Fixed-Fee (CPFF) contract and when is it best used?

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What is a Cost-No-Fee (CNF) contract and how does it differ from other cost-based contracts?

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What is a Cost-Plus-Incentive-Fee (CPIF) contract and how does it share costs?

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What is a guarantee against price decline and how does it benefit the buyer?

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What is a price protection clause and how does it safeguard the buyer?

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What is an escalator clause and how does it adjust prices?

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What is a most-favored customer clause and how does it benefit existing buyers?

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What is forward buying and what are its potential risks and benefits?

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What is forward buying good for in terms of market speculation?

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Why is it important to understand supplier costs in procurement?

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What are the factors considered in spend portfolio analysis?

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What is the focus of the bottleneck category in spend analysis?

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Why is trade important in relation to costs and the buyer?

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What is the focus of the non-critical routine category in spend analysis?

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What is the focus of the leverage/commodity category in spend analysis?

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What are the four cost management techniques used in procurement?

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What is Total Cost of Ownership (TCO) and what costs does it consider?

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What are Manufacturing Cost Elements and what categories do they include?

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What are Service Cost Elements and how do they differ from Manufacturing Cost Elements?

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What is Life-Cycle Costing (LCC) and what costs does it primarily consider?

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What is target costing/pricing and how does it involve buyer and supplier collaboration?

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What is the basic formula for calculating cost in a business context?

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What are the three main aspects of Target Costing/Pricing?

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What are the sourcing options available to businesses?

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What criteria should be considered when choosing between single or multiple sourcing?

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When are wholesalers a better option for suppliers?

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When are manufacturers a better option for suppliers?

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What is disintermediation and how does it affect the supply chain?

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When is local onshore sourcing a better option for businesses?

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When is local offshore sourcing a better option for businesses?

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What is the internalization theory and how does it relate to regional economies?

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What are the three aspects of supplier selection criteria?

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How can suppliers minimize risk as per Level 1 Criteria?

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How would a supplier respond as per Level 1 Criteria strategy development?

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What are the current Level 3 criteria for supplier evaluation?

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What are the different supplier evaluation approaches?

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What are the five steps of the scorecard development process?

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What is the Buyer-Supplier Satisfaction Matrix and how is it used?

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