Fhyzics brought out this series of articles on supply chain terminologies to help the supply chain aspirants better prepare for supply chain and procurement job interviews. Each article will contain a set of terminologies in one of the supply chain or procurement sub-domains and are equally applicable to all industries.

Fhyzics Business Consultants Pvt. Ltd. – a boutique business consulting firm specialising in supply chain management, procurement, business analysis and new product development. Fhyzics offers consulting, certifications, and civil services training and conducts conferences. Fhyzics represents the Association of Supply Chain Management (ASCM/APICS), USA; Chartered Institute of Procurement and Supply (CIPS), UK; EEP of International Institute of Business Analysis, IIBA, Canada; REP of International Requirements Engineering Board, IREB, Germany; Indian Affiliate of Product Development and Management Association, PDMA, USA.

Top Advanced contract and financial management Terminologies

‘As is’ analysis
3D printing
ABC analysis
ABC Catrgorisation
Accounts payable
Active external integration
Active internal integration
Activity-based costing
Added value
Advanced quality planning (AQP)
AHP
Appreciation
Arm’s length
Artificial intelligence (AI)
B2B connectivity
Backwardation
Balance sheet
Balanced scorecard
BenchmarkingBig I
Bill of quantities
Bottleneck items
Bottom line
Build, operate and transfer (BOT)
Bullwhip effect
Business case
Case-based reasoning (CBR)
Cash equivalents
Cash flow
Cash flow issues
Cash flow return
Cash-to-cash cycle time (C2C)
Change management
Closed system
Collaborative product development (CPD)
Commodities exchange
Commodity indices
Competition-based pricing
Competitive benchmarking
Constant dividend
Contango
Continuous improvement
Contract awarding
Contract for difference (CFD)
Cost
Cost object
Cost of sales
Cost reimbursable contract
Cost-based metrics
Cost-plus award fee (CPAF)
Cost-plus incentive fee (CPFF)
Cost-plus pricing
Critical success factor (CSF)
Currency option
Currency swap
Current (liquidity) ratio
Current ratio
Customer relationship management (CRM)
Customer service management
Customer value-based pricing
Cycle time
Data
Debt
Demand management
Depreciation
Derivative
Direct costs
Disaster recovery
Dual sourcing
DuPont formula
E-procurement
E-system
EAN/UCC standards
Early suppliers involvement (ESI)
EBITDA
Electronic data interchange (EDI)
Enterprise resource planning (ERP) Systems
Equilibrium price
Equity
Equity (share) Capital
Equity per share
Euro project
European performance satisfaction index (EPSI) model
Exception condition
Exchange rate mechanism (ERM)
Expectation score
External benchmarking
Factor rating method
Factoring
File transfer protocol (FTP)
Firm fixed price (FFP)
First mover advantage
Five right
Fixed costs
Fixed price economic price adjustment (FPEPA)
Fixed price incentive (FPI)
Fixed/fixed currency swap
Forward contract
Forward rate
Functional benchmarking
Fungible
Futures contract
Gap score
Gate review
Gearing
Gearing ratio
Generic benchmarking
Goal and multi-objective programming
Gross profit
Gross profit margin
Gross profit percentage
Hard measures
Health and safety
Hedge
Hidden waste
Historic cost baseline
House of quality/quality function deployment (QFD)
Hybrid organisation
In-control process
Income statement
Indirect costs
Industry
Information
Innovation
Innovation audit
Innovation capability
Integrated benchmarking
Intelligent supplier relationship management system (ISRMS)
Interest rate differential (IRD)
Interim payments
Internal benchmarking
Inventory days
Irrational exuberance
ISO 9001
Just in time (JIT)
Kanban
Key performance indicator (KPI)
Key risk indicators (KRIs)
Knowledge
Kraljic matrix
Lagging measures
Lead time
Leading measure
Leverage items
Likert scale
Limited (ltd)
Limited recourse
Linear weighting techniques
Liquidity
Little I
Loss leader pricing
Lost time incidents (LTI)
Lower specification limit
Managed floating exchange rate
Management contract
Manufacturing-based approach
Material re-work costs
Material requirements planning/enterprise resource planning (MRP/ERP) system
Maverick spends
Memorandum of understanding (MOU)
Metrics
Mixed-integer programming (MIP)
Multi-sourcing
Net assets value
Net present value (NPV)
Net profit
Net profit ratio
New product development (NPD)
Non-recourse
Offtake agreement
Oligopoly
On-time delivery in full (OTIF)
Online trading platform
Operating cycle
Operating profit
Operating time
Opportunity costs
Order fulfilment
Original equipment manufacturer
Outranking techniques
Outright forward contract
Over-the-counter transactions (OTC)
Overhead costs
Overtrading
Pain/gain share mechanism
Pareto analysis
Payback
Penetration pricing
Perception score
Perfect order
Performance visibility
Plc
Poka-yoke
Preference shares
Premium
Price skimming
Prime cost
Principal
Private finance initiatives (PFIs)
Process capability index
Process metric
Process specifications
Process variability
Process width
Procurement and supply management
Procurement strategy
Product development and commercialisation
Product-based approach
Production cost
Profit
Profit margins
Profitability
Profitability ratios
Progressive dividend policy
Project finance
Project sponsor
Promise time
Psychological pricing
Public limited company (PIc)
Public-private partnerships (PPPs)
Qualitative measure
Quantitative measures
Ramp-up readiness
RATER framework
Ratio analysis
Relationship management
Repeated distribution method
Return on capital (ROC)
Return on capital employed (ROCE)
Return on investment (ROI)
Return on working capital
Return management
Rights issue
Safety performance index (SPI)
Sale and leaseback
Sales growth
Sales mix
SCOR
Scrap labour costs
Semi-variable costs
Seniority of debt
Service credits
Service encounter
Service level agreement (SLA)
SERVQUAL
Shareholder
‘Shell’ company
Should cost analysis
SMART
Soft measures
Sole-source procurement
Sourcing board
Special purpose vehicle (SPV)
Specification width
Speculating
Spot
Spot market
Stakeholder management
Stakeholders
Statistical process control (SPC)
Step costs
Step method
Sticky prices
Stockouts
Strategic items
Strike price
Sunk cost
Supplier appraisal
Supplier approval
Supplier evaluation
Supplier rating
Supplier rating system
Supplier relationship management
Supplier scorecard
Supplier selection
Supply base optimisation
Supply chain cost
Supply chain integration
Supply chain operation reference model (SCOR)
Supply chain strategy
System
System integration
Tailored product
Takt time
Target contract
Technology road map (TRM)
Third party
Throughput time
Tier 1 supplier
Time and materials (T&M)
Time to market (TTM)
Total assets turnover
Total cost of ownership (TCO)
Total quality management (TQM)
Trade payables
Trade receivables
Transcendent approach
Triple bottom line
Upper specification limit
User-based approach
Value at risk (VaR)
Value chain
Value for money
Value stream mapping (VSM)
Valued-based approach
Variable costs
Vendor managed inventory (VMI)
Weighted average cost of capital (WACC)
Whole-life costs
Without recourse
Working capital
Working capital policy
Working capital requirement (WCR)

The fifty questions presented above will help the following supply chain job interviews. Demand Planner; Production Planner; Supply Planner; Supply Chain Analyst; Supply Chain Head; Inventory Controller; Materials Planner; VP Supply Chain; Warehouse Executive; Warehouse Manager; Inventory Analyst; Master Planner; Master Scheduler; Materials Manager; Category Manager; Commodity Manager; Procurement Specialist; Purchasing Manager; Sourcing Manager; Operations Manager; Operations Director; Production Manager; Production Scheduler; Logistics Coordinator; Logistics Manager; Transportation Analyst; Inventory Manager; Director of Supply Chain; Consultant; Buyer Planner; Logistics Resource Planner; Load Planner; Quality Manager; Production Supervisor; Production Operative; Strategic Sourcing Manager; Purchasing and Inventory Clerk; Logistics Administrator; Reverse Logistics Manager; Transport Administrator; Supply Chain Solution Design Analyst; Warehouse Clerk; Production Clerk; Production Technician; Inventory Associate; Export Manager; Capacity Manager; Manufacturing Manager; Plant Manager; VP of Operations; VP of Manufacturing; Supply Clerk; Replenishment Manager; Director of Procurement; Purchasing Agent; Vendor Manager; Fulfillment Associate; Route Manager; Import Manager; Distribution Manager; Director of Transportation; Operations Assistant; Quality Technician; Business Process Analyst; Quality Assurance Engineer; Continuous Improvement Manager; Planning Engineer; Lean, Six Sigma Specialist; SAP Consultant; Import Export Executive; Supply Network Specialist; Material Availability Analyst; Team Manager SCM; SCM Trainer; Sr. Specialist Supply Chain Logistics Management; Sustainable Supply Chain Specialist; Supply Chain Planner; Manager Supply Chain Management Analytics; Procurement Lead; Manager Store; Procurement Professional; Logistics Specialist; Global Delivery Manager; Sourcing Support Specialist; Category Head; Regional Logistics Incharge; Dispatch Incharge; Digital Transformation Leader for Supply Chain; Field Delivery Executive; Indirect Procurement Officer; DC Manager; Regional Procurement Lead; Yard Supervisor; Principal Buyer; Procurement HR; Fleet Coordinator; Supplier Developer; Vendor Consultant; Transportation Analyst; Manager Hub Operations; Supply Chain Planning System Manager;