Reverse Auction, Request for Quote (RFQ), Reverse Logistics, Receiving Dock

 

Get terms alphabetically:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z   

Detailed terminology list , in pdf form, will soon be available

 
 

Rack
A storage device for handling material in pallets. A rack usually provides storage for pallets arranged in vertical sections with one or more pallets to a tier. Some racks accommodate more than one-pallet-deep storage. Some racks are static, meaning that the rack contents remain in a fixed position until physically moved. Some racks are designed with a sloped shelf to allow products to “flow” down as product in the front is removed. Replenishment of product on a flow rack may be from the rear, or the front in a “push back” manner.

Radio Frequency (RF or RFID)
A form of wireless communications that lets users relay information via electromagnetic energy waves from a terminal to a base station, which is linked in turn to a host computer. The terminals can be place at a fixed station, mounted on a forklift truck, or carried in the worker's hand. The base station contains a transmitter and receiver for communication with the terminals. RF systems use either narrow-band or spread-spectrum transmissions. Narrow-band data transmissions move along a single limited radio frequency, while spread-spectrum transmissions move across several different frequencies. When combined with a bar-code system for identifying inventory items, a radio-frequency system can relay data instantly, thus updating inventory records in so-called "real time."

Random Location Storage
A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom. Although this random method requires the use of a locator file to identify part locations, it often requires less storage space than a fixed-location storage method. Also see: Fixed-Location Storage

Rate Based Scheduling
A method for scheduling and producing based on a periodic rate, e.g., daily, weekly, or monthly. This method has traditionally been applied to high-volume and process industries. The concept has recently been applied within job shops using cellular layouts and mixed-model level schedules where the production rate is matched to the selling rate

Receiving
The function encompassing the physical receipt of material, the inspection of the incoming shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.

Receiving Dock
Distribution center location where the actual physical receipt of the purchased material from the carrier occurs.

Re-consignment
A carrier service that permits changing the destination and/or consignee after the shipment has reached its originally billed destination and paying the through rate from origin to final destination.

Reorder point
A predetermined inventory level that triggers the need to place an order. This minimum level provides inventory to meet anticipated demand during the time it takes to receive the order.

Request for Quote (RFQ)
A document used to solicit vendor responses when a product

 
 

has been selected and price quotations are needed from several vendors.

Reverse Auction
A type of auction where suppliers bid to sell products to a buyer (e.g. retailer). As bidding continues, the prices decline (opposite of a regular auction, where buyers are bidding to buy products).

Reverse Logistics
A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns for repair and/or credit.

 

RtP

R2P, or RtP, stands for 'Request to Payment', and refers to the procurement process from the moment a request is made for material/services, to when these materials/services are paid and finalized.

As a simple scenario to highlight the R2P process, consider the following:

 

  • A mine site worker requires parts for drilling and raises a Work Order
  • The parts which are available in stock are committed to the work order, whilst the unavailable parts are converted into a Purchase Requisition, which flows through to the procurement team
  • The procurement team source the parts and raise a Purchase Order on the appropriate suppliers
  • The suppliers deliver the parts to site, and they are Receipted into the system
  • The invoice for the parts is paid by accounts
  • The original Work Order is closed off

Reverse Auction

A Reverse Auction is an e-procurement tool whereby the purchaser advises the details of what they need to procure, and potential suppliers compete to submit the lowest bid.

The process begins with the purchaser advising their requirements, starting price, and time-frame for bids. During the Reverse Auction, the potential suppliers are able to see the current lowest bid, and can submit lower bids against it until the auction closes.

RFI

RFI, aka Request for Information, is a process of gathering information from potential suppliers in the form of a written document, to learn more about the products/services they provide and their capabilities.

RFP

RFP, aka Request for Proposal, is a process used by Procurement when a requirement is clear, but a solid solution to the requirement is not, thus allowing potential vendors to propose their solution.

The information documented in the RFP includes Scope of Work, Terms and Conditions, Technical Specifications, Schedules, Bidder's Meetings etc.

Requested information from the supplier includes Corporate Information, Financial Details (eg: turnover), Key Personnel, Qualifications, Sub-Contractor Details, Insurances etc.

Evaluation criteria for an RFP includes Technical Compliance, Functional/Operational/Performance Capacity, Compliance to Terms and Conditions, Compliance to OH&S, Pricing etc.

RFQ

RFQ, aka Request for Quotation, is a procurement process whereby suppliers are invited to provide written quotations, based on clearly defined product/service requirements. Once all quotes are received, a simple evaluation process is performed based on weighted criteria, and a Purchase Order is released to the chosen supplier.

The RFQ document includes the material/service specification, delivery details, quantities, conditions of quote (eg: deadlines), and sections for the supplier to fill in their Price etc.

An RFQ process allows for easy comparison of bids, and it also informs a supplier of a competitive process, which can yield better savings.

RFx

RFx refers collectively to the procurement sourcing terms:

 

  • RFI (Request for Information)
  • RFP (Request for Proposal)
  • RFQ (Request for Quotation)
  • and RFT (Request for Tender)

For example, a job ad for a procurement role might say "the applicant must have RFx experience", which refers to all of the processes collectively.

E-RFx is the same except it refers to managing the complete RFx process via a web-based solution.

Risk Management

Risk Management involves

- identifying the risk

- determining the level of risk

- Terminating, Treating, Transferring, or Tolerating the risk.

- Monitoring the Risk

 
 

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Get terms alphabetically:  A B C D E F G H I J K L M N O P Q R S T U V W X Y Z   

 
 
 

 

 
 

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