ECON 1 Lecture Notes - Lecture 10: Global Sourcing, Profit Margin, The Item
Document Summary
Supply management the broad set of activities carried out by organisations to analyse sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services. Supply management is sometimes referred to as sourcing or purchasing. Several factors that pushed supply management activities into the limelight: Impact of sourced goods and services have on other performance metrics, including quality and delivery performance. Global sourcing applies to services and business processes, as well as manufactured goods. When much of a firm"s revenue is spent on materials and services. Supply management represents a major opportunity to increase profitability through what is known as the profit leverage effect. Cost of goods sold (cogs) the purchased cost of goods from outside suppliers. Merchandise inventory a balance sheet item that shows the amount a company paid for the inventory it has on hand at a particular point in time.
