2004's Supply Management Buzzwords
PurchTips edition #55
Why Should You Know What These Terms Mean?
Here are three of this year's top buzzwords and insights into why you should know the concepts behind them.
RFID This is an acronym for Radio Frequency Identification. RFID chips, which wirelessly transmit data to a receiver, are embedded into products or their packaging. Electronically reading the data from these chips allows for state-of-the-art inventory tracking. To reap various benefits and cost savings, organizations like Wal-Mart and the US Department of Defense have required their suppliers to adopt RFID technology. To serve its customers, your organization may someday adopt RFID. Suppliers now utilizing RFID can be a good resource for you to learn how to implement RFID.
Sarbanes-Oxley Act This is an Act signed into US law in 2002, with provisions coming into effect as recently as July 2004. This law requires certain new accountability of publicly held companies. Several aspects of the law apply to supply management, specifically, accounting to shareholders for Off-Balance Sheet Obligations (e.g., long-term purchase agreements with suppliers) and Timely Reporting of Material Changes (e.g., a supplier's delay in providing a critical material that may cause your customers to cancel orders or pay later than expected). Though this law primarily applies to publicly-held organizations in the US, senior executives at many privately-held organizations have voluntarily decided to implement its procedures. Your purchasing department is one decision away from having to learn and comply with this Act.
Social Responsibility Organizations have realized that they are responsible to not just shareholders, but also to the community, the environment, and human beings in general. Social responsibility is an institutionalized commitment to these constituencies. Socially responsible organizations utilize hiring practices that promote diversity, implement environmentally-friendly processes, refuse to make use of child labor, and engage in many other initiatives to maintain a high standard of ethical behavior. Purchasing organizations have begun to mandate that suppliers follow social responsibility rules either to support the purchaser's standards or to satisfy the requirements of the purchaser's customers.
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM® Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
You need a performance improvement plan that's easy to implement and quick to produce results. The NLPA can help.
Download our whitepaper "The Procurement Leader's Guide To A More Successful Team." You'll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.
Are You Getting The Most Out of Your NLPA Membership?
Members of the NLPA get more than just articles like this by email. As a member, you also get access to:
- The Procurement Training & Certification Starter Kit
- The latest Purchasing & Supply Management Salaries Report
- Leading-Edge Supply Management™ magazine
- Members-only webinars 10x per year
- And more!
If you haven't been taking advantage of these benefits, why not log in and start now?
Copyright 2004. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing.
Click here to request republishing permission.