Yield: Yield in procurement refers to the quantity or output of a product or service obtained from a particular process or operation, often expressed as a percentage. It is a critical metric used to assess the efficiency and effectiveness of procurement and production activities.
Example: In the context of procurement, yield might be used in evaluating the performance of a manufacturing process. For instance, if a company purchases raw materials to produce 1,000 units of a product but only ends up with 900 usable units due to defects, the yield for that process would be 90%. This indicates a 10% loss in production, which can be costly and inefficient. Procurement professionals use this data to optimize processes, reduce waste, and improve the overall yield.
Phonetic Notation: Yield is pronounced as [yeeld], rhyming with "field."
Fhyzics is an ASC of CIPS, UK and ACP of ASCM/APICS, USA offering procurement and supply chain certifications.
Year-to-date (YTD): Year-to-Date (YTD) is a procurement terminology that signifies the time frame beginning from the start of the current calendar or fiscal year up to the present date. It is used to provide a cumulative summary of financial or operational data over this specific period, allowing organizations to track their performance, expenditures, or achievements within the context of a single year. YTD figures are especially valuable for assessing ongoing progress, setting benchmarks, and making informed decisions.
Example: In procurement, YTD spending could be calculated by adding up all expenses incurred from the first day of the fiscal year to the present date. If a company's fiscal year begins on January 1st and today's date is October 20th, the YTD spending figure would encompass all costs incurred in that period. This allows for monitoring and managing budgets effectively and ensuring that expenditures are on track within the given timeframe.
Phonetic Notation: Year-to-Date is pronounced as [yeer-tuh-deyt], emphasizing each syllable.
Fhyzics offers the following procurement certifications:
Certified Professional in Sourcing Excellence (CPSE), IISCM, India
Certificate in Supply and Operations (Level 2), CIPS, UK
Advanced Certificate in Procurement and Supply Operations (Level 3), CIPS, UK
Diploma in Procurement and Supply (Level 4), CIPS, UK
Advanced Diploma in Procurement and Supply (Level 5), CIPS, UK
Professional Diploma in Procurement and Supply (Level 6), CIPS, UK
Year-end: Year-End in procurement refers to the conclusion of the fiscal or calendar year. It signifies the last day of a financial reporting period, and it holds significant importance in procurement and accounting. At year-end, organizations close their financial books, prepare annual financial statements, and assess their financial performance over the past year. This process involves reconciling accounts, conducting audits, and making provisions for taxes. Year-end is a crucial time for reviewing procurement activities, assessing budgets, and planning for the upcoming year. It helps organizations evaluate their fiscal health and make strategic decisions based on the year's results, ultimately impacting procurement strategies and resource allocation in the future.
Example: In a procurement context, at year-end, a company might review its procurement expenses, analyze supplier performance, and plan for the next fiscal year's procurement budget. This assessment ensures that the procurement function aligns with the organization's financial goals.
Phonetic Notation: Year-end is pronounced as [yir-end], with equal emphasis on both syllables.
Yarn-forward: Yarn-Forward is a procurement terminology often used in the context of international trade agreements, particularly in relation to rules of origin. It refers to a specific requirement that mandates that the yarn used in textile or garment production, which is being imported into a particular country, must originate in the same country or in a country that is part of a trade agreement with specific preferential rules. This rule is meant to encourage domestic or regional textile production and ensure that the majority of the value-added stages of the production process occur within the trade region.
Example: Consider a trade agreement between countries A and B, with a yarn-forward rule. If a company in country A wants to export garments to country B under the terms of this agreement, it must ensure that the yarn used in those garments is either produced in country A or comes from a country that is part of the same trade agreement.
Phonetic Notation: Yarn-Forward is pronounced as [yahrn-fawr-werd].
Fhyzics offers the following supply chain certifications:
Certified Inventory Optimization Professional (CIOP), IISCM, India
Certified Supply Chain Professional (CSCP) of APICS/ASCM, USA
Certified Planning and Inventory Management (CPIM) of APICS/ASCM, USA
Certified in Logistics, Transportation and Distribution (CPIM) of APICS/ASCM, USA
Certified in Transformation for Supply Chain (CTSC), IISCM, India
Yellow goods: Yellow Goods is a procurement terminology commonly used in the construction and heavy equipment industry. It refers to a category of machinery and equipment that is primarily painted yellow and used in construction, earthmoving, and material handling tasks. Yellow goods typically include heavy machinery such as bulldozers, excavators, backhoes, loaders, and other equipment designed for construction and infrastructure development. These machines are robust, versatile, and vital for various construction projects, making them a crucial consideration in procurement for construction companies and contractors.
Example: A construction company looking to expand its fleet might engage in the procurement of yellow goods like excavators. They would assess various suppliers, compare specifications, pricing, and after-sales service to make an informed purchasing decision. Selecting the right yellow goods can significantly impact a construction project's efficiency and overall success.
Phonetic Notation: Yellow Goods is pronounced as [yel-oh goods].