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When we think of supply chain management, we usually think of logistics.

But supply chain management is about more than just shipping goods from point A to point B.

In this lesson, we'll talk about the processes involved in managing the supply chain, such as warehousing, purchasing and materials management.

We'll also include more advanced concepts such as enterprise resource planning just in time manufacturing and quality assurance.

Purchasing.

Purchasing purchasing is the process of buying the goods and services that a business needs to operate in the supply chain.

A purchaser creates agreements with the companies suppliers.

Our purchasing department has made the decision to start buying more environmentally friendly materials.

Warehousing, warehousing, warehousing involves all of the functions related to the large scale storage of goods and materials.

This includes receiving, identifying, inspecting, storing and retrieving the goods.

To reduce its warehousing costs, Rondo Industries is moving its storage facilities to Oklahoma.

Inventory inventory.

A company's inventory is all the goods and materials that are held in stock.

This includes not only materials needed to build products, but also finished products yet to be sold every month.

We do an inventory count to find out how much stock of each part we have materials management, materials, management, materials management, deals with the movement and storage of physical items or products.

A materials manager is responsible for spare parts, quality control and inventory management.

The materials management team can reduce work stoppages by making sure the machines have spare parts order fulfillment.

Order fulfillment Order fulfillment is the process of receiving, processing and filling a customer's order.

Dell Computers has an order fulfillment system that immediately transfers a customer's online order to the production line.

Quality assurance.

Quality assurance.

Making sure that materials, parts and products are in good condition is quality assurance or Q A.

Supply chains must have good Q A.

Built in to reduce waste and improve processes.

Our quality Assurance team is responsible for a 15% drop in defective products just in time, just in time.

Just in Time or JIT is a business strategy aimed at reducing inventory and associated costs with just in time manufacturing.

Just enough materials are ordered and delivered precisely when they are needed just in time.

Manufacturing requires very good communication with suppliers.

Enterprise resource planning, enterprise resource planning, enterprise resource Planning or E.

R.

P is a system that integrates information from all the different parts of the business.

E R P can make a company more efficient by giving everyone access to the same data at all times.

Our new enterprise resource planning software has reduced confusion between the accounting and sales departments.

Now it's your turn to practice some of the words we have studied in this episode you'll hear a Siris of sentences with the word replaced with a beep.

Repeat the whole sentence, including the missing word.

For example, if you here we offer free on orders to customers in North America, you can say we offer free shipping on orders to customers in North America.

We'll play the correct answer after each question ready.

Let's give it a go.

Every month we count all the in our store room.

Answer.

Every month we count all the inventory in our store room.

Our quality team does regular inspections of incoming materials.

Answer.

Our Quality Assurance Team does regular inspections of incoming materials.

The new production line is based on the principles of Justin Manufacturing.

Answer.

The new production line is based on the principles of just in time.

Manufacturing department has expanded as we now purchase more materials locally.

Answer.

The purchasing department has expanded as we now purchase more materials locally.

That's all for this episode of video vocab.

Be sure to check out our website at www dot video vocab dot tv for more videos on business.

English vocabulary Thanks for watching and see you again soon.