SCM 303 Lecture Notes - Lecture 19: Contract, Force Majeure
9 Dec 2016
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Document Summary
Per-unit $ (low from direct, indirect, to high strategic investment) Volume/quantity (high from direct, indirect, to low strategic investment) Direct (part of finished goods: raw materials, parts, pieces, components, subassemblies. Indirect (supports production of finished goods: maintenance, repair, & operating supplies (mro) Strategic investment: facilities, major machinery & equipment (m&e, bid package is quite more than direct and indirect. What is a bid package: terms & conditions, specifications of the goods/services. Rules under which all bids must be submitted, and the stipulations included in most purchase contracts. Published for the information of all potential suppliers. Boilerplate: standard terms and conditions that are the same for everything, not everything is a boilerplate, do not assume all terms and conditionings are the same. Often includes: delivery dates & locations, ethical compliance, means of shipping, force majeure, free-on-board (fob, cancellations, payment terms. How many days do you have to pay the invoice (e. g. net 90 )
